Supplies and More, a Firm Specializing in Building Materials, Engaged

question 72

Essay

Supplies and More, a firm specializing in building materials, engaged in the following four transactions during 2014:
(1) purchased and received inventory costing $18,600 million, of which $12,000 million was on account with the rest paid in cash;
(2) purchased a machine for $4,800 million with cash;
(3) issued 2,000 shares of common stock for $6,000 million in cash;
(4) issued shares of common stock to its suppliers for the remaining amount due on purchases of inventory.
REQUIRED:
Indicate the effects of each of these four transactions on the balance sheet equation.Supplies and More applies U.S.GAAP financial reporting standards and reports its results in millions of U.S.dollars ($).
Shareholders'

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Definitions:

Customer Order

A request made by a customer to purchase goods or services from a business.

Four Ps

A marketing mix model that includes Product, Price, Place, and Promotion, used to consider the key factors involved in marketing goods and services.

Marketing Mix

A foundational model in marketing that describes the various elements that can be controlled by a company to influence consumers to purchase its products. It traditionally includes product, price, place, and promotion.

Logistics

Refers to the detailed coordination of a complex operation involving many people, facilities, or supplies.