Rowdy Company's First Year in Operation Was 2014

question 51

Essay

Rowdy Company's first year in operation was 2014. The following events occurred in 2014:
1. Acquired $5,000 stock from issuing common stock.
2. Purchased inventory for $3,000 cash.
3. Sold inventory that had cost $2,100 for $3,600 cash.
Required:
a) Record the events in the statements model, below. Show amounts of increases and decreases. Indicate whether each cash flow is an operating activity, investing activity, or financing activity.
b) Determine the total for each column after you have recorded the events.
c) What was the amount of total assets at the end of the period?

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Definitions:

Aging

The process of becoming older, which entails biological, emotional, intellectual, and social changes.

Physical Changes

Alterations in the physical state or appearance of a substance or object, without changing its chemical composition.

Deterioration

The process of becoming progressively worse or the decline in quality or condition.

Mental Abilities

The cognitive capacities that include reasoning, problem-solving, planning, abstract thinking, comprehension, and learning.