Ramon Company Experienced the Following Events During 2012

question 48

Essay

Ramon Company experienced the following events during 2012:
1. Acquired $50,000 cash by issuing common stock
2. Borrowed $15,000 cash from a creditor
3. Provided services to customers for $33,000 cash
4. Paid $27,000 cash for operating expenses
5. Paid a cash dividend of $1,500 to stockholders
6. Purchased land with cash, $25,000
Required:
a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example.
b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.

Interpret strategies for organizational size reduction and their effects.

Analyze structural configurations proposed by Mintzberg and their coordination methods.

Describe the influence of contextual variables such as the task and general environment on organizational design.

Understand the impact of globalization on organizational structure and strategy.

---

Definitions:

Net Realizable Value

The projected sales price of products subtracted by the cost associated with their sale or disposal.

Merchandise

Goods that are bought and sold by businesses; also refers to the commodities or products available for sale in retail or wholesale.

Total Value

The entire worth of an asset, portfolio, or company, factoring in all components of value.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale transaction in real-time.