The Following Transactions Apply to Warren Fitness Center for 2012

question 103

Essay

The following transactions apply to Warren Fitness Center for 2012.
1) Started the business by issuing $38,000 of common stock for cash.
2) Provided services to clients and received $28,500 cash.
3) Borrowed $7,500 from the bank.
4) Paid $6,500 for rent of equipment.
5) Purchased land for $12,000.
6) Paid $16,600 of salary expense.
7) Cash dividends of $4,500 were paid to the stockholders.
Required:
a) What are the total assets of the business at the end of 2012?
b) Prepare a Statement of Cash Flows for 2012.

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Definitions:

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than its trading partners.

Fewer Resources

The state of having limited amounts of inputs required to produce goods and services, such as capital, labor, and materials.

Exchange Rates

The worth of a currency when converted into another, establishing the quantity of one currency that can be swapped for another.

Gains from Trade

The net benefits that parties obtain by voluntarily exchanging goods or services in markets.