The Ruiz Company Began Operations on January 1, 2013 and on That

question 147

Essay

The Ruiz Company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. During the year, it paid $40,000 cash for land, $10,000 for salaries, and $6,000 in cash dividends to the owners.
Required:
1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements)
2) Prepare an income statement and a balance sheet for the 2013 accounting period.

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Definitions:

Bayley Test

A developmental screening test designed to assess motor, language, and cognitive development in infants and young children.

Bayley Scales

The Bayley Scales are standardized tests used to assess the developmental functioning of infants and toddlers, focusing on cognitive, motor, and emotional development.

Mental Abilities

The cognitive functions and processes that encompass reasoning, problem-solving, memory, understanding, and similar capacities.

Motor Abilities

The capacity to perform movements and physical tasks involving coordination, strength, and control.