Preparation of Balance Sheet After a Series of Transactions
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question 35

Essay

Preparation of balance sheet after a series of transactions
The balance sheet was as follows for Custom Ceramics on February 1, 2010:
$\begin{array}{c}\text {Custom Ceramics}\\\text { Balance Sheet }\\\text {February 1, 2010}\\\begin{array}{|l|r|l|l|r|r|}\hline \text { Assets } & & & \text { Liabilities \& Shareholder's' Equity } \\\hline \text { Land } & 80,000 & & \text { Liabilities: } & & \\\hline \text { Buildings } & 50,000 & & \text { Notes payable } & & \$ 40,000 \\\hline \text { Office Equipment } & 30,000 & & \text { Accounts payable } & & \underline{6,000} \\\hline \text { Accounts receivable } & 5,200 & & \text { Total liabilities } & & 46,000 \\\hline \text { Cash } & \$ 7,000 & & \text { Shareholders' equity } & & \\\hline & & & \text { Share capital } & \$ 100,000 & \\\hline & & & \text { Retained earnings } & 26,200 & \$ 126,200 \\\hline & & & \text { Total liabilities } & & \\\hline \text { Total assets } & \$ 172,200 & & \text { Shareholders' equity } & & \$ 172,200 \\\hline \end{array}\end{array}$
During the first week of February, the following transactions occurred:
* The business used cash to pay off $5,000 of its accounts payable. (No payment was made on the notes payable.)
* Additional share capital was issued to Joan Custom for $15,000 cash.
* Equipment was purchased on credit for $1,800
* The business collected $4,000 cash from accounts receivable.
Complete the balance sheet for Custom Ceramics as of February 8, 2010.
$\begin{array}{c}\text {Custom Ceramics }\\\text {Balance Sheet }\\\text {February 8,2010}\\\begin{array}{|l|l|l|l|l|l|}\hline\text { Assets } &\quad\quad &\quad\quad & \text { Liabilities \& Shareholders' Equity } \\\hline \text { Land } & & & \text { Liabilities: } & \quad\quad&\quad\quad \\\hline \text { Buildings } & & & \text { Notes payable } & & \$ \\\hline \text { Office Equipment } & & & \text { Accounts payable } & & \\\hline \text { Accounts receivable } & & & \text { Total liabilities } & & \$ \\\hline \text { Cash } & & & \text { Shareholder's' equity } & & \\\hline& & & \text { Share capital } & & \\\hline & & & \text {Retained earnings}& & \$ \\\hline & & & \text {Total liabilities} & & \\\hline \text { Total assets} & \$ & & \text {Shareholder's' equity} & & \$ \\\hline \end{array}\end{array}$

Identify the factors contributing to job satisfaction and how they influence employee performance and organizational outcomes.

Differentiate between the types of organizational commitment and understand their implications on employee behavior.

Understand the exit-voice-loyalty-neglect model and how employees respond to job dissatisfaction.

Understanding the concept of becoming an ethical and effective helper in a multicultural society as a continuous process.

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Definitions:

Declaration of Dividends

The formal announcement by a company's board of directors to distribute profits to shareholders, specifying the dividend amount and payment date.

Liquidating Dividend

A type of dividend paid by a company from its capital base, essentially returning part of the investors' original investment.

Paid-in Capital

Funds raised by a company through the issuance of shares to investors, representing the capital provided by shareholders through direct investments or share purchases.

Par Value

The face value of a bond or stock as stated on the certificate or document, distinct from its market value.