Steve Sims Started a Consulting Business on January 1,2012,and the Business

question 105

Essay

Steve Sims started a consulting business on January 1,2012,and the business engaged in the following transactions during the year:
1.Issued $7,000 of common stock for cash
2.Provided services on account,$25,500
3.Incurred $11,500 of operating expense,but only paid $5,000 of this amount
4.Collected $9,000 of the revenue that was previously recorded on account
5.Paid a cash dividend of $4,000 to the stockholders
Required:
a)Show the effects of the above transactions on the accounting equation. b)Prepare an income statement and statement of cash flows for 2012.

Understand the advantages of different wheel types, including cast spoke and hub-piloted disc wheels.

Know the specifications and uses of cast spoke wheels, including spoke number and application.

Identify the correct tire sizes for Class 8 highway trucks.

Recognize common causes of tire wear and damage.

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Definitions:

Underwriting Fee

A fee charged by underwriters for assessing, guaranteeing, and distributing a new issue of securities to the public.

Common Stock

A type of ownership in a corporation that grants holders voting rights and a share in the company’s profits via dividends.

Rights Offering

Rights offering is a financial opportunity provided to existing shareholders to purchase additional shares directly from the company at a predetermined price, usually lower than the market price, before the shares are offered to the public.

Subscription Price

The price at which existing shareholders are allowed to purchase new shares of a company, often during a rights offering.