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.

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Definitions:

Environmental Justice

The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Food Justice

The movement seeking equity in access to healthy, nutritious food for all individuals, regardless of socio-economic status.

Food Policy Councils

Collaborative networks that address food system issues and work toward more sustainable food policies at local, state, or national levels.

Tradeable Permit Plan

An environmental policy tool that allows companies or countries to buy and sell allowances for the emission of pollutants, encouraging reduction in emissions in a cost-effective manner.