The Following Events Are for Berea Company for 2012 Its

question 46

Essay

The following events are for Berea Company for 2012 its first year in business.Assume that all involve receipt or payment of cash.
1.acquired $25,000 cash by issuing stock to owners
2.borrowed $7,000 cash from creditors
3.provided services to customers and received $50,000
4.paid operating expenses amounting to $38,000
5.purchased land for $10,000
6.paid a dividend of $5,000 to owners
Required:
a)Show the effects of each of these events on the accounting equation shown below,showing dollar amounts of increases and decreases; calculate totals for each account at the end of the period. b)Prepare an income statement and balance sheet for 2012.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the variance from the mean.

Bullwhip Effect

The phenomenon where variations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.

Shortage Gaming

A strategy used in supply chain management where participants may exaggerate their needs to avoid stockouts, often leading to inefficiencies or distortions in supply chains.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.