The Following Events Occurred for Jarvis Company During 2012, Its

question 51

Essay

The following events occurred for Jarvis Company during 2012, its first year in operation:
1. issued stock to investors for $35,000 cash
2. borrowed $15,000 cash from the local bank
3. provided services to its customers and received $22,000 cash
4. paid expenses of $18,000
5. paid $12,000 cash for land
6. paid dividend of $2,000 to stockholders
7. repaid $2,000 of the loan listed in item 2
Required:
Show the effects of the above transactions on the accounting equation, below. Include dollar amounts of increases and decreases. The first is done for you. After entering all the events, calculate the total amounts of assets, liabilities, and equity at the end of the year.

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Definitions:

Vice President

An officer in a company or institution, ranking below a president and typically responsible for a specific department or function.

Managerial Accounting Reports

Financial documents that provide detailed financial and operational information tailored to the needs of a company's management for decision making.

Relevance

The quality of information that makes it significant and useful for decision-making purposes.

Chief Management Accountant

A senior-level executive responsible for overseeing a company's management accounting, providing financial insights and strategies for decision-making.