The Ruiz Company Began Operations on January 1, 2013 and on That

question 147

Essay

The Ruiz Company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. During the year, it paid $40,000 cash for land, $10,000 for salaries, and $6,000 in cash dividends to the owners.
Required:
1) Write an accounting equation and record the effects of each transaction under the appropriate heading. (Use specific accounting titles below the statement elements)
2) Prepare an income statement and a balance sheet for the 2013 accounting period.

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Definitions:

Artificialism

The belief that environmental features were made by people.

Socioeconomic Statuses

The social standing or class of an individual or group often measured by education, income, and occupation.

Standardized Intelligence Tests

Tests designed to systematically measure and compare individuals' cognitive abilities in a consistent and controlled manner across a population.

Sprouting

The beginning of growth in plants, referring to the process where new shoots emerge from seeds, extending to similar processes in neurons.