Ramon Company Experienced the Following Events During 2012

question 75

Essay

Ramon Company experienced the following events during 2012:
1. Acquired $50,000 cash by issuing common stock
2. Borrowed $15,000 cash from a creditor
3. Provided services to customers for $33,000 cash
4. Paid $27,000 cash for operating expenses
5. Paid a cash dividend of $1,500 to stockholders
6. Purchased land with cash, $25,000
Required:
a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example.
b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.

---

Definitions:

Goals Of Monetary Policy

The objectives pursued by a country's central bank, including controlling inflation, managing employment levels, and maintaining currency stability.

Time Deposits

A type of bank deposit that has a specified time of maturity and typically offers a higher interest rate than a savings account, with penalties for early withdrawal.

Reserve Requirements

Reserve requirements refer to the amount of funds that a bank must hold in reserve against deposits made by customers, set by central banks to ensure liquidity.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in the central bank to lend to other banks or as currency in circulation.