a) Depreciation increased by $2,053,333.
b) Cash went up when the Bond was issued by $19,109,969.
c) Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings.
d) Cash was pulled from retained earnings to cover the $11,690,031 difference between the plant purchase and bond issue.
e) On the Balance sheet, Plant & Equipment increased by $30,800,000.
f) Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $11,690,031, the difference between the investment $30,800,000 and the bond $19,109.969.
g) Cash went down by $30,800,000 when the plant was purchased.
h) On the Balance sheet, Long Term Debt changed by $19,109,969. a) Working capital will remain the same at $15,570,093
b) Digby will issue stock totaling $2,772,750
c) Equity will be $84,060,609
d) Total liabilities will be $121,856,406
e) Total Assets will rise to $219,477,219
f) The total investment for Digby will be $208,689,765 economicsJames L. Ziemer, the CEO of Harley-Davidson, had total remuneration of $1,350,000 in 2007 (salary, bonuses, and other compensation), whereas Roy Williams, the CEO of the nonprofit Boy Scouts of America, received total compensation of$1,576,600. How can a successful for-profit firm like Harley-Davidson justify paying its CEO the same amount as the CEO of the Boy Scouts, a non-profit organisation? financeThe trial balance of Pacilio Security Services Inc. as of January 1, 2014, had the following normal balances:
$$
\begin{array}{lrr}
\text{Cash}&&\$12,500\\
\text{Accounts Receivable}&&\text{3,500}\\
\text{Supplies}&&\text{120}\\
\text{Prepaid Rent}&&\text{1,000}\\
\text{Land}&&\text{4,000}\\
\text{Unearned Revenue}&&\text{900}\\
\text{Salaries Payable}&&\text{1,000}\\
\text{Common Stock}&&\text{8,000}\\
\text{Retained Earnings}&&\text{11,220}\\
\end{array}
$$
In 2014, Pacilio Security Services decided to expand its business to sell security systems and offer 24-hour alarm monitoring services. It plans to phase out its current service of providing security personnel at various events. The following summary transactions occurred during 2014.
**1.** Paid the salaries payable from 2013.
**2.** Acquired an additional $42,000 cash from the issue of common stock.
**3.** Rented a larger building on May 1; paid$6,000 for 12 months' rent in advance.
**4.** Paid $780 cash for supplies to be used over the next several months by the business.
**5.** Purchased 50 alarm systems for resale at a cost of$12,000. The alarm systems were purchased on account with the terms 2/10, n/30.
**6.** Returned one of the alarm systems that had a cost of $240.
**7.** Installed 40 alarm systems during the year for a total sales amount of$20,000. The cost of these systems amounted to $9,440.$15,000 of the sales were on account and $5,000 were cash sales.
**8.** Paid the installers and other employees a total of$9,500 in salaries.
**9.** Sold $36,000 of monitoring services for the year. The services are billed to the customers each month.
**10.** Paid cash on accounts payable. The payment was made before the discount period expired. At the time of purchase, the inventory had a cost of$7,920.
**11.** Paid cash to settle additional accounts payable. The payment was made after the discount period expired. At the time of purchase, the inventory had a cost of $2,880.
**12.** Collected$43,000 of accounts receivable during the year.
**13.** Performed $12,000 of security services for area events;$9,000 was on account and $3,000 was for cash.
**14.** Paid advertising cost of$1,620 for the year.
**15.** Paid $1,100 for utilities expense for the year.
**16.** Paid a dividend of$12,000 to the shareholders.
\
**Adjustment Information**
**17.** Supplies of $150 were on hand at the end of the year.
**18.** Recognized the expired rent for the year.
**19.** Recognized the balance of the unearned revenue; cash was received in 2013.
**20.** Accrued salaries at December 31, 2014, were$1,500.
\
**Required**
Record the above transactions in general journal form. (Round amounts to the nearest dollar.) 10th EditionEugene F. Brigham, Joel Houston777 solutions
11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman1,012 solutions
14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield1,471 solutions
9th EditionDaniel F Viele, David H Marshall, Wayne W McManus345 solutions
