What is the normal balance (debit or credit) of assets, liabilities, stockholders' equity, revenues, and expenses?
Step 11 of 2
- Assets - balance
- Liabilities - credit balance
- Stockholders equity - credit balance
- Revenues - credit balance
- Expenses - balance
Sandra's Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October.
- Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at October 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31.
Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for
$ 1. Record each transaction in July for Great Adventures. 2. Post each transaction to T-accounts. 3. Prepare a trial balance.
Gator Investments provides financial services related to investment selections, retirement planning, and general insurance needs. For the current year, the company reports the following amounts:
In addition, the company had common stock of $100,000 at the beginning of the year and issued an additional$11,000 during the year. The company also had retained earnings of $30,300 at the beginning of the year and paid dividends of$5,200. Required: Prepare the income statement, statement of stockholders' equity, and balance sheet for Gator Investments.