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36SATKAFISHINGEXPEDITIONS,INC,RECORDEDTHEFOLLOWINGTRANSACTIONSINJULYINDICATETHEEFFECTSTHATEACHOFTHESETRANSACTIONSWILLHAVEUPONTHEFOLLOWINGSIXTOTALAMOUNTSINTHECOMPANYSFINANCIALSTATEMENTSFORTHEMONTHOFJULYORGANIZEYOURANSWERINTABULARFORM,USINGTHECOLUMNHEADINGSSHOWN,ANDUSETHECODELETTERSIFORINCREASE,DFORDECREASE,ANDNEFORNOEFFECT37ANUMBEROFTRANSACTIONSOFCLAYPOOLCONSTRUCTIONAREDESCRIBEDBELOWINTERMSOFACCOUNTSDEBITEDANDCREDITEDAINDICATETHEEFFECTSOFEACHTRANSACTIONSUPONTHEELEMENTSOFTHEINCOMESTATEMENTANDTHEBALANCESHEETUSETHECODELETTERSIFORINCREASE,DFORDECREASE,ANDNEFORNOEFFECTORGANIZEYOURANSWERINTABULARFORM,USINGTHECOLUMNHEADINGSSHOWN,BWRITEAONESENTENCEDESCRIPTIONOFEACHTRANSACTION38SHOWNBELOWARESELECTEDTRANSACTIONSOFTHEARCHITECTURALFIRMOFBAXTER,CLAXTER,ANDSTONE,2INCAPREPAREJOURNALENTRIESTORECORDTHETRANSACTIONSINTHEFIRMSACCOUNTINGRECORDSBIDENTIFYANYOFTHEABOVETRANSACTIONSTHATWILLNOTRESULTINACHANGEINTHECOMPANYSNETINCOME310TRAFFLETENTERPRISESINCORPORATEDONMAY3,2009THECOMPANYENGAGEDINTHEFOLLOWINGTRANSACTIONSDURINGITSFIRSTMONTHOFOPERATIONSAPREPAREJOURNALENTRIES,INCLUDINGEXPLANATIONS,FORTHEABOVETRANSACTIONSBPOSTEACHENTRYTOTHEAPPROPRIATELEDGERACCOUNTSCPREPAREATRIALBALANCEDATEDMAY31,2009ASSUMEACCOUNTSWITHZEROBALANCESARENOTINCLUDEDINTHETRIALBALANCE345311THEMCMILLANCORPORATIONINCORPORATEDONSEPTEMBER2,2009THECOMPANYENGAGEDINTHEFOLLOWINGTRANSACTIONSDURINGITSFIRSTMONTHOFOPERATIONSAPREPAREJOURNALENTRIES,INCLUDINGEXPLANATIONS,FORTHEABOVETRANSACTIONSBPOSTEACHENTRYTOTHEAPPROPRIATELEDGERACCOUNTSCPREPAREATRIALBALANCEDATEDMAY30,2009ASSUMEACCOUNTSWITHZEROBALANCESARENOTINCLUDEDINTHETRIALBALANCE678EXERCISE52TUTORSFORRENT,INC,PERFORMSADJUSTINGENTRIESEVERYMONTH,BUTCLOSESITSACCOUNTSONLYATYEARENDTHECOMPANYSYEARENDADJUSTEDTRIALBALANCEDATEDDECEMBER31,2009,WASTUTORSFORRNET,INCADJUSTEDTRIALBALANCEDECEMBER31,2009CASH91,100ACCOUNTSRECEIVABLE4,500SUPPLIES300EQUIPMENT12,000ACCUMULATEDDEPRECIATIONEQUIPMENT5,000ACCOUNTSPAYABLE1,500INCOMETAXESPAYABLE3,500CAPITALSTOCK25,000RETAINEDEARNINGS45,000DIVIDENDS2,000TUTORINGREVENUEEARNED96,000SALARYEXPENSE52,000SUPPLYEXPENSE1,2009ADVERTISINGEXPENSE300DEPRECIATIONEXPENSEEQUIPMENT1,000INCOMETAXESEXPENSE11,600176,000176,000APREPAREANINCOMESTATEMENTANDSTATEMENTOFRETAINEDEARNINGSFORTHEYEARENDEDDECEMBER31,2009ALSOPREPARETHECOMPANYSBALANCESHEETDATEDDECEMBER31,2009BDOSETHECOMPANYAPPEARTOBELIQUIDDEFENDYOURANSWERCHASTHECOMPANYBEENPROFITABLEINTHEPASTEXPLAIN10EXERCISE53WILDERNESSGUIDESERVICES,INC,PERFORMSADJUSTINGENTRIESEVERYMONTH,BUTCLOSESITSACCOUNTSONLYATYEARENDTHECOMPANYSYEARENDADJUSTEDTRIALBALANCEDATEDDECEMBER31,2009,FOLLOWSWILDERNESSGUIDESERVICES,INCADJUSTEDTRIALBALANCEDECEMBER31,2009CASH12,200ACCOUNTSRECEIVABLE31,00011CAMPINGSUPPLIES7,900UNEXPIREDINSURANCEPOLICIES2,400EQUIPMENT70,000ACCUMULATEDDEPRECIATIONEQUIPMENT60,000NOTESPAYABLEDUE4/1/1018,000ACCOUNTSPAYABLE9,500CAPITALSTOCK25,000RETAINEDEARNINGS15,000DIVIDENDS1,000GUIDEREVENUEEARNED102,000SALARYEXPENSE87,500CAMPINGSUPPLYEXPENSE1,200INSURANCEEXPENSE9,600DEPRECIATIONEXPENSEEQUIPMENT5,000INTERESTEXPENSE1,700229,500229,500APREPAREANINCOMESTATEMENTANDSTATEMENTOFRETAINEDEARNINGSFORTHEYEARENDEDDECEMBER31,2009ALSOPREPARETHECOMPANYSBALANCESHEETDATEDDECEMBER31,2009HINTUNPROFITABLECOMPANIESHAVENOINCOMETAXESEXPENSEBDOSETHECOMPANYAPPEARTOBELIQUIDDEFENDYOURANSWERCHASTHECOMPANYBEENPROFITABLEINTHEPASTEXPLAIN1213EXERCISE510ORGONFOODSBALANCESHEETDECEMBER31,2009ASSETSCASH6,800ACCOUNTSRECEIVABLE7,200OFFICESUPPLIES700PREPAIDRENT1,70014EQUIPMENT12,000ACCUMULATEDDEPRECIATIONEQUIPMENT4,8007,200TOTALASSETS23,200LIABILITIESACCOUNTSPAYABLE2,200INCOMETAXESPAYABLE1,800TOTALLIABILITIES4,000STOCKHOLDERSEQUITYCAPITALSTOCK10,000RETAINEDEARNINGS9,200TOTALSTOCKHOLDERSEQUITY19,200TOTALLIABILITIESANDSTOCKHOLDERSEQUITY23,200OTHERINFORMATIONPROVIDEDBYTHECOMPANYISASFOLLOWSTOTALREVENUEFORTHEYEARENDEDDECEMBER31,200925,500TOTALECPENSEFORTHEYEARENDEDDECEMBER31,200920,400TOTALSTOCKHOLDERSEQUITY,JANUARY1,200914,800COMPUTEANDDISCUSSBRIEFLYTHESIGNIFICANCEOFTHEFOLLOWINGMEASURESASTHEYRELATETOOREGONFOODSANETINCOMEPERCENTAGEIN2009BRETURNONEQUITYIN2009CWORKINGCAPITALONDECEMBER31,2009DCURRENTRATIOONDECEMBER31,20091516102LISTEDBELOWAREEIGHTEVENTSORTRANSACTIONSOFGEMSTARCORPORATIONINDICATETHEEFFECTSTHATEACHOFTHESETRANSACTIONSONTHEFOLLOWINGFINANCIALSTATEMENTSCATEGORIESORGANIZEYOURANSWERINTABULARFORM,USINGTHECOLUMNHEADINGSUSETHEFOLLOWINGCODELETTERSTOINDICATETHEEFFECTSOFEACHTRANSACTIONONTHEACCOUNTINGELEMENTLISTEDINTHECOLUMNHEADINGIFORINCREASE,DFORDECREASE,ANDNEFORNOEFFECT17109SWANSONCORPORATIONISSUED8MILLIONOF20YEAR,8PERCENTBONDSONAPRIL1,2009,AT102INTERESTISDUEONMARCH31ANDSEPTEMBER30OFEACHYEAR,ANDALLOFTHEBONDSINTHEISSUEMATUREONMARCH31,2029SWANSONSFISCALYEARENDSONDECEMBER31PREPARETHEFOLLOWINGJOURNALENTRIESEX109A2009APR1CASH8,160,000PREMIUMONBONDSPAYABLE160,000BONDPAYABLE8,000,000TORECORDISSUANCEOFBONDSAT102B2009SEPT30BONDINTERESTEXPENSE316,000PREMIUMONBONDSPAYABLE4,000CASH320,000TOPAYINTERESTANDAMORTIZEBONDPREMIUMSEMIANNUALINTERESTPAYMENT8,000,000X8X1/2320,000LESSPREMIUMAMORTIZED160,000/20YRSX1/24,000INTERESTEXPENSE316,000C2029MAR31BONDINTERESTPAYABLE160,000BONDINTERESTEXPENSE158,000PREMIUMONBONDSPAYABLE2,00018CASH320,000TORECORDFINALINTERESTPAYMENTANDAMORTIZEBONDPREMIUM1INTERESTEXPENSEFOR3MONTHSIN2029316,000X3/6158,0002PREMIUMAMORTIZEDIN20294,000X3/62,0003INTERESTPAYABLEFROM12/31/28320,000X3/6160,000MAR31BONDSPAYABLE8,000,000CASH8,000,000TORETIREBONDSATMATURITYD1AMORTIZATIONOFABONDPREMIUMDECREASESANNUALINTERESTEXPENSEAND,CONSEQUENTLY,INCREASESANNUALNETINCOME2AMORTIZATIONOFABONDPREMIUMISANONCASHCOMPONENTOFTHEANNUALINTERESTEXPENSECOMPUTATIONTHUS,ITHASNOEFFECTUPONANNUALNETCASHFLOWFROMOPERATINGACTIVITIESRECEIPTOFCASHUPONISSUANCEOFBONDSANDPAYMENTOFCASHTORETIREBONDSATMATURITYAREBOTHCLASSIFIEDASFINANCINGACTIVITIES1010MELLILOCORPORATIONISSUED5MILLIONOF20YEAR,95PERCENTBONDSONJULY1,2009,AT98INTERESTISDUEONJUNE30ANDDECEMBER31OFEACHYEAR,ANDALLOFTHEBONDSINTHEISSUEMATUREONJUNE30,2009MELLILOSFISCALYEARENDSONDECEMBER31PREPARETHEFOLLOWINGJOURNALENTRIESEX101019A2009JULY1CASH4,900,000DISCOUNTONBONDSPAYABLE100,000BONDSPAYABLE5,000,000TORECORDISSUANCEOFBONDSAT98B2009DEC31BONDINTERESTEXPENSE240,000DISCOUNTONBONDSPAYABLE2,500CASH237,500TOPAYINTERESTANDAMO
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