Padma’s Pools Inc. paid $500 for office supplies. What was the impact of this transaction on Padma’s cash flow?
Sally’s BigBox Store issued 1,000 shares of common stock with par value of $10 each and market value of $16 each in exchange for a new building. What was the impact of this transaction on Sally’s cash flow?
Jose sells $500 worth of merchandise to a client on June 1. He delivers the product and invoices the customer on June 10. The customer pays Jose on July 9. What is Jose’s revenue for June and July, respectively, under the cash and accrual methods of accounting?
Jamal’s Car Repair purchases a new piece of equipment with a 10-year useful life for $10,000. What is the impact to Jamal’s net income in the year of purchase if he expenses the equipment? If he capitalizes it using straight-line depreciation?
Mariela’s Shop had revenues of $10,000 and expenses of $6,000 and has cash on hand of $5,000. What is Mariela’s net income or net loss?