Accounting I | © 2008 Tibebe S. Mengistu |
Assignment Two ABC Pharmacy is a well known drug store in your area. A condensed balance sheet for August 31, 2007 follows ($ in millions): Assets Cash $ 13 Accounts Receivable 614 Inventories 2,831 Property and other assets 3,646 Total Assets $7,104 Liabilities and Stockholders' Equity Accounts Payable $1,364 Other Liabilities 1,506 Stockholders' equity 4,234 Total Liabilities and Stockholders' Equity $7,104 On September 1 and 2 the following transactions were added: Issued 1,000,000 shares of common stock to employees for cash, $30. Issued 1,000,000 shares of common stock for the acquisition of special equipment from a supplier, $45. Borrowed cash signing a note payable for $12. Purchased equipment for cash $13. Purchased inventories on account $90. Disbursed cash on account (to reduce the accounts payable) $35. Sold display equipment to retailer on account at cost $1. Collected cash on account $8. Prepare a Balance Sheet as of September 2. |