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  • Transaction Analysis Global Grocer 1-9 Transaction Analysis 1-9

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    hdwey
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    The company raised $80,000 through issuing common stock, borrowed $50,000 through a short-term bank loan and $25,000 through a mortgage loan to finance operations. They used the cash to pay $18,000 in franchise fees, $3,000 for three months of prepaid rent, purchase a $70,000 warehouse with $30,000 for the land and $40,000 for the building, $5,000 for store fixtures, and $8,000 for merchandise inventory with the remaining $10,000 put on credit.

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    The company raised $80,000 through issuing common stock, borrowed $50,000 through a short-term bank loan and $25,000 through a mortgage loan to finance operations. They used the cash to pay $18,000 in franchise fees, $3,000 for three months of prepaid rent, purchase a $70,000 warehouse with $30,000 for the land and $40,000 for the building, $5,000 for store fixtures, and $8,000 for merchandise inventory with the remaining $10,000 put on credit.

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    © All Rights Reserved
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    12 views1 page

    Transaction Analysis Global Grocer 1-9 Transaction Analysis 1-9

    Uploaded by

    hdwey
    The company raised $80,000 through issuing common stock, borrowed $50,000 through a short-term bank loan and $25,000 through a mortgage loan to finance operations. They used the cash to pay $18,000 in franchise fees, $3,000 for three months of prepaid rent, purchase a $70,000 warehouse with $30,000 for the land and $40,000 for the building, $5,000 for store fixtures, and $8,000 for merchandise inventory with the remaining $10,000 put on credit.

    Copyright:

    © All Rights Reserved
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    of 1

    On August 31, the following transaction are to be recorded:

    1. Cash raised by issuing $80,000 common stock (financing)


    2. Cash raised by borrowing $50,000 short-term loan from the bank (financing)
    3. payment of $18,000 franchise fee was paid to Global Grocer International (investing)
    4. Three months’ rent of $3000 prepaid in cash (investing)
    5. Warehouse property purchased for $70,000 cash, land allocated $30,000, warehouse building allocated
    $40,000. (investing)
    6. Cash raised from a $25,000 mortgage loan (financing)
    7. Store fixtures purchased for $5,000 cash (investing)
    8. Merchandise inventory purchased for $18,000, $8000 paid in cash, the rest put on credit. (investing)
    9. Global Grocer hired two employees to start work on September 1st, 2014. (No change)

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