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Accounting

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Susan Kline works for Trend Press, a fairly large book publishing firm. Her best friend and rival, Lisa, works for Silver Books, a smaller publisher. Both companies issue $100,000 in bonds on July 1. Trend's bonds were issued at a discount, while Silver's were issued at a premium. Lisa sent Susan a fax the next day. She told Susan that it was obvious who the better publisher was—the market had shown its preference! She reminded Susan again of her recent increase in salary as further proof of the superiority of Silver Books.

Draft a short note for Susan to send to Lisa. Explain how such a result could occur.

  • Accounting - ,

    Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following balances for April transactions.

    Cash $12,950
    Accounts Receivable 2,000
    Office Supplies 4,600
    Prepaid Insurance 1,200

    Accounts Payable $300
    Jay Pembroke, Capital 18,000
    Jay Pembroke, Drawing (100)
    Service Fees 3,300
    Rent Expense (750)

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    Jay Pembroke

    Statement of Owner's Equity

    For Month Ended April 30, 20xx

    Cash Jay Pembroke, capital, April 1, 20xx Jay Pembroke, capital, April 30, 20xx Less withdrawals for April Net income for April
    Correct 4
    Correct 5

    Increase in capital Investment during April Jay Pembroke, capital, April 30, 20xx Less withdrawals for April Cash
    Correct 6
    Correct 7

    Total investment
    Correct 9

    Increase in capital Investment during April Jay Pembroke, capital, April 1, 20xx Jay Pembroke, capital, April 30, 20xx Net income for April
    Correct 10
    Correct 11

    Less increase in capital Less investment during April Less Jay Pembroke, capital, April 1, 20xx Less Jay Pembroke, capital, April 30, 20xx Less withdrawals for April
    Correct 12
    Correct 13

    Increase in capital Decrease in capital
    Correct 14
    Correct 15

    Increase in capital Investment during April Jay Pembroke, capital, April 1, 20xx Jay Pembroke, capital, April 30, 20xx Less withdrawals for April Net income for April
    Correct 16
    Correct 17

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