Ramirez Company Experienced the Following Events During Year 1

Essay

Ramirez Company experienced the following events during Year 1:
Acquired $50,000 cash by issuing common stockBorrowed $25,000 cash from a creditorProvided services to customers for $38,000 cashPaid $32,000 cash for operating expensesPaid a cash dividend of $2,500 to stockholdersPurchased land with cash, $20,000Required:a)Show how each of these events affects the accounting equation. Enter "NA" for elements of the accounting equation that are not affected by the transaction. If one element of the accounting equation is affected by an increase and also by a decrease, enter each part on a separate line (i.e. asset exchange transaction where one asset increases and another asset decreases). (The effects of the first event are shown below.)b)Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.