Business Administration 2257 Study Guide - Midterm Guide: Interest Expense, Common Stock, Net Income

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Ian Dunn

Document Summary

The goal of this case is to familiarize you on how to account for basic financial transactions. This case has been organized by transaction date. If you have questions about completing this tutorial, you can send an email to your instructor by clicking on your professor"s name in the faculty/staff link on the left. As well, we have provided a page, called tutorial 1 faq at the end of this document, which gives answers to frequently asked questions. Bavaro invested ,000 of his own money in the company bank account in return for 100% of the common shares. Next, the company obtained a ,000 bank loan to help finance the purchase of land that was already paved and ready for use. Bavaro is putting money into the company bank account; therefore, he is increasing the cash (asset) of the company. We must increase the equity by ,000 because this is.