Maria normally checks her bank balance on her phone weekly. On May 24, she checked her balance before withdrawing money from an ATM at the mall. What Maria forgot to include when calculating her balance was the $4.50 ATM fee. As a result, she overdrew her account when her cellphone bill automatically deducted two days later. When she looked at her bank statement online, Maria also noticed other errors to charges during the month. Compare Maria's receipts to her bank statement to find the errors. Circle or highlight the errors below.

D = Decrease    I = Increase. 

 

Long-term investment's that cost the company $ 21 were sold during the year for $ 46 and land that cost $ 45 was sold for $24. In addition, the company declared and paid $ 18 in cash dividends during the year. Besides the sole of land, no other sales or retirements of plant and equipment took place during the year. Pavolk did not retire any bonds during the year or issue any new common stock.

 

The company's income statement for the year follows:

 

 

 

The Value of a New Business

Anneika Lafferty and her friend Bernie Williams started an Internet business 15 months ago selling affordable musical instruments for beginners. They named it A&B Musical Instruments. Because they live near each other, Bernie keeps the inventory in his garage and Anneika has the computer system, phones, and office space in her home. While the business has done well financially, it requires more time than either expected and affordable instruments for resale are not easy to find. They have decided to try to sell the business and create a different type of online business.

 

A larger Internet music company wants to buy them but the $50,000 offered is not nearly what Anneika and Bernie expected, based on the company's potential. They quickly reject the offer. The offer is based on last year's balance sheet, shown below, and the income statement, which showed $ 175,000 in sales and $ 110,000 in expenses. Many of the expenditures were to get the business started.

 

Anneika Lafferty and her friend Bernie Williams started an Internet business 15 months ago selling affordable musical instruments for beginners. They named it A&B Musical Instruments. Because they live near each other, Bernie keeps the inventory in his garage and Anneika has the computer system, phones, and office space in her home. While the business has done well financially, it requires more time than either expected and affordable instruments for resale are not easy to find. They have decided to try to sell the business and create a different type of online business.

 

A larger Internet music company wants to buy them but the $ 50,000 offered is not nearly what Anneika and Bernie expected, based on the company's potential. They quickly reject the offer. The offer is based on last year's balance sheet, shown below, and the income statement, which showed $ 175,000 in sales and $ 110,000 in expenses. Many of the expenditures were to aet the business started.

 

A & B Musical Instruments Balance Sheet December 31, 2022

Assets

Liabilities and Capital

Cash	9,000	Liabilities
Accounts Receivable	8,000	Accounts Payable	31,000
Inventory	37,000
Equipment	25,000	Total Liabilities	31,000
		Capital
		A. Lafferty	24,000
		B. Williams	24,000
Total Assets	79,000	Total Liabilities & Capital	79,000