1.
(Learning Objectives 1, 4: Explain what a transaction is; analyze the impact of transactions on
accounts) Assume Casual Wear opened a store in San Francisco, starting with cash and common
stock of $98,000. Nicole Marchildon, the store manager, then signed a note payable to purchase
land 9697for $94,000 and a building for $122,000. Marchildon also paid $58,000 for equipment
and $15,000 for supplies to use in the business.
Suppose the home office of Casual Wear requires a weekly report from store managers. Write
Marchildon
E2-14A
(Learning Objectives 1, 4: Explain what a transaction is; analyze the impact of transactions on
accounts) Assume Casual Wear opened a store in San Francisco, starting with cash and common
stock of $98,000. Nicole Marchildon, the store manager, then signed a note payable to purchase
land 9697for $94,000 and a building for $122,000. Marchildon also paid $58,000 for equipment
and $15,000 for supplies to use in the business.
Suppose the home office of Casual Wear requires a weekly report from store managers. Write
Marchildon
Solution
BAlance sheet
Memo Regarding Weekly Purchases from Home office of Casual wear
With Reference with the Above BAlance Sheet , Please Provide Weekly report on Purchases of
Supplies with Closing Stock For the month and the the quantity required and the maximum time
lag between quantity demanded and Supplied for the purchases.
T Account FOr cash A/c
Liabilities Amount($) Assets Amount($)
Current liabilities Fixed Assets
Notes Payable 216000 LAnd 94000

2.
Common Stock 98000 Building 122000
Equipment 58000
Supplies 15000
CAsh 25000
314000 314000