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Accounting entities The following business scenarios are independent from one another: 1.Chris Hann purchased an automobile from Classic Auto Sales for $10,000.
The following business scenarios are independent from one another:
1.Chris Hann purchased an automobile from Classic Auto Sales for $10,000.
2.Sal Pearl loaned $15,000 to the business in which he is a stockholder.
3.First State Bank paid interest to Strong Co. on a certificate of deposit that Strong Co. has invested at First State Bank.
4.Cindy’s Restaurant paid the current utility bill of $135 to Midwest Utilities.
5.Sun Corp. borrowed $50,000 from City National Bank and used the funds to purchase land from Carriage Realty.
6.Sue Wang purchased $10,000 of common stock of International Sales Corporation from the corporation.
7.Chris Gordon loaned $6,000 cash to his daughter.
8.Motor Service Co. earned $20,000 in cash revenue.
9.Poy Imports paid $4,000 for salaries to each of its four employees.
10.Borg Inc. paid a cash dividend of $4,000 to its sole shareholder, Mark Borg.
a.For each scenario, create a list of all of the entities that are mentioned in the description.
b.Describe what happens to the cash account of each entity that you identified in Requirement a.
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