Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1.3EX
a)
To determine
Business Entity Concept:
Business Entity Concept emphasizes that the transactions related to a business needs to be recorded separately. It denotes that each business is a separate, individual unit, and all the transactions relating to that particular business should be recorded separately.
To Identify: The given transactions and their associated entities.
b)
To determine
To Explain: The business transaction.
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Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing
trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast
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Joe and Pam have established a trust fund to finance their children's college education. The
trust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke
a. For each of the following transactions, identify which of the entities listed should
record the transaction in its records:
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G
Kalispell State Bank
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1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank
2. Pam purchased two dozen spring dresses from a Spokane designer for a special
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guide dog
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Chapter 1 Solutions
Accounting (Text Only)
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