Question

An owner invests $1,000,000 to start a firm. S/he then goes to the bank and obtains...

An owner invests $1,000,000 to start a firm. S/he then goes to the bank and obtains a $500,000 loan. By the week’s end, the owner has arranged to rent office space for $10,000 per month (to begin next month), has hired two employees who will start work the next month, and has purchased computer equipment and office supplies for $800,000.

Questions:

  • What accounting events have occurred that will be seen in financial statements?
  • Who owns the computer equipment?
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Answer #1

For any queries or doubts related to format or any values please post in comment section, I would take that up.

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