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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 485 |
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Decrease Notes Payable 6,000; decrease Cash 6,000.
12. No entry. This is not a transaction of the corporation, but rather a transaction between two outside parties.
Note also that the book value of the equity is not changed, even though there is clear evidence that book value is less than market value or “real†value...
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Decrease Inventory 850; increase Cash 1,310; increase Retained Earnings 460.
The final balance sheet is shown on the previous page, classified in perhaps more detail than is warranted for this simple set of items.
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Music Mart Case 2-2
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