accounting queston 1

Sigchi4life
Category:
Accounting
Price: $5 USD

Question description

Carlos Bueso recently started a business. During the first few days of operation, Mr. Bueso transferred $30,000 from his personal account into a business account for a company he named Bueso Enterprises. Bueso Enterprises borrowed $40,000 from the State Bank of Texas. Mr. Bueso's father-in-law, James Bright, invested $64,000 into the business for which he received a 25 percent ownership interest. Bueso Enterprises purchased a building from Leigh Realty Company. The building cost $120,000 cash. Bueso Enterprises earned $28,000 in revenue from the company's customers and paid its employees $25,000 for salaries expense.


Required:

Mention what happened to the cash accounts of the following entities.


Entities
Distribution of Cash

Mr. Bueso (personal account)
Personal account was (Click for List) increased decreased by the $30,000 cash deposited in the Bueso Enterprises' business account.

Bueso Enterprises
Cash account (Click for List) increased decreased by the $30,000 cash deposited by Mr. Bueso.

Cash account (Click for List) decreased increased by $40,000 cash borrowed from State Bank of Texas.

Cash account (Click for List) increased decreased by $64,000 cash invested by James Bright.

Cash account (Click for List) decreased increased by $120,000 cash used to purchase building.

Cash account (Click for List) increased decreased by $28,000 cash revenue earned.

Cash (Click for List) increased decreased by $25,000 when employees received payment for salaries.

State Bank of Texas
Cash account (Click for List) decreased increased by $40,000 cash loaned to Bueso Enterprises.

James Bright, father-in-law, personal account
Cash (Click for List) decreased increased by $64,000 cash invested in Bueso Enterprises.

Leigh Realty Company
Cash (Click for List) increased decreased by $120,000 received from Bueso Enterprises to purchase building.

Bueso Enterprises' customers
Cash (Click for List) decreased increased by $28,000 when customers paid for services performed.

Bueso Enterprises' employees
Cash (Click for List) decreased increased by $25,000 when employees received payment


The answer is either increased or decreased

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(Top Tutor) Daniel C.
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