EX 1-3 Business entity concept Ozark Sports sells hunting and fishing equipment
ID: 2535535 • Letter: E
Question
EX 1-3 Business entity concept Ozark Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Ozark Sports is owned and operated by Eric Griffith, a well-known sports enthusiast and hunter. Eric's wife, Linda, owns and operates Lake Boutique, a women's clothing store. Eric and Linda have established a rust fund to finance their children's college education. The trust fund is maintained by Missouri State Bank in the name of the children, Mark and Steffy a. For each of the following transactions, identify which of the entities listed should OBJ. 2 record the transaction in its records: Entities Lake Boutique Missouri State Bank Ozark Sports None of the above 1. Linda authorized the trust fund to purchase mutual fund shares. .Linda purchased two dozen spring dresses from a St. Louis designer for a special spring sale 3. Eric paid a breeder's fee for an English springer spaniel to be used as a hunting guide dog 4. Linda deposited a $2,000 personal check in the trust fund at Missouri State Bank 5. Eric paid a local doctor for his annual physical, which was required by the work men's compensation insurance policy carried by Ozark Sports. 6. Eric received a cash advance from customers for a guided hunting trip. 7. Linda paid her dues to the YWCA. 8. Linda donated several dresses from inventory for a local charity auction for the benefit of a women's abuse shelter 9. Eric paid for dinner and a movie to celebrate their twelfth wedding anniversary 10. Eric paid for an advertisement in a hunters' magazine b. What is a business transaction?Explanation / Answer
PART-1)
Solution
Explanation
1
Missouri State Bank
Trust is maintained by Missouri State Bank
2
Lake Boutique
Linda operates Lake Boutique
3
Ozark Sports
Eric owns Ozark Sports
4
Missouri State Bank
Deposit is done in Missouri State Bank
5
Ozark Sports
Eric owns Ozark Sports
6
Ozark Sports
Eric owns Ozark Sports
7
None of the entities
None of the entities will include it
8
Lake Boutique
Linda operates Lake Boutique
9
None of the entities
Personal expenses
10
Ozark Sports
Eric owns Ozark Sports
PART-2)
Business transaction:
The business transaction, also known as financial transaction refers to an event that must be measured in monetary terms and strongly impacts the company's financial position.
Solution
Explanation
1
Missouri State Bank
Trust is maintained by Missouri State Bank
2
Lake Boutique
Linda operates Lake Boutique
3
Ozark Sports
Eric owns Ozark Sports
4
Missouri State Bank
Deposit is done in Missouri State Bank
5
Ozark Sports
Eric owns Ozark Sports
6
Ozark Sports
Eric owns Ozark Sports
7
None of the entities
None of the entities will include it
8
Lake Boutique
Linda operates Lake Boutique
9
None of the entities
Personal expenses
10
Ozark Sports
Eric owns Ozark Sports
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