Bryant Company sells a wide range of goods through two

Bryant Company sells a wide range of goods through two retail stores operated in adjoining
cities. Most purchases of goods for resale are on invoices. Occasionally, a short-term note
payable is used to obtain cash for current use. The following transactions were selected from
those occurring during 2010:a. Purchased merchandise on credit, $18,000 on January 10,
2010; the company uses a periodic inventory system.b. Borrowed $45,000 cash on March 1,
2010, from City Bank and gave an interest-bearing note payable: face amount, $45,000, due at
the end of six months, with an annual interest rate of 10 percent payable at maturity.Required:1.
Describe the impact of each transaction on the balance sheet equation. Indicate the effects
(e.g., cash + or -), using the following schedule:Date Assets Liabilities Stockholders’ Equity2.
What amount of cash is paid on the maturity date of the note?3. Discuss the impact of each
transaction on Bryant’s cash flows.4. Discuss the impact of each transaction on the current
ratio.View Solution:
Bryant Company sells a wide range of goods through two
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