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Business Entity Concept Assignment | Top Universities

Chapter 01 Part I Homework (Application)

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Business Entity Concept

Top Universities

Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast and hunter. Joe’s wife, Pam, owns and operates Glacier Boutique, a women’s clothing store. Joe and Pam have established a trust fund to finance their children’s college education. The trust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke.
a. For each of the following transactions, identify which of the entities listed should record the transaction in its records:
Glacier Boutique
Kalispell State Bank
Big Sky Sports
None of the above
1.  Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.

2.  Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale.

3.  Joe paid a breeder’s fee for an English Springer Spaniel to be used as a hunting guide dog.

4.  Pam authorized the trust fund to purchase mutual fund shares.

5.  Joe paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Big Sky Sports.

6.  Received a cash advance from customers for a guided hunting trip.

7.  Pam paid her dues to the YWCA.

8.  Pam donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter.

9.  Joe paid for dinner and a movie to celebrate their thirtieth wedding anniversary.

10.  Joe paid for an advertisement in a hunters’ magazine.

b. What is a business transaction? Get Accounting Homework Help Today

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