Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 30. a. Received $80,000 cash when issuing 8,000 new common shares.
b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in three
years.
c. Hired a new aesthetician for a salary of $1,000 a month, starting next month.
d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in running
errands for the business.
e. Bought and received $1,000 in supplies for the spa on credit.
f. Paid $350 of the amount owed in ( e ).
g. Nicole sold 100 of her own personal shares to Raea Gooding for $300.
Required:
1. For each of the events, prepare journal entries if a transaction exists, checking that debits
equal credits. If a transaction does not exist, explain why there is no transaction.
2. Assuming that the beginning balances in each of the accounts are zero, complete T-accounts
to summarize the transactions ( a )–( g ).
3. Prepare a classified balance sheet at April 30 using the information given in the transactions.
4. Calculate the current ratio at April 30. What does this ratio indicate about the ability of NGS
to pay its current liabilities?

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.