Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 1, Problem 17E
To determine
Prepare balance sheet for the month ended October 31, for the Company E
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Platinum Corporation belongs to the rubber tire trading industry. Its most recent balance sheet and income statement appear below:
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2
Year 1
Assets
Current assets:
Cash....................................................................
$ 30
$ 110
Accounts receivable............................................
210
260
Inventory............................................................
190
170
Prepaid expenses.................................................
70
70
Total current assets................................................
500
610
Plant and equipment, net.......................................
810
740
Total assets.............................................................
$1,310
$1,350…
Presented below is the balance sheet for Sabino Family Dentistry on January 1 of the current year.
SABINO FAMILY DENTISTRY
Statement of Financial Position (Balance Sheet)
January 1, 20__
Assets Liabilities & Shareholders’ Equity
Cash $ 33,000 Liabilities:
Accounts receivable......... 51,150 Accounts payable .............................. $ 74,250
Land 313,500 Total liabilities................................. $ 74,250
Building........................... 371,250 Equity:
Equipment........................ 57,750 Share capital.................................... 752,400
Total liabilities and
Total assets....................... $826,650 equity................................................... $826,250
During the…
I need prepare the income statement in accordance with genrally accepted accounting principles.
Revenue:
services provides to cotumers.......$17,000
investment by stockholders..............5,000
loan from bank.....................................15,000
total $37,000
expenses:
Payments to long-term creditors...........................$11,700
expenses required to provide
services to cutomers....................................................7,800
purchased of land......................................................16,000
total 35,500
net income $1,500
Chapter 1 Solutions
Principles of Financial Accounting.
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by 100,000...Ch. 1 - Brunswick borrows 50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Identify three actual businesses that offer...
Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQCh. 1 - What type of accounting information might be...Ch. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Describe the three basic forms of business...Ch. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Identify the two main categories of accounting...Ch. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Give two examples of expenses a business might...Ch. 1 - What is the purpose of the statement of retained...Ch. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - GOOGLE Access the SEC EDGAR database (SEC.gov) and...Ch. 1 - Understanding accounting Choose from the following...Ch. 1 - Identifying accounting users C2 Identify the...Ch. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Identifying accounting principles and assumptions...Ch. 1 - Applying the accounting equation A1 a. Total...Ch. 1 - Applying the accounting equation Use the...Ch. 1 - Use Google 's December 31, 2017, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Classifying activities reflected in the accounting...Ch. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Using the accounting equation Determine the...Ch. 1 - Using the accounting equation Answer the following...Ch. 1 - Analysis using the accounting equation Zen began a...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions using the...Ch. 1 - Prob. 14ECh. 1 - Preparing an income statement On October 1, Ebony...Ch. 1 - Preparing a statement of retained earnings Use the...Ch. 1 - Prob. 17ECh. 1 - Preparing a statement of cash flows Use the...Ch. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Match each transaction a through e to one of tire...Ch. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Identifying effects of transactions on financial...Ch. 1 - Computing missing information using accounting...Ch. 1 - Preparing an income statement P2 As of December...Ch. 1 - Prob. 4APCh. 1 - Prob. 5APCh. 1 - Preparing a statement of cash flows P2 Following...Ch. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Determining expenses, liabilities. equity, and...Ch. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Describing business activities C5 A start-up...Ch. 1 - Describing business activities An organization...Ch. 1 - Prob. 1BPCh. 1 - Prob. 3BPCh. 1 - Prob. 4BPCh. 1 - Prob. 5BPCh. 1 - Prob. 6BPCh. 1 - Prob. 8BPCh. 1 - Determining expenses, liabilities, equity, and...Ch. 1 - Prob. 11BPCh. 1 - Identifying risk and return All business decisions...Ch. 1 - Prob. 13BPCh. 1 - Prob. 14BPCh. 1 - Prob. 1SPCh. 1 - COMPANY ANALYSIS Key financial figures for Apple's...Ch. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - ETHICS CHALLENGE Tana Thorne works in a public...Ch. 1 - COMMUNICATING IN PRAC TICE APPLE Refer to this...Ch. 1 - TAKING IT TO THE NET A2 Visit the EDGAR database...Ch. 1 - ENTREPRENEURIAL DECISION APPLE Refer to this...
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- Prepare Income Statement, Statement of Retained Earnings and Balance Sheet for the year ended December 31, 2020. KEN HENSLEY ENTERPRISES, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,170 Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,400 Studio supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7,600 Unexpired insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500 Prepaid studio rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4,000 Recording equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Accumulated depreciation: recording equipment. . . . . . . . . . . . . . . .…arrow_forwardThe following are the balance sheet and income statement data of PROSPERITY INC. Balance Sheet Accounts (December 31) Cash Marketable Securities Accounts Receivable-net................ Inventories Land...... Building - net Machinery and Equipment-net............ Other Assets Prepaid Expenses Notes Payable, Trade Accounts Payable, Trade........... Expenses Payable Long Term Notes Due 2025. 15% Preferred Stock, P100 par............. Common Stock, P10 par... Retained Earnings ***********... 20 x 2 Income Statement Accounts Sales... Sales Returns and allowances Inventory, December 31, 20 x 2 Inventory, December 31, 20 x 1... Purchases Selling Expenses..... Additional Information: Dividends paid on preferred stock Dividends paid on common stock Market price per share on common stock P 20 X 2 Working Capital Current Ratio Acid Test Ratio Receivable Turn-over Age of Receivables (use 365 days) Inventory Turn-over Working Capital Turn-over 150,000 850,000 500,000 750,000 500,000 550,000…arrow_forwardListed below are items reported on the financial statements of the Huntington Company as of June 30: Cash flow provided by operating activities .. . Cash, beginning-of-year ................ . Cash, end-of-year ..................... . Inventory ............................ . Accounts receivable ................... . Cash flow from investing activities ........ . Other current assets ................... . Property, plant and equipment ........... . REQUIRED $21,000 9,000 16,000 5,500 12,200 (15,300) 1,500 40,000 Other long-term assets ............ $17,500 Cash flow from financing activities . . . 1,300 Current liabilities. . . . . . . . . . . . . . . . . 22,000 Long-term liabilities......... . ..... 18,250 Intangible assets. . . . . . . . . . . . . . . . . 9,500 Common stock ............ . ..... 51,000 Retained earnings . . . . . . . . . . . . . . . ? Prepare a classified balance sheet as of June 30 and statement of cash flows for the current year.arrow_forward
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- Present below are the balance sheet of the assets and liabilities of High and Dry Delivery service as of Sept. 30, 19x2. Also included are the revenue and expense figure of the business for September. Delivery exp………………. 4100 Account Receivable… …1900 Account Payable………….1750 High and Dry Capital……? Salary Expense …………….2000 Delivery Equipment………15500 Supplies…………………………600 Note Payable…………………..6000 Rent Expense…………………..500 Cash…................................750 Required 1. What type of business organization is high and dry delivery service? How can you tell? 2. Prepared the balance sheet of high and dry delivery service as of September 10, 19x2arrow_forwardOn May 1, Donovan Company reported the following account balances:Current assets . . . . . . . . . . . . $ 90,000Buildings & equipment (net) . 220,000Total assets . . . . . . . . . . . .. . $310,000Liabilities . . . . . . . . . . . . . . . . $ 60,000Common stock . . . . . . . . . . . . . 150,000Retained earnings . . . . . . . . . 100,000Total liabilities and equities . $310,000On May 1, Beasley paid $400,000 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $15,000 in accounts payable for legal and accounting fees.Beasley also agreed to pay $75,000 to the former owners of Donovan contingent on meeting certain revenue goals during the following year. Beasley estimated the present value of its probability adjusted expected payment for the contingency at $20,000. In determining its offer, Beasley noted the following:∙ Donovan holds a building with a fair value…arrow_forwardOn May 1, Donovan Company reported the following account balances:Current assets . . . . . . . . . . . . $ 90,000Buildings & equipment (net) . 220,000Total assets . . . . . . . . . . . .. . $310,000Liabilities . . . . . . . . . . . . . . . . $ 60,000Common stock . . . . . . . . . . . . . 150,000Retained earnings . . . . . . . . . 100,000Total liabilities and equities . $310,000On May 1, Beasley paid $400,000 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $15,000 in accounts payable for legal and accounting fees.Beasley also agreed to pay $75,000 to the former owners of Donovan contingent on meeting certain revenue goals during the following year. Beasley estimated the present value of its probability adjusted expected payment for the contingency at $20,000. In determining its offer, Beasley noted the following:∙ Donovan holds a building with a fair value…arrow_forward
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