Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 7PEB
To determine
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Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2
Mahomes Co. reported the following data at the end of its first year of operations on December 31.
Cash
$ 9,000
10,000
Accounts receivable
Equipment
12,000
Land
43,000
Accounts payable
6,000
Common stock
30,000
Dividends
25,000
Net income
63,000
(a) Prepare its year-end statement of retained earnings.
(b) Prepare its year-end balance sheet, using retained earnings calculated in part a.
udCountimIg 3y3tem.)
Feb 01
Take $4,000 cash out of Big Bank to pay for February's warehouse rent.
Sale of inventory to a customer – selling price $62,000 – cost of inventory sold
$16,000 – customer paid cash which was deposited in Big Bank.
Feb 04
Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned.
Sale of inventory to a customer – selling price $88,000 – cost of inventory sold
$22,000 – customer will pay in the future.
Feb 15
Feb 18
Sale of inventory to a customer – selling price $110,000 – cost of inventory sold
$28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer
will pay for the remaining amount of the sale in 30 days.
Feb 22
Purchase additional inventory - pay $17,000 cash out of Big Bank for the inventory.
Feb 27
Take $23,000 cash out of Little Bank to pay employees for wages they have earned.
Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to
Big Bank for February – interest will…
Return on Total Assets
A company reports the following income statement and balance sheet information for the current year:
Net income
$678,470
Interest expense
119,730
Average total assets
6,140,000
Determine the return on total assets. If required, round the answer to one decimal place.
%
Chapter 13 Solutions
Financial Accounting
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - A stockbroker advises a client to buy preferred...Ch. 13 - A corporation with both preferred stock and common...Ch. 13 - An owner of 2,500 shares of Simmons Company common...Ch. 13 - Prob. 5DQCh. 13 - What is the primary purpose of a stock split?Ch. 13 - A corporation reacquires 60,000 shares of its own...Ch. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Prob. 10DQ
Ch. 13 - Dividends per share Reinhardt Furniture Company...Ch. 13 - Prob. 1PEBCh. 13 - Entries for issuing stock On May 23, Stoltz Realty...Ch. 13 - Entries for issuing stock On January 22, Zentric...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Pro-Builders...Ch. 13 - Entries for stock dividends Antique Buggy...Ch. 13 - Prob. 5PEACh. 13 - Prob. 5PEBCh. 13 - Prob. 6PEACh. 13 - Prob. 6PEBCh. 13 - Prob. 7PEACh. 13 - Prob. 7PEBCh. 13 - Prob. 8PEACh. 13 - Prob. 8PEBCh. 13 - Dividends per share Imaging Inc., a developer of...Ch. 13 - Dividends per share Lightfoot Inc., a software...Ch. 13 - Entries for issuing par stock On October 31,...Ch. 13 - Entries for issuing no-par stock On February 12,...Ch. 13 - Issuing stock for assets other than cash On April...Ch. 13 - Prob. 6ECh. 13 - Issuing stock Willow Creek Nursery, with an...Ch. 13 - Issuing stock Work Place Products Inc., a...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Senior Life Co. is an...Ch. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Selected dividend transactions, stock split...Ch. 13 - Treasury stock transactions Lava Lake Inc. bottles...Ch. 13 - Treasury stock transactions Lawn Spray Inc....Ch. 13 - Treasury stock transactions Biscayne Bay Water...Ch. 13 - Reporting paid-in capital The following accounts...Ch. 13 - Stockholders Equity section of balance sheet The...Ch. 13 - Stockholders Equity section of balance sheet...Ch. 13 - Retained earnings statement Sumter Pumps...Ch. 13 - Stockholders Equity section of balance sheet List...Ch. 13 - Prob. 22ECh. 13 - EPS Junkyard Arts, Inc., had earnings of 316,000...Ch. 13 - EPS Pacific Gas and Electric Company is a large...Ch. 13 - EPS Caterpillar Inc. and Deere Company are two...Ch. 13 - Dividends on preferred and common stock Pecan...Ch. 13 - Stock transactions for corporate expansion On...Ch. 13 - Selected stock transactions The following selected...Ch. 13 - Prob. 4PACh. 13 - Entries for selected corporate transactions...Ch. 13 - Dividends on preferred and common stock Yosemite...Ch. 13 - Prob. 2PBCh. 13 - Selected stock transactions Diamondback Welding ...Ch. 13 - Entries for selected corporate transactions Nav-Go...Ch. 13 - Prob. 5PBCh. 13 - Ethics in Action Tommy Gunn is a division manager...Ch. 13 - Prob. 2CPCh. 13 - Prob. 4CPCh. 13 - Prob. 5CPCh. 13 - Issuing stock Epstein Engineering Inc. began...
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