Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 4, Problem 4.3TIF
Communication
Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following
| Asheville Company Balance Sheet For the Year Ended December 31,2018 |
|
| Assets | |
| Land | $100,000 |
| Accounts payable | 10,000 |
| Accounts receivable | 12,500 |
| Cash | 10,000 |
| Common stock | 11 5,000 |
| Total assets | $247,500 |
| Liabilities | |
| Equipment | $125,000 |
| Retained earnings | 120,000 |
| Wages payable | 2,500 |
| Total liabilities | $247,500 |
White a brief memo to Daniel explaining the errors in the Asheville Company balance sheet and the correct presentation for the balance sheet.
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Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Galaxy Corporation.
Galaxy Corporation Balance Sheet
Cash
$656,250
Accounts payable
$1,575,000
Accounts receivable
$2,296,875
Accruals
$984,375
Inventory
$3,609,375
Notes payable
$1,378,125
Total current assets
$6,562,500
Total current liabilities
$3,937,500
Long-term debt
$6,562,500
Total debt
$10,500,000
Common equity
$2,100,000
Net plant and equipment
$10,937,500
Retained earnings
$4,900,000
Total equity
$7,000,000
Total assets
$17,500,000
Total liabilities and equity
$17,500,000
During your interview for an introductory-level analyst position at Galaxy Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet.
Net Working Capital
$__________________________
Current Ratio…
Given the ledger accounts of Devrij Company as of January 31, 2020:
Cash
$26,400
Accounts Payable
$9,000
Supplies
Share Capital-Ordinary 15,600
6,600
Rent Expense
16,800
Accounts Receivable 13,200
Notes Payable
7,200
Service Revenue
31,200
Required:
1.
Compute the total of the debit side of the trial balance. (show your computation).
2.
Compute the total of the credit side of the trial balance. (show your computation)
You have been engaged in your second annual examination of the financial
statements of S Co. The following data were provided to you by the company
accountant:
Cash Receipts:
Collection on sale on account
Cash sales
740,000
100,000
Proceeds of a note payable dated October 1, 2019
and due October 1, 2021, discounted at 18%
30,000
Cash Disbursements:
400,000
Purchase of land and building on April 1, 2019
Full payment of furniture and fixtures purchased
on July 1, 2019
On accounts payable and administrative expenses
Selling expenses
To 518,000
200,000
Of the sales on account, P10,000 was returned because of poor quality and
there was a purchase return of P8,000.
The following data are also available:
December 31, 2018
Accounts Receivable
Merchandise inventory
Accounts payable
Accrued rent expenses
December 31, 2019
200,000
220,000
180,000
40,000
150,000
190,000
230,000
40,000
Of the total purchase price of the Land and Building, 40% is allocated to the
land. Annual depreciation is 5% on…
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Recent fiscal years for several well-known...
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Retained earnings statement Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.4BECh. 4 - Accounting cycle From the following list of steps...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation had the...Ch. 4 - Retained earnings statement Climate Control...Ch. 4 - Retained earnings statement; net loss Selected...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Prob. 4.13EXCh. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries Prior to its closing, Income...Ch. 4 - Closing entries with net income After all revenue...Ch. 4 - Closing entries with net loss Rainbow Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.24EXCh. 4 - Prob. 4.25EXCh. 4 - Prob. 4.26EXCh. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries Lamp...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Prob. 4.3BPRCh. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Continuing Company Analysis- Amazon: Working...Ch. 4 - Under Armour: Current ratio The following year-end...Ch. 4 - Prob. 4.3ADMCh. 4 - Google and Microsoft: Current ratio Google, Inc....Ch. 4 - Prob. 4.1TIFCh. 4 - Communication Your friend, Daniel Nat, recently...
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