Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 5, Problem 4SE
To determine
Prepare a classified a
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Using the following accounts, prepare a classified balance sheet at the year, December 31, 2020: Accounts Payable, P80,000; Accounts Receivable, P110,000; Accumulated Depreciation – Equipment, P70,000; Cash, P20,000; Owner’s Investment, P100,000; Equipment, P300,000; Franchise, P20,000; Investments (long term), P50,000; Merchandise Inventory, P60,000; Notes Payable (long-term), P40,000; Owner’s Capital, P?; Wages Payable, P10,000. Assume that this is the entity’s first year of operations.
Required Information
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of ACME Fireworks includes the following sccount balances:
Accounts
Debit
Credit
$ 27,100
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Equipnent
Accumulated Depreciation
Accounts Payable
Notes Payable (6%, due April 1, 2822)
5e, 200
$ 6,200
22, B00
66, 800
25, e00
3,5ee
30,5ee
70, e00
55,e00
25,100
Common Stock
Retained Earnings
Totals
$190,300
$198,300
During January 2021, the following transactions occur:
January 2 Sold gift cards totaling $12,e0e. The cards are redeenable for merchandise within one year of the purchase
date.
January 6 Purchase additional inventory on account, $167,88e.
January 15 Firework sales for the first half of the month total $155,e0e. All of these sales are on account. The cost
of the units sold is $83,88e.
January 23 Receive $127,480 from custoners on accounts receivable.
January 25 Pay $11e,eee to…
Current Assets
Dorothy Corporation had the following accounts in its year-end adjusted trial balance: Inventories, $23,800; Accounts Receivable, $7,000; Accounts
Payable, $7,200; Prepaid Rent, $2,400; Marketable Securities, $3,000; Allowance for Doubtful Accounts, $1,100; and Cash, $1,200.
Prepare the current assets section of Dorothy's year-end balance sheet.
Current Assets
Cash
Marketable securities
Accounts receivable
Less: Allowance for doubtful accounts
Inventories
Prepaid rent
Total current assets
Dorothy Corporation
Partial Balance Sheet
Feedback
7,000 ✓
1,100✔
1,200
3,000 ✓
5,900
23,800
2,400 ✓
Chapter 5 Solutions
Principles of Accounting
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 1SECh. 5 - Prob. 2SECh. 5 - Tell whether each of the following accounts is a...
Ch. 5 - Prob. 4SECh. 5 - Prob. 5SECh. 5 - Prob. 6SECh. 5 - Prob. 7SECh. 5 - The lettered items that follow represent a...Ch. 5 - Each of the statements that follow violates one or...Ch. 5 - The lettered items that follow represent a...Ch. 5 - Prob. 4EACh. 5 - Prob. 5EACh. 5 - Prob. 6EACh. 5 - Prob. 7EACh. 5 - Prob. 8EACh. 5 - Prob. 1PCh. 5 - The information that follows is from Jasons...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5APCh. 5 - The information that follows is from Matts...Ch. 5 - Prob. 7APCh. 5 - The information that follows is from Rodriguezs...Ch. 5 - Prob. 1CCh. 5 - Prob. 2CCh. 5 - Prob. 3CCh. 5 - Prob. 4CCh. 5 - Prob. 5C
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