Acc 2203 Assignments Wiley

Assignment 1:

Brief Exercise 1-1 Match each of the following f orms of business organization with a set of characteristics: sole proprietorship, partnership, corporation.

(a)

(b)

(c)

Partnership

Sole proprietorship

Corporation

Shared control, tax advantages, increased skills and resources. Simple to set up and maintains control with owner. asier to transfer ownership and raise funds, no personal liabilit!.

LINK TO TEXT

Brief Exercise 1-8 "se the basic accounting e#uation to answer these #uestions. (a) $he liabilities of %antz &ompan! are ',*+* and the stockholders e#uit! is '--,**. /hat is the amount of %antz &ompan!s total assets0 $otal assets

'

345,540

(b) $he total assets of 1ole! &ompan! are '23,-** and its stockholders e#uit! is '4,5**. /hat is the amount of its total liabilities0 $otal $otal liabilities

'

85,600

(c) $he total assets of Sundberg &o. are '444,** and its liabilities are e#ual to one6 fourth of its total assets. /hat is the amount of Sundberg &o.s stockholders e#uit!0

Stockholders e#uit!

'

666,375

SHOW SOLUTION

LINK TO TEXT

Exercise 1-5 Suppose the following information was taken f rom the -*2+ financial statements of pharmaceutical giant Merck and C! (7ll C! (7ll dollar amounts are in millions.) 8etained earnings, %anuar! 2, -*2+

'+3,*.4

&ost of goods sold

4,+5.4

Selling and administrative expenses

4,-4+.*

9ividends

,*.+

Sales revenue 8esearch and development expense ncome tax expense

3,3*  , -4 -,+-4.+

7fter anal!zing the data, prepare an income statement for the !ear ending 9ecember 2, -*2+. (Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.)

MERCK AND CO. Income Statement For the Year Ended December 1! "#1$ %in mi&&ions' Revenues Sales Revenu

'

37,709

Expenses Cost of Goos

$

8,546!8

Sellin" an #

8,$84!0

Resear%h an

5,$58

&n%o'e (ax Ex

$,4$8!4

(otal Expens es

$4,5)7!$

*et &n%o'e + -oss.

'

)3,)9)!8

SHOW LIST O" #CCOUNTS

LINK TO TEXT

7fter anal!zing the data, prepare a retained earnings statement for the !ear ending 9ecember 2, -*2+. (List items that increase retained earnings first. Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.) MERCK AND CO. Retained Earnings Statement For the Year Ended December 1! "#1$ %in mi&&ions' Retaine Earnin"s, /anuar0 ) #

:

$


47,930!8 )3,)9)!8 6),)$$!6

-ess

:

1iviens

Retaine Earnin"s, 1e%e'2er 3)

3,059!4

$

58,063!$


LINK TO TEXT

&op!right ; -***6-*2+ b! %ohn /ile! < Sons, nc. or related companies. 7ll rights reserved.

&hange =alues

8eport &ontent rror

Exercise 1-8 $he following items and amounts were taken from Motte nc.s -*2+ income statement and balance sheet. n each case, identif! on the item is an asset, liabilit!, stockholders> e#uit!, revenue, or expense item. #ss et

&ash

Sto%holers4 E5uit0

8etained earnings

2-,5+*

Expense

&ost of goods sold

+3,-4

Expense

Salaries and wages expense

22+,54

#ss et

?repaid insurance

#ss et

nventor!

5+,2-2

#ss et

7ccounts receivable

*,+-5

Revenue

Sales revenue

4,+-3

-ia2ilit0

@otes pa!able

5,++

-ia2ilit0

7ccounts pa!able

Revenue

Service revenue

,+2*

Expense

nterest expense

2,345

' 4,-

4,*44

4,-++

?repare an income statement for Motte nc. for the !ear ended 9ecember 2, -*2+.

MO((E INC. Income Statement For the Year Ended December 1! "#1$ Revenues Sales Revenu

$

Servi%e Reve

583,4$7 5,4)0

(otal Revenues

'

588,837

Expenses Cost of Goos

437,5$8

Salaries an

))4,689

&nterest Expen

),786

(otal Expens es

554,003


'

34,834


LINK TO TEXT

LINK TO $I%EO


&hange =alues


Exercise 1-& Aere are incomplete financial statements for 8ied!, nc. &alculate the missing amounts. REIDY! INC. )a&ance Sheet Assets Cash

' 2-,5*

Inventory

2,5*

Buildings

,*

Total assets

'53,5* *iabi&ities and Stoc+ho&ders, E-it/

Liabilities Accounts payable

' ,*3*

Stockholders' Euity Co!!on stock

$9,930

(a)

"etained earnings

3$,650

(b)

Total liabilities and stockholders' euity

'53,5*

RIEDY! INC. Income Statement "evenues

'4+,4** 54,640

Cost o# goods sold Salaries and ages e%pense

(c)

2*,*

&et Inco!e

'

)9,830

(d)

RIEDY! INC. Retained Earnings Statement Beginning retained earnings Add: &et inco!e Less: ividends Ending retained earnings

SHOW SOLUTION

LINK TO TEXT

'23,5* )9,830

(e) +,4* '-,5*


&hange =alues


Assignment ":

Brief Exercise '-' 7 list of financial statement items for Morales &ompan! includes the following: accounts receivable '25,5B prepaid insurance ',*4B cash '2-,2*B supplies '+,++*B and debt investments (short6term) ',4*. ?repare the current assets section of the balance sheet listing the items in the proper se#uence. (List current assets in order of liquidity.) MORA*ES COM0ANY 0artia& )a&ance Sheet Current #s sets Cash

'

)$,)50

1e2t invest'e

9,580

#%% ounts Re%

)6,356

Supplies

4,440

Prepai &nsur a

3,038

(otal Current #s sets


LINK TO TEXT

'

45,564


&hange =alues


Brief Exercise '-5 $hese selected condensed data are taken from a recent balance sheet of B( E)ans "ar*s(in millions of dollars). &ash

' -.

7ccounts receivable

-*.

nventor!

-4.3

Cther current assets

-+.*

$otal current assets

'2*-.

$otal current liabilities

'-*2.-

&ompute working capital and the current ratio. (If answer is negatie enter it with a negatie sign preceding the num!er e.g. "15,### or in parentheses e.g. (15,###). $ound %urrent $atio to & decimal places, e.g. #.'  1.) /orking capital (in millions) &urrent ratio

SHOW SOLUTION

LINK TO TEXT

'

98!7. 0!5)

:2



Exercise '-1 &lassif! each of the following f inancial statement items taken from Mordica &orporations balance sheet. Current lia2ilities

7ccounts pa!able

Current ass ets

7ccounts receivable

Propert0, plant, an e5uip'ent

7ccumulated depreciationDe#uipment


Euildings

Current ass ets

&ash

Current lia2ilities

nterest pa!able

&ntan"i2le assets

Foodwill

Current lia2ilities

ncome taxes pa!able

Current ass ets

nventor!

Current ass ets

Stock investments (to be sold in 3 months)


Gand (in use)

-on"7ter' lia2ilities

Mortgage pa!able

Current ass ets

Supplies


#uipment

Current ass ets

?repaid rent

LINK TO TEXT



Exercise '-+ Suppose the following items were taken from the 9ecember 2, -*2+, assets section of the Bein, C*an. balance sheet. (7ll dollars are in millions.) nventor!

'25,-

@otes receivableDdue after 9ecember 2, -*2

+,34+

@otes receivableDdue before 9ecember 2, -*2 7ccumulated depreciationDbuildings

3* 2-,2-

?atents Euildings &ash 7ccounts receivable 9ebt investments (short6term)

?repare the assets section of a classified balance sheet. (List the current assets in order of liquidity.) (E )OEIN2 COM0ANY 0artia& )a&ance Sheet December 1! "#1$ %in mi&&ions' Assets Current #ssets Cash

'

9,)99

1e2t invest'e

$,$43

#% %ounts Re%

5,597

*otes Re%eiva

370

&nventor

)6,$95

(otal Current #ssets

'

33,704

-on"ter' &nvest'ents *otes Re%eiva

4,784

Propert, Plant an Euip'ent uilin"s

$),58$

-ess

:

#%% u'ulate

)$,3)$

9,$70

&ntan"i2le #ssets Patents

)3,035

(otal #ss ets

'

60,793


LINK TO TEXT


&hange =alues


Exercise '-/ Suppose the following items were taken from the -*2+ financial statements of Texas Ins0r*en0s2 Inc!(7ll dollars are in millions.) &ommon stock

'-,*5

?repaid rent

2

#uipment

5,-35

Stock investments (long6term)

5++

9ebt investments (short6term)

2,3+5

ncome taxes pa!able &ash

233 2,++

7ccumulated depreciationDe#uipment

'+,*45

7ccounts pa!able

2,2

?atents

-,-5*

@otes pa!able (long6term)

4-*

8etained earnings

5,4+

7ccounts receivable

2,3

nventor!

2,*3*

?repare a classified balance sheet in good form as of 9ecember 2, -*2+. (List current assets in order of liquidity.) (E3AS INS(R4MEN(S! INC.

)a&ance Sheet December 1! "#1$ %in mi&&ions' Assets Current #ss ets

'

Cash

),449

1e2t invest'e

),746

#% %ounts Re%

),957

&nventor

),070

Prepai Rent

)59

'

(otal Current #s sets

6,38)

-on"ter' &nvest'ents Sto% &nvest'

644

Propert, Plant an Euip'ent Euip'ent -ess

6,$76

:

#% %u'ulate

4,086

$,)90

&ntan"i2le #ssets Patents

$,$60

'

(otal #ss ets

)),475

*iabi&ities and Stoc+ho&ders, E-it/ Current -ia2ilities

#% %ounts Pa

&n%o'e (axes

(otal Current -ia2ilities

' ),5)9 )77

' ),696

-on"ter' -ia2ilities *otes Paa2le

8$0

(otal -ia2ilities

$,5)6

Sto%holers Euit Co''on Sto%

$,065

Retaine Earn

6,894

(otal Sto%holers Euit

8,959

'

(otal -ia2ilities an Sto%holers Euit

)),475


LINK TO TEXT


&hange =alues

Assignment :


Step (: Analy)e each transaction in ter!s o# its e*ect on the accounts+ In this ,rst step- you are gathering the transactions to analy)e+ These transactions can co!e #ro! a source docu!ent such as a sales slipcheck or bill+ Step .: Enter the transaction in#or!ation in a /ournal In step .- you are entering the analy)ed in#or!ation in a /ournal+ Step 0: Trans#er the /ournal in#or!ation to the appropriate accounts in the ledger+ In the last step- step 0- you are trans#erring the /ournal entries into their designated accounts in the ledger+

Assignment $:

Acc 2203 Assignments Wiley

Recommend Documents