Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

PROBLEM A:

Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011.  Previous period’s information were as follows: net receivables, $290,000 and inventory, $82,000.  Total revenues were $350,000 for 2010, 360,000 for 2009, and 295,000 for 2008.

Requirements:

1) Prepare the income statement, statement of retained earnings, and balance sheet.

2) find out the following ratios: current ratio, quick ratio, debt ratio, accounts receivable turnover, and inventory turnover. Briefly describe your answers.

3) find out the vertical analysis for total current assets.

4) find out the horizontal analysis on total revenues from 2008 thru 2011.

1223_horizontal analysis.jpg

PROBLEM B:

ABC Corporation accountants have assembled the following data for the year ended December 31, 2007.

REQUIRED:

Prepare ABC Corporation’s statement of cash flows using the indirect method.  Include an accompanying schedule of noncash investing and financing activities.

                                                  12/31/07       12/31/06
Current Accounts:
Current assets:

   Cash and cash equivalents            $85,000        $22,000
   Accounts receivable                     69,200          64,200
   Inventories                                 80,000          83,000

Current liabilities:       

    Accounts payable                       $57,800        $55,800
    Income tax payable                     14,700          16,700

Transaction data for 2007:

Net income                                     $  57,000               Purchase of treasury stock         $14,000
Issuance of common stock for cash    41,000                   Loss on sale of equipment          11,000
Depreciation expense                       21,000                   Payment of cash dividends         18,000   
Purchase of building                         125,000                 Issuance of long-term note       
Retirement of bonds payable by                                     payable to borrow cash              34,000
Issuing common stock                      65,000                   Sale of equipment                     58,000

 PROBLEM C:

At the beginning of the current year, MegaSounds opened a music store that sells compact disks. At the end of the year, a physical inventory count revealed that 2,500 of those disks are on hand.

969_physical inventory count.jpg

Required:

1) find out the total cost for each purchase date.

2) find out the ending inventory using (a) FIFO, (b) LIFO, and Average Cost methods.

PROBLEM D: Machinery purchased on January 1, 2011:

Cost of machinery                  250,000
Estimated residual value          10,000
Estimated useful life:
    Years                                6 years
    Units of production              200,000 machine hours

Required:

find out depreciation at each year end that applies:

1) Straight-line method.

2) Units of production method.

Assumption: Machinery machine hours on the 1st year, 66,000; 2nd  year, 60,000; 3rd year, 38,000; 4th year, 22,000; 5th year, 8,000; and 6th year, 6,000

3) Double-declining method.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91353

Have any Question? 


Related Questions in Accounting Basics

The following data relate to the operations of shilow

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31:        Cash $8,000        Accounts receivable $20,000        Inventory $36,000      ...

Review the short list of account balances from data below

Review the short list of account balances from data below. From the account balances, generate an income statement, a statement of owner's equity and a balance sheet for a hypothetical small business. The adjusted trial ...

1 the prices of financial assets are based on the expected

1. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. A. True B. False 2. By using different discount rates, the market allocates capital to companies ...

On december 31 2017 buffalo company signed a 1137500 note

On December 31, 2017, Buffalo Company signed a $1,137,500 note to Carla Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Un ...

Choose any one of the following topic and express your

Choose any one of the following topic and express your views on the same: Which areas of Agriculture, Food and Animal feed would you focus for syndicated research and why? OR What would it really take to feed the growing ...

Exercise 1north company has completed all of its operating

Exercise 1 North Company has completed all of its operating budgets. The sales budget for the year shows 50,120 units and total sales of $2,128,200. The total unit cost of making one unit of sales is $22. Selling and adm ...

Brief exercise 17-3carow corporation purchased as a

Brief Exercise 17-3 Carow Corporation purchased, as a held-to-maturity investment, $70,500 of the 10%, 7-year bonds of Harrison, Inc. for $77,947, which provides a 8% return. The bonds pay interest semiannually. Prepare ...

Excel spreadsheet and 1-2 pagesconsider the following

Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid ...

Problem 1conceptual leasing bought a grader for 600000 and

Problem 1 "Conceptual Leasing bought a grader for $600,000 and the leased it back to Parole Inc. on January 1, 2011. The description of the lease follows: • Quarterly Rent Payments=$34,000 • Leaser term= 4 years (16 quar ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro