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

Assignment- fraud in the accounting information systemfor

Assignment- Fraud in the Accounting Information System For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's acco ...

Question 1on december 31 2014 rayco inc had the following

Question 1 On December 31, 2014, Rayco Inc. had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and out ...

Discussion 1 and 2discussion 1select one of the following

Discussion 1 and 2 Discussion 1 Select one of the following tools: the nine steps in Ackerman and Anderson's roadmap for change, Cummings and Worley's five dimensions of leading and managing change, or the three componen ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

Accounting assignmentcolorado springs company csc is a

Accounting Assignment Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in F ...

Harmon helmets purchased equipment for 62000 cash sold

Harmon Helmets purchased equipment for $62,000 cash, sold equipment costing $36,000 with a book value of $22,000 at a loss, and declared dividends during 2013. No new notes payable were issued during the year. Financial ...

Tf question1under the modified accrual basis of accounting

T/F QUESTION 1 Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that benefit multiple periods. 2 In fund accounting, expenditures may be classified in differ ...

Modern furniture company had finally arrived at the point

Modern Furniture Company had finally arrived at the point where it had a sufficient excess cash flow of $4.8 million to consider paying a dividend. It had 3 million shares of stock outstanding and was considering paying ...

What went wrongfriends bank is seeking to hire a new teller

What Went Wrong? Friend's Bank is seeking to hire a new teller. Darrell has applied for the position. His application states that five years ago, he was convicted for embezzlement as a teller. In the interview, Darrell r ...

1-15 multiple choice each multiple choice has only one

1-15. Multiple Choice Each multiple choice has only one correct answer. 1. Which of the following aspects of a company could be considered a critical success factor, given the appropriate business environment? A) cutting ...

  • 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