Problem 1.1 --- Given the following transactions A) record the transactions in Excel & B) use the ending balances to prepare an income statement, statement of retained earnings, and balance sheet.
11/4 Quincy Jones invested $80,000 into Music Corp (MC) in exchange for common stock.
11/5 MC paid $6,000 for November rent.
11/6 MC completed $20,000 of services on account (credit) for Ghost Records.
11/7 MC purchased $40,000 of recording equipment on account (credit).
11/12 MC provided services to Capitol Record Co. and received $38,000.
11/13 MC paid $3,000 to purchase supplies from Music Barn.
11/14 MC received $20,000 from Ghost Records for services performed 11/6.
11/15 MC paid $9,000 wages to backup artists.
11/22 MC received a $4,500 bill from Rolling Stone magazine for an ad in this month's magazine.
11/23 MC paid $40,000 for the recording equipment purchased on account 11/7.
11/24 MC paid $325 for this month's utilities.
11/25 MC received $30,000 for services provided EMC Record Company.
11/28 MC received a $5,500 invoice for security services received in November.
11/29 MC paid $10,000 in dividends.
Problem 1.2 - Given the following transactions A) record the transactions in Excel & B) use the ending balances to prepare an income statement, statement of retained earnings, and balance sheet.
3/1 Kofi Annan contributed $20,000 and office equipment worth $5,000 to start Consulting Corp.
3/2 Consulting Corp. (CC) Paid $1,100 for March rent.
3/5 CC provided $5,500 of services to Customer Co. on account.
3/8 CC purchased $270 of office supplies on account.
3/10 CC received $5,500 from Customer Co. for services provided 3/5.
3/11 CC received a $105 invoice for March cell phone service.
3/12 CC paid $2,500 to purchase office equipment.
3/13 CC provided services and received $1,800.
3/15 CC paid $1,800 to the company secretary.
3/16 CC paid $270 for supplies purchased on 3/8.
3/19 CC paid dividends of $2,200.
3/20 CC paid March utilities of $120.
3/21 CC paid $200 insurance for March.
Problem 1.3 - A) How much did each company have in total assets for each of the last 2 years?
B) What is the return on assets for each company in the current year?
C) How much were total expenses for each company in 2010?
D) If the industry average return on assets is 8% how do Walmart and Target compare?
|
Walmart (in millions $)
|
Target (in millions $)_
|
| |
Year Ending 1/31/10
|
Year Ending 1/31/09
|
Year Ending 1/31/10
|
Year Ending 1/31/09
|
Net Income
|
14,335
|
13,400
|
2,488
|
2,214
|
| Total Liabilities |
99,957
|
98,144
|
29,186
|
30,394
|
| Total Equity |
70,749
|
65,285
|
15,347
|
13,712
|
| Revenues |
408,214
|
404,374
|
65,357
|
64,948
|
Attachment:- Problems-.rar