Question 1: Marsh Corporation began operations on January 1, 2014. The following information is available for Marsh Corporation on December 31, 2014.
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Accounts payable
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$ 7,310
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Notes payable
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$ 11,620
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Accounts receivable
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4,310
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Rent expense
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12,310
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Advertising expense
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4,340
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Retained earnings
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?
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Cash
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5,410
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Service revenue
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29,620
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Common stock
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17,310
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Supplies
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4,210
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Dividends
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4,810
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Supplies expense
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1,360
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Equipment
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29,110
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1. Prepare an income statement for Marsh Corporation.
2. Prepare a retained earnings statement for Marsh Corporation.
3. Prepare a balance sheet for Marsh Corporation.
Question 2: The Clear View Golf & Country Club details the following accounts in its financial statements.
(a) Classify each of the following accounts as an asset, liability, stockholders' equity, revenue, or expense item.
(b) Classify each of the following accounts as a financing activity, investing activity, or operating activity.
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(a)
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(b)
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Accounts payable
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Accounts receivable
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Equipment
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Sales revenue
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Service revenue
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Inventory
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Mortgage payable
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Supplies expenses
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Rent expense
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Salaries and wages expense
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Question 3: This information relates to Molina Co. for the year 2014.
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Retained earnings, January 1, 2014
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$76,970
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Advertising expense
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2,068
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Dividends
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6,893
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Rent expense
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11,948
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Service revenue
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66,630
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Utilities expense
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2,757
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Salaries and wages expense
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34,464
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1. After analyzing the data, prepare an income statement for the year ending December 31, 2014.
2. After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2014.
Question 4: Suppose the following information (in thousands of dollars) is available for H.J. Heinz Company-famous for ketchup and other fine food products-for the year ended April 30, 2014.
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Prepaid insurance
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$ 123,014
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Buildings
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$4,083,526
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Land
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76,564
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Cash
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381,503
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Goodwill
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3,977,125
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Accounts receivable
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1,209,466
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Trademarks
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785,856
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Accumulated depreciation-buildings
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2,129,348
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Inventory
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1,255,257
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1. Prepare the assets section of a classified balance sheet.
Question 5: The statement of financial position for Ruiz Company includes the following accounts (in British pounds): Accounts Receivable £12,500; Prepaid Insurance £3,600; Cash £15,400; Supplies £5,200; and Debt Investments (short-term) £6,700. Prepare the current assets section of the statement of financial position, listing the accounts in proper sequence.