Acc 2203 Assignments Wiley

Assignment 1:

Brief Exercise 1-1Match each of the following forms of business organization with a set of characteristics: sole proprietorship, partnership, corporation.(a)Shared control, tax advantages, increased skills and resources.

(b)Simple to set up and maintains control with owner.

(c)Easier to transfer ownership and raise funds, no personal liability.

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Brief Exercise 1-8Use the basic accounting equation to answer these questions.

(a) The liabilities of Jantz Company are $93,040and the stockholders equity is $252,500. What is the amount of Jantz Companys total assets?Total assets$

(b) The total assets of Foley Company are $175,200and its stockholders equity is $89,600. What is the amount of its total liabilities?Total liabilities$

(c) The total assets of Sundberg Co. are $888,500and its liabilities are equal to one-fourth of its total assets. What is the amount of Sundberg Co.s stockholders equity?Stockholders equity$

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Exercise 1-5Suppose the following information was taken from the 2014 financial statements of pharmaceutical giantMerck and Co.(All dollar amounts are in millions.)Retained earnings, January 1, 2014$47,930.8

Cost of goods sold8,546.8

Selling and administrative expenses8,284.0

Dividends3,059.4

Sales revenue37,709

Research and development expense5,258

Income tax expense2,428.4

After analyzing the data, prepare an income statement for the year ending December 31, 2014.(Enter amounts in millions upto 1 decimal place, e.g. 45.5 million.)MERCK AND CO.Income StatementFor the Year Ended December 31, 2014(in millions)

$

$

$

SHOW LIST OF ACCOUNTS

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After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2014.(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 StatementFor the Year Ended December 31, 2014(in millions)

$

:

:

$


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Exercise 1-8The following items and amounts were taken from Motte Inc.s 2014 income statement and balance sheet.

In each case, identify on the item is an asset, liability, stockholders' equity, revenue, or expense item.Cash$85,929

Retained earnings123,640

Cost of goods sold437,528

Salaries and wages expense114,689

Prepaid insurance8,088

Inventory64,121

Accounts receivable90,426

Sales revenue583,427

Notes payable6,443

Accounts payable58,244

Service revenue5,410

Interest expense1,786

Prepare an income statement for Motte Inc. for the year ended December 31, 2014.MOTTE INC.Income StatementFor the Year Ended December 31, 2014

$

$

$


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Exercise 1-9Here are incomplete financial statements for Riedy, Inc. Calculate the missing amounts.REIDY, INC.Balance Sheet

Assets

Cash$12,650

Inventory15,650

Buildings39,350

Total assets$67,650

Liabilities and Stockholders' Equity

Liabilities

Accounts payable$5,070

Stockholders' Equity

Common stock(a)

Retained earnings(b)

Total liabilities and stockholders' equity$67,650

RIEDY, INC.Income Statement

Revenues$84,800

Cost of goods sold(c)

Salaries and wages expense10,330

Net Income$(d)

RIEDY, INC.Retained Earnings Statement

Beginning retained earnings$17,650

Add: Net income(e)

Less: Dividends4,830

Ending retained earnings$32,650

SHOW SOLUTION

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Assignment 2:

Brief Exercise 2-2A list of financial statement items for Morales Company includes the following: accounts receivable $16,356; prepaid insurance $3,038; cash $12,150; supplies $4,440; and debt investments (short-term) $9,580.

Prepare the current assets section of the balance sheet listing the items in the proper sequence.(List current assets in order of liquidity.)MORALES COMPANYPartial Balance Sheet

$

$


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Brief Exercise 2-5These selected condensed data are taken from a recent balance sheet ofBob Evans Farms(in millions of dollars).Cash$29.3

Accounts receivable20.5

Inventory28.7

Other current assets24.0

Total current assets$102.5

Total current liabilities$201.2

Compute working capital and the current ratio.(If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000). Round Current Ratio to 2 decimal places, e.g. 0.78 : 1.)Working capital (in millions)$

Current ratio:1

SHOW SOLUTION

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Exercise 2-1Classify each of the following financial statement items taken from Mordica Corporations balance sheet.Accounts payable

Accounts receivable

Accumulated depreciationequipment

Buildings

Cash

Interest payable

Goodwill

Income taxes payable

Inventory

Stock investments (to be sold in 7 months)

Land (in use)

Mortgage payable

Supplies

Equipment

Prepaid rent

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Exercise 2-3Suppose the following items were taken from the December 31, 2014, assets section of theBoeing Companybalance sheet. (All dollars are in millions.)Inventory$16,295Patents$13,035

Notes receivabledue after December 31, 20154,784Buildings21,582

Notes receivabledue before December 31, 2015370Cash9,199

Accumulated depreciationbuildings12,312Accounts receivable5,597

Debt investments (short-term)2,243

Prepare the assets section of a classified balance sheet.(List the current assets in order of liquidity.)THE BOEING COMPANYPartial Balance SheetDecember 31, 2014(in millions)

Assets

$

$

:

$


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Exercise 2-6Suppose the following items were taken from the 2014 financial statements ofTexas Instruments, Inc.(All dollars are in millions.)Common stock$2,065Accumulated depreciationequipment$4,086

Prepaid rent159Accounts payable1,519

Equipment6,276Patents2,260

Stock investments (long-term)644Notes payable (long-term)820

Debt investments (short-term)1,746Retained earnings6,894

Income taxes payable177Accounts receivable1,957

Cash1,449Inventory1,070

Prepare a classified balance sheet in good form as of December 31, 2014.(List current assets in order of liquidity.)TEXAS INSTRUMENTS, INC.Balance SheetDecember 31, 2014(in millions)

Assets

$

$

:

$

Liabilities and Stockholders' Equity

$

$

$


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Assignment 3:

Step 1: Analyze each transaction in terms of its effect on the accounts.In this first step, you are gathering the transactions to analyze. These transactions can come from a source document such as a sales slip, check or bill.

Step 2: Enter the transaction information in a journalIn step 2, you are entering the analyzed information in a journal.

Step 3: Transfer the journal information to the appropriate accounts in the ledger.In the last step, step 3, you are transferring the journal entries into their designated accounts in the ledger.

Assignment 4:

360x8=2880460x10=4600560x11=6160Total=13640Unit total: 360+460+560=1380Average unit cost: 13640/1380=9.884

Cost of ending inventory: 9.884x260=2570 rounded

230x6=1380330x7=2310270x8=2160Total=5850

300x8=2400

230+330+270=830830-300=530230x6=1380300x8=2400total=3780

Acc 2203 Assignments Wiley

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