Presented below is the balance sheet of Harriet�s Hats as ofDecember 31, 2009, along with some of the transactions thatoccurred during 2010. Harriet's Hats Ltd. Balance Sheet December31, 2009
Assets
Current Assets:
Cash $ 5,000
Accounts Receivable 3,000
Prepaid Rent 500
Inventories 4,000
Total Current Assets $12,500
Property, Plant and Equipment$20,000
Less: Accumulated Dep.(3,500)
Property, Plant and Equipment(net) 16,500
Total Assets $29,000
Liabilities and Owner'sEquity
Current Liabilities:
Accounts Payable $2,500
Accrued Wages 170
Accrued Interest 90
Notes Payable 2,700
Total Current Liabilities $5,460
Common Stock 15,000
Retained Earnings8,540
Total Shareholders� Equity$23,540
Total Liabilities andShareholders� Equity $29,000
Prepare the original and theadjusting journal entries at the end of 2010
1. On September 1, 2010, thecompany issued a short-term note for $3,000 and on the same dateretired the note that was outstanding at the beginning of theperiod. The old note had a 10 percent interest rate, had beenissued on September 1, 2009, and required semi-annual interestpayment on February 28 and August 31. The new note carried an 8percent interest rate with similar payment terms.
2. Rent payments of $1,800 eachwere made on March 1 and September 1. The payments were for rent onoffice building and were prepaid for six months.
3. Sales employees were paid$12,000 in salaries during the year. Records indicate that salariesfor the last week of December amounted to $250 and would be paid atthe end of the first week of January (a two week pay period). 1.Prepare all the journal entries on 12/31/2010 if the firm does notfollow the reversing entries convention for recording interest,rent and salaries. 2. Prepare all the journal entries. includingthe ones on 1/1/2010 and 12/31/2010, if the firm follows thereversing entries convention for recording interest, rent andsalaries.
1. Prepare all the journal entries, including the adjustingentries on 12/31/2010, for recording all the transactions relatedto note, interest on note, rent and salaries during 2010. assumethat the firm does not follow the reversing entries convention
2. Prepare all the journal entries. including the reversingentries on 1/1/2010 and adjusting entries on 12/31/2010, forrecording all the transactions related ot note, interest on note,rent and salaries during 2010. assume that the firm does follow thereversing entries convention and records all cash receipts and cashpayments to a nominal account
Presented below is the balance sheet of Harriet�s Hats as ofDecember 31, 2009, along with some of the transactions thatoccurred during 2010. Harriet's Hats Ltd. Balance Sheet December31, 2009
Assets
Current Assets:
Cash $ 5,000
Accounts Receivable 3,000
Prepaid Rent 500
Inventories 4,000
Total Current Assets $12,500
Property, Plant and Equipment$20,000
Less: Accumulated Dep.(3,500)
Property, Plant and Equipment(net) 16,500
Total Assets $29,000
Liabilities and Owner'sEquity
Current Liabilities:
Accounts Payable $2,500
Accrued Wages 170
Accrued Interest 90
Notes Payable 2,700
Total Current Liabilities $5,460
Common Stock 15,000
Retained Earnings8,540
Total Shareholders� Equity$23,540
Total Liabilities andShareholders� Equity $29,000
Prepare the original and theadjusting journal entries at the end of 2010
1. On September 1, 2010, thecompany issued a short-term note for $3,000 and on the same dateretired the note that was outstanding at the beginning of theperiod. The old note had a 10 percent interest rate, had beenissued on September 1, 2009, and required semi-annual interestpayment on February 28 and August 31. The new note carried an 8percent interest rate with similar payment terms.
2. Rent payments of $1,800 eachwere made on March 1 and September 1. The payments were for rent onoffice building and were prepaid for six months.
3. Sales employees were paid$12,000 in salaries during the year. Records indicate that salariesfor the last week of December amounted to $250 and would be paid atthe end of the first week of January (a two week pay period). 1.Prepare all the journal entries on 12/31/2010 if the firm does notfollow the reversing entries convention for recording interest,rent and salaries. 2. Prepare all the journal entries. includingthe ones on 1/1/2010 and 12/31/2010, if the firm follows thereversing entries convention for recording interest, rent andsalaries.
1. Prepare all the journal entries, including the adjustingentries on 12/31/2010, for recording all the transactions relatedto note, interest on note, rent and salaries during 2010. assumethat the firm does not follow the reversing entries convention
2. Prepare all the journal entries. including the reversingentries on 1/1/2010 and adjusting entries on 12/31/2010, forrecording all the transactions related ot note, interest on note,rent and salaries during 2010. assume that the firm does follow thereversing entries convention and records all cash receipts and cashpayments to a nominal account
Related questions
5) MC Qu. 67 Swinger Corporations comparative ...
Swinger Corporation's comparative balance sheet appears below:
| Ending Balance | Beginning Balance | |
| Assets: | ||
| Current assets: | ||
| Cash and cash equivalents | $47,000 | $31,000 |
| Accounts receivable | 23,000 | 22,000 |
| Inventory | 66,000 | 64,000 |
| Total current assets | 136,000 | 117,000 |
| Property, plant, and equipment | 356,000 | 338,000 |
| Less accumulated depreciation | 184,000 | 161,000 |
| Net property, plant, and equipment | 172,000 | 177,000 |
| Total assets | $308,000 | $294,000 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $17,000 | $16,000 |
| Accrued liabilities | 43,000 | 44,000 |
| Income taxes payable | 63,000 | 61,000 |
| Total current liabilities | 123,000 | 121,000 |
| Bonds payable | 83,000 | 80,000 |
| Total liabilities | 206,000 | 201,000 |
| Stockholders' equity: | ||
| Common stock | 27,000 | 24,000 |
| Retained earnings | 75,000 | 69,000 |
| Total stockholders' equity | 102,000 | 93,000 |
| Total liabilities and stockholders' equity | $308,000 | $294,000 |
The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $10,000. The net cash provided by operating activities is:
A)$36,000
B)$32,000
C)$28,000
D)$34,000
Hocking Corporation's comparative balance sheet appearsbelow:
Ending | Beginning | |
Assets: | ||
Current assets: | ||
Cash and cash equivalents | $62,500 | $29,100 |
Accounts receivable | 25,000 | 30,500 |
Inventory | 68,000 | 65,500 |
Prepaid expenses | 13,000 | 15,500 |
Total current assets | 168,500 | 140,600 |
Property, plant and equipment | 367,000 | 344,000 |
Loss accumulated depreciation | 166,000 | 142,000 |
Net property, plant, and equipment | 201,000 | 202,000 |
Total assets | $369,500 | $342,600 |
Liabilities and Stockholder's Equity: | ||
Current liabilities: | ||
Accounts payable | $17,500 | $13,200 |
Accrued liabilities | 65,500 | 55,000 |
Income taxes payable | 54,500 | 51,200 |
Total current liabilities | 137,500 | 119,400 |
Bonds payable | 83,200 | 85,200 |
Total liabilities | 220,700 | 204,600 |
Stockholder's equity: | ||
Common stock | 31,800 | 30,000 |
Retained earnings | 117,000 | 108,000 |
Total stockholder's equity | 148,800 | 138,000 |
Total liabilities and stockholder's equity | $369,500 | 342,600 |
The company's net income (loss) for the year was $11,000 and itscash dividends were $2,000. It did not sell or retire any property,plant, and equipment during the year. The company uses the indirectmethod to determine the net cash provided by operatingactivities.
The company's net cash provided by operating activities is:
$61,100
$48,800
$58,600
$26,500
