question 1
The balance sheet items for F .B (Arranged in Alphabeticalorder) were as follows at August 1, 2014. find RetainedEarnings.
Accounts payable $16,200.00
Accounts Receivables $11,260.00
Building $84,000.00
Capital Stock $80,000.00
Cash $6,940.00
Equipment and Fixtures $44,500.00
Land $67,000.00
Notes Payable $74,900.00
Salaries Payable $8,900.00
Supplies $7,000.00
During the next two days, the following transactionsoccurred:
Aug. 2âÂÂŚ. Additional capital stock was sold for $25,000. Theaccounts payable were paid in full. (No payment was made on notespayable or salaries payable)
Aug. 3 âÂÂŚEquipment was purchased at a cost of $7,200 to be paidwithin 10 days. Supplies were purchased for $1,250 cash from arestaurant supply center that was going out of business. Thesesupplies would have cost $1,890 if purchased through normalchannels.
Prepare a balance sheet at August 1, 2015
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question 2
Prepare a balance sheet at August 3, 2015, and a Statement ofcash Flows for August 1 â 3. Classify the payment of accountpayable and the purchase of supplies as operating activities.
Assume the notes payable do not come due for several years, isFranklin Bakery in a stronger financial position on August 1 or onAugust 3? Explain briefly.
The following list of Balance sheet items are in random orderfor Alexander Farms, Inc., at September 30, 2015:
Land $490,000.00
Fences and Gates $33,570.00
Barns and Sheds $78,300.00
Irrigation System $20,125.00
Notes Payable $330,000.00
Cash $16,710.00
Accounts Receivables $22,365.00
Lives stock $120,780.00 Citrus Trees $76,650.00
Farm Machinery $42,970.00
Account payable $77,095.00
Retained Earnings ?
Property taxes Payable $9,135.00
Wages payable $5,820.00
Capital Stock $290,000.00
Prepare a balance sheet by using these items and computing theamount for retained earnings.
b. Assume that on September 30, immediately after this balancesheet was prepared, a tornado completely destroyed one of thebarns. This barn had a cost of $14,000 and was not insured againstthis type of disaster. Explain what changes would be required inyour September 30 balance sheet to reflect the loss of thisbarn.
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