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The following balance sheet data are reported for BrownleeCatering at September 30, 2015

Accounts receivable ... $17,000

Notes payable ... $12,000

Equipment ... $34,000

Supplies Inventory ... $9,000

Accounts payable $24,000

Cash ... $10,000

Common Stock ... $27,500

Retained earnings ... ?

Assume that on October 1, 2015, only the two followingtransactions occurred:

October 1 - Purchased additional equipment costing $11,000 ,giving $3,000 cash and signing an $8,000 note payable

Declared and paid a cash dividend of $3,000

__________

a. Prepare Brownlee Catering’s balance sheet at September 30,2015

b. Prepare the company’s balance sheet at the close of thebusiness on October 1, 2015

c. Calculate Brownlee’s current and quick ratios on September 30and October 1 (assume notes payable are non current).

d. The October 1, 2015 transactions have decreased Brownlee’scurrent and quick ratios, reflecting a decline in liquidity.Identify two transactions that would increase the company’sliquidity

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Beverley Smith
Beverley SmithLv2
28 Sep 2019

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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. 2…. 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 …Equipment 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 – 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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Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify).
Account Titles Debit Credit
Cash $ 5
Accounts Receivable 4
Supplies 3
Equipment 6
Accumulated Depreciation $ 0
Software 12
Accumulated Amortization 3
Accounts Payable 7
Notes Payable (long-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Unearned Revenue 0
Common Stock 15
Retained Earnings 5
Service Revenue 0
Supplies Expense 0
Depreciation Expense 0
Salaries and Wages Expense 0
Amortization Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $ 30 $ 30
Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $28 cash on July 1, 2015, signing a six-month note payable.
2. Purchased equipment for $16 cash on July 1, 2015.
3. Issued additional shares of common stock for $4.
4. Earned revenues for 2015 in the amount of $71, including $8 on credit and $63 received in cash.
5. Recognized salaries and wages expenses for 2015 of $42, paid in cash.
6. Purchased additional equipment, $4 cash.
7. Collected accounts receivable, $7.
8. Paid accounts payable, $10.
9. Purchased on account supplies for future use, $9.
10. Received a $3 cash deposit on work to start January 15, 2016.
Data for adjusting journal entries:
11. Amortization for 2015, $3.
12. Supplies of $5 were counted on December 31, 2015.
13. Depreciation for 2015, $1.
14. Accrued interest on notes payable of $1.
15. Wages earned since the December 24 payroll not yet paid, $2.

Income tax for 2015 was $3 and will be paid in 2016

Prepare balance sheet.

Prepare the closing journal entry.

Post the closing entry and prepare a post-closing trial balance

Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify).
Account Titles Debit Credit
Cash $ 5
Accounts Receivable 4
Supplies 1
Equipment 6
Accumulated Depreciation $ 0
Software 12
Accumulated Amortization 5
Accounts Payable 7
Notes Payable (long-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Tax Payable 0
Unearned Revenue 0
Common Stock 12
Retained Earnings 4
Service Revenue 0
Supplies Expense 0
Depreciation Expense 0
Salaries and Wages Expense 0
Amortization Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $ 28 $ 28
Transactions during 2015 (summarized in thousands of dollars) follow:
1. Borrowed $26 cash on July 1, 2015, signing a six-month note payable.
2. Purchased equipment for $23 cash on July 1, 2015.
3. Issued additional shares of common stock for $6.
4. Earned revenues for 2015 in the amount of $68, including $7 on credit and $61 received in cash.
5. Recognized salaries and wages expenses for 2015 of $40, paid in cash.
6. Purchased additional equipment, $2 cash.
7. Collected accounts receivable, $9.
8. Paid accounts payable, $12.
9. Purchased on account supplies for future use, $8.
10. Received a $5 cash deposit on work to start January 15, 2016.
Data for adjusting journal entries:
11. Amortization for 2015, $5.
12. Supplies of $6 were counted on December 31, 2015.
13. Depreciation for 2015, $3.
14. Accrued interest on notes payable of $1.
15. Wages earned since the December 24 payroll not yet paid, $4.
.

16.Income tax for 2015 was $2 and will be paid in 2016.

Q1 Record journal entries for transactions (1) through (10)

Q2Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry

Q3Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance Q4Record the adjusting journal entries (11) through (16)

Q5Post the adjusting entries from requirement 4 and prepare an adjusted trial balance

Q6Prepare an income statement. and Prepare statement of retained earnings and Prepare balance sheet

Q7Prepare the closing journal entry.

Q8Post the closing entry from requirement 7 and prepare a post-closing trial balance

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