ACCT 2000 Chapter : Acct Chapt 2 Questions
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On December 31, 2016, the accounts inthe ledger of Monroe Entertainment Co. are listed below. Allaccounts have normal balances. At the beginning of the year,retained earning balance is $4,000.
Note Payable due 10/31/2018 | $ 10,000 |
Accounts Receivable | 6,000 |
Accumulated Depreciation- Equipment (Creditbalance) | 6,000 |
Dividends | 1,000 |
Cash | 16,000 |
Depreciation Expense | 5,000 |
Equipment | 12,000 |
Fees Earned | 50,000 |
Rent Expense | 6,000 |
Supplies | 2,000 |
Supplies Expense | 3,000 |
Wages Expense | 21,000 |
Wages Payable | 2,000 |
Q1. Generate the Income statement
Monroe Entertainment Company Income Statement | ||
For the Year Ended December 31, 2016 | ||
Revenues: | ||
S | ||
Total Revenue | ||
Expenses: | ||
Total Expenses: | ||
Net Income | $ |
Please generate Retained Earnings Statement based uponthe above information and net income youcalculated.
Monroe Entertainment Company
Retained Earnings Statement
For the Year Ended Dec 31, 2016
Retained Earnings at beginning of the year | $___________________ |
Net Income | _____________________ |
Less: Dividends | _____________________ |
Net Increase/(Decrease) in the end | ______________________ |
Retained Earnings at end of the year | $_____________________ |
Please generate Balance Sheet as of December 31, 2016.
Monroe Entertainment Company Balance Sheet | |||||
Dec 31, 2016 | |||||
Assets | Liabilities | ||||
$ | $ | ||||
Total Assets | $ | Total Liabilities and Shareholdersâ Equity | $ |
the following Dec 31 year-end adjusted trial balance is forHeath Wilmer Co.The credit balance in Heath Wilmer Owner Capital atthe beginning of the year, January 1, was $320,000. The Owner,Heath Wilmer, invested an additional $300,000 during the currentyear. The land held for future expansion was also purchased duringthe current year.
Heath Wilmer Co. Adjusted Trial balance December 31 | ||
---|---|---|
Cash | $90,000 | |
Account receceivable | 18,000 | |
Prepaid insurance | 6,000 | |
Office supplies | 2,000 | |
Investments in stocks | 150,000 | |
Land held for future expasion | 300,000 | |
Office equipment | 18,000 | |
Accumulated depreciation-Equipment | $4,000 | |
Building | 600,000 | |
Accumulated depreciation-Building | 170,000 | |
Intangible assets-licensing agreement | 50,000 | |
Accounts payable | 17,800 | |
Salaries Payable | 16,400 | |
Long-term note payable | 224,000 | |
Heath Wilmer, Capital | 620,000 | |
Health Wilmer, Withdrawals | 60,000 | |
Service fees earned | 470,800 | |
Salaries expense | 180,000 | |
Insurance expense | 12,000 | |
Rent expense | 25,000 | |
Depreciation expense-Equipment | 2,000 | |
Depreciation expense-Building | 10,000 | |
Totals | $1,523,000 | $1,523,000 |
Required:
1. Prepare a classified year-end balance sheet. (Note: A $22,000installment on the long-term note payable is due within oneyear.)
2. Using the information presented:
(a) Calulate the current ratio. Comment on the ability of HeathWilmer Co. to meets its short-term debts.
(b) Calulate the debt ratio and comment on the financialposition and risk analysis of Heath Wilmer Co.
(c) Using the account balances to analyze the financial positionof Heath Wilmer Co., why would the owner need to invest anadditional $300,000 in the bussiness when the business is alreadyprofitable and the owner had an existing capital balance of$320,000?
Use the starting balance sheet and statement of cash flows toanswer the question.
HopewellCorporation Balance Sheet As of December 31, 2017 (amounts in thousands) | |||
---|---|---|---|
Cash | 125,000 | AccountsPayable | 24,000 |
AccountsReceivable | 36,000 | Debt | 37,000 |
Inventory | 52,000 | OtherLiabilities | 30,000 |
Property Plant& Equipment, Gross | 226,000 | TotalLiabilities | 91,000 |
AccumulatedDepreciation | 59,000 | Paid-InCapital | 56,000 |
Property Plant& Equipment, Net | 167,000 | RetainedEarnings | 239,000 |
OtherAssets | 6,000 | TotalEquity | 295,000 |
TotalAssets | 386,000 | TotalLiabilities & Equity | 386,000 |
HopewellCorporation Statement of Cash Flows January 1 to March 31, 2018 (amounts in thousands) | |
---|---|
Net Income | 8,600 |
Depreciation | 1,400 |
Decrease(Increase) in Accounts Receivable | 400 |
Decrease(Increase) in Inventory | (600) |
Increase(Decrease) in Accounts Payable | (100) |
OtherAdjustments | 0 |
Net CashFlow from Operating Activities | 9,700 |
Purchase ofProperty, Plant, & Equipment | (7,800) |
OtherAdjustments | 0 |
Net CashFlow from Investing Activities | (7,800) |
Increase(Decrease) in Debt | 200 |
Dividends | (700) |
OtherAdjustments | 0 |
Net CashFlow from Financing Activities | (500) |
Net CashFlow | 1,400 |
What is the value for Total Assets on March 31,2018?
Please specify your answer in the same units as the financialstatements.