Saturday, June 4, 2016

Chapter - 2 Financial accounting An introduction to concepts, methods and uses - Solutions for text book questions with case studies and answers to problems by stickney

Solutions continued

HANSEN RETAIL STORE
                                           Balance Sheet
                                        December 31, 2008
                                                                                        
                                                                        Assets
        Cash ($50,000 + $40,000 – $60,000 – $97,400 + $52,900
            + $54,800 – $34,200 – $2,600).............................................         $      3,500
        Accounts Receivable ($116,100 – $54,800)...........................              61,300
        Inventories...................................................................................               15,400
                 Total Current Assets.........................................................         $    80,200
        Building ($60,000 – $2,000).....................................................               58,000
                 Total Assets.........................................................................         $ 138,200
                              Liabilities and Shareholders' Equity
        Accounts Payable ($125,000 – $97,400)................................         $    27,600
        Salaries Payable.........................................................................                 2,400
        Utilities Payable.........................................................................                    180
        Income Taxes Payable...............................................................                 5,608
        Interest Payable.........................................................................                 4,000
        Loan Payable...............................................................................               40,000
                 Total Current Liabilities..................................................         $    79,788
        Common Stock............................................................................         $    50,000
        Retained Earnings.....................................................................                 8,412
                 Total Shareholders' Equity.............................................         $    58,412
                 Total Liabilities and Shareholders' Equity..................         $ 138,200
2.34         (Regaldo Department Store; recording transactions and preparing a balance sheet.)  (Amounts in Thousands)

a.    T-accounts.

                                                        Merchandise
               Cash (A)                          Inventory (A)                      Prepaid Rent (A)        
(1)  500,000      20,000   (2)   (5)  200,000        8,000   (6)   (4)      60,000
                           4,000   (2)                              3,200   (7)
                         60,000   (4)
                       156,800   (7)
                         12,000   (8)                                                                                               
                                                                                                                                            
       247,200                                  188,800                                     60,000



2.34 a. continued.

   Prepaid Insurance (A)                 Patent (A)                     Accounts Payable (L)     
(8)    12,000                           (2)    20,000                           (6)        8,000     200,000   (5)
                                               (2)      4,000                           (7)    160,000
                                                                                                                                            
         12,000                                    24,000                                                       32,000


     Common Stock (SE)   
                       500,000   (1)
                                           
                       500,000       



b.                             REGALDO DEPARTMENT STORES
                                           Balance Sheet
                                         January 31, 2008

                                                                Assets
        Current Assets:
            Cash..........................................................................................       $   247,200
            Merchandise Inventory........................................................            188,800
            Prepaid Rent...........................................................................              60,000
            Prepaid Insurance.................................................................              12,000
                 Total Current Assets.........................................................       $   508,000
            Patent.......................................................................................              24,000
                 Total Assets.........................................................................       $   532,000
                                    Liabilities and Shareholders' Equity
        Current Liabilities:
            Accounts Payable...................................................................       $     32,000
                 Total Current Liabilities..................................................       $     32,000
        Shareholders’ Equity:
            Common Stock........................................................................       $   500,000  Retained Earnings                  0
                 Total Shareholders’ Equity.............................................       $   500,000
                 Total Liabilities and Shareholders’ Equity..................       $   532,000



2.35         (Regaldo Department Stores; analysis of transactions and preparation of income statement and balance sheet.)

a.    T-accounts.

                            Cash (A)                                           Accounts Receivable (A)       
√                  247,200                                          √                          0
(3a)               62,900         32,400       (4)         (3a)         194,600         84,600      (6)
(6)                  84,600           2,700       (5)                                                                      
                                         205,800     (7a)
                                           29,000     (7b)                                                                      
√                  124,800                                          √             110,000


                        Inventory (A)                                            Prepaid Rent (A)              
√                  188,800                                          √                60,000                               
(2)               217,900       162,400     (3b)
                                              4,200     (7a)                                                30,000    (11)
√                  240,100                                          √                30,000


              Prepaid Insurance (A)                                        Equipment (A)               
√                    12,000           1,000     (12)         √                          0                               
                                                                             (1)             90,000                               
√                    11,000                                          √                90,000                               


      Accumulated Depreciation (XA)                                   Patent (A)                    
                                                     0          √         √                24,000                               
                                              1,500     (10)                                                     400    (13)
                                              1,500          √         √                23,600                               


                 Accounts Payable (L)                                     Note Payable (L)              
                                           32,000          √                                                          0        √
(7a)             210,000       217,900       (2)
(7b)               29,000                                                                                 90,000      (1)
                                           10,900          √                                                90,000        √


            Compensation Payable (L)                             Utilities Payable (L)          
                                                     0          √                                                          0        √
                                              6,700       (8)                                                     800      (9)
                                              6,700          √                                                     800        √



2.35 a. continued.

                  Interest Payable (L)                                Income Tax Payable (L)       
                                                     0          √                                                          0        √
                                                 900     (14)                                                  5,610    (15)
                                                 900          √                                                  5,610        √ 


                  Common Stock (SE)                                Retained Earnings (SE)       
                                         500,000          √                                                          0        √
                                                                                                                    13,090    (16)
                                         500,000          √                                                13,090        √


                  Sales Revenue (SE)                                 Cost of Goods Sold (SE)        
(16)             257,500       257,500     (3a)         (3b)         162,400       162,400    (16)
                                                                                                                                                                                                                               


          Compensation Expense (SE)                         Utilities Expense (SE)         
(4)                  32,400                                          (5)               2,700                               
(8)                    6,700         39,100     (16)         (9)                   800           3,500    (16)
                                                                                                                               


            Depreciation Expense (SE)                              Rent Expense (SE)            
(10)                  1,500           1,500     (16)         (11)           30,000         30,000    (16)
                                                                                                                                          
                                                                                                                                         


                                                                                                      Patent
              Insurance Expense (SE)                         Amortization Expense (SE)    
(12)                  1,000           1,000     (16)         (13)                400              400    (16)
                                                                                                                                          
                                                                                                                               


                Interest Expense (SE)                            Income Tax Expense (SE)     
(14)                     900              900     (16)         (15)             5,610           5,610    (16)
                                                                                                                                          
                                                                                                                                         


2.35 continued.

b.                       REGALDO DEPARTMENT STORES
                                        Income Statement
                             For the Month of February 2008

        Sales Revenue.............................................................................       $   257,500
        Expenses:
            Cost of Goods Sold..................................................................       $   162,400
            Compensation ($32,400 + $6,700)......................................              39,100
            Utilities ($2,700 + $800).......................................................                 3,500
            Depreciation............................................................................                 1,500
            Rent...........................................................................................              30,000
            Insurance.................................................................................                 1,000
            Patent Amortization..............................................................                    400
            Interest.....................................................................................                    900
                 Total Expenses...................................................................       $   238,800
        Net Income before Income Taxes............................................       $     18,700
        Income Tax Expense at 30%....................................................               (5,610)
        Net Income...................................................................................       $     13,090


2.35 continued.

c.                             REGALDO DEPARTMENT STORES
                                Comparative Balance Sheet
                                                      
                                                                                         January 31,   February 28,
                                                                                                2008                  2008
Assets
        Cash....................................................................      $   247,200        $   124,800
        Accounts Receivable.......................................                       0             110,000
        Inventories........................................................           188,800             240,100
        Prepaid Rent.....................................................             60,000               30,000
        Prepaid Insurance...........................................             12,000               11,000
            Total Current Assets..................................      $   508,000        $   515,900
        Equipment (at Cost)........................................      $               0        $     90,000
        Less Accumulated Depreciation...................                       0                (1,500)
        Equipment (Net)..............................................      $               0        $     88,500
        Patent.................................................................             24,000               23,600
            Total Noncurrent Assets............................      $     24,000        $   112,100
            Total Assets..................................................      $   532,000        $   628,000
Liabilities and Shareholders' Equity
        Accounts Payable............................................      $     32,000        $     10,900
        Notes Payable...................................................                       0               90,000
        Compensation Payable...................................                       0                 6,700
        Utilities Payable..............................................                       0                    800
        Interest Payable..............................................                       0                    900
        Income Tax Payable.......................................                       0                  5,610
            Total Liabilities...........................................      $     32,000        $   114,910
        Common Stock.................................................      $   500,000        $   500,000
        Retained Earnings..........................................                       0               13,090
            Total Shareholders' Equity.......................      $   500,000        $   513,090
            Total Liabilities and Shareholders'
                 Equity.......................................................      $   532,000        $   628,000
2.36         (Zealock Bookstore; analysis of transactions and preparation of income statement and balance sheet.)

a.    T-accounts.

                            Cash (A)                                           Accounts Receivable (A)       
(1)                  25,000         20,000       (3)         (8)           148,200       142,400    (10)
(2)                  30,000           4,000       (4)                                                                      
(8)                  24,600         10,000       (5)                                                                      
(10)             142,400           8,000       (6)                                                                      
(13)                     850         16,700     (11)
                                         139,800     (12)                                                                      
                      24,350                                                              5,800



2.36 a. continued.

           Merchandise Inventory (A)                                Prepaid Rent (A)              
(7)               160,000       140,000       (8)         (3)             20,000         10,000    (15)
                                           14,600       (9)                                                                      
                         5,400                                                            10,000


           Deposit with Suppliers (A)                                    Equipment (A)               
(6)                    8,000                                          (4)               4,000                               
                                                                             (5)             10,000                               
                         8,000                                                            14,000                               


      Accumulated Depreciation (XA)                             Note Payable (L)              
                                                 400     (16)                                                30,000      (2)
                                              1,500     (17)                                                                      
                                              1,900                                                            30,000          


                 Accounts Payable (L)                          Advances from Customers (L)  
(9)                  14,600       160,000       (7)                                                     850    (13)
(12)             139,800                                                                                                       
                                              5,600                                                                 850          


                  Interest Payable (L)                                Income Tax Payable (L)       
                                                 900     (14)                                                  1,320    (19)
                                                                                                                                          
                                                 900                                                              1,320          


                  Common Stock (SE)                                Retained Earnings (SE)       
                                           25,000       (1)                                                  1,980    (20)
                                                                                                                                          
                                           25,000                                                              1,980          


                  Sales Revenue (SE)                                 Cost of Goods Sold (SE)        
(20)             172,800       172,800       (8)         (8)           140,000       140,000    (20)
                                                                                                                                          
                                                                                                                                         


          Compensation Expense (SE)                         Interest Expense (SE)         
(11)               16,700         16,700     (20)         (14)                900              900    (20)
                                                                                                                                          
                                                                                                                                         



2.36 a. continued.

                   Rent Expense (SE)                              Depreciation Expense (SE)    
(15)               10,000         10,000     (20)         (16)                400           1,900    (20)
                                                                             (17)             1,500                               
                                                                                                                                         


            Income Tax Expense (SE)       
(19)                  1,320           1,320     (20)
                                                                   
                                                                   



b.                                         ZEALOCK BOOKSTORE
                                        Income Statement
                 For the Six Months Ending December 31, 2008

        Sales Revenue...............................................................................       $ 172,800
        Less Expenses:
            Cost of Goods Sold....................................................................       $ 140,000
            Compensation Expense..........................................................             16,700
            Interest Expense......................................................................                  900
            Rent Expense...........................................................................             10,000
            Depreciation Expense.............................................................               1,900
            Income Tax Expense...............................................................               1,320
                 Total Expenses....................................................................       $ 170,820
        Net Income....................................................................................       $      1,980

c.                                         ZEALOCK BOOKSTORE
                                           Balance Sheet
                                        December 31, 2008

Assets
        Current Assets:
            Cash......................................................................................            $     24,350
            Accounts Receivable.........................................................                     5,800
            Merchandise Inventories.................................................                     5,400
            Prepaid Rent.......................................................................                   10,000
            Deposit with Suppliers......................................................                      8,000
                 Total Current Assets....................................................            $     53,550
            Equipment..........................................................................            $     14,000
            Less Accumulated Depreciation.....................................                    (1,900)
            Equipment (Net)................................................................            $     12,100
                 Total Assets....................................................................            $     65,650


2.36 c. continued.

Liabilities and Shareholders' Equity
        Current Liabilities:
            Accounts Payable..............................................................            $       5,600
            Note Payable......................................................................                   30,000
            Advances from Customers...............................................                        850
            Interest Payable................................................................                        900
            Income Tax Payable.........................................................                      1,320
                 Total Current Liabilities.............................................            $     38,670
        Shareholders' Equity:
            Common Stock...................................................................            $     25,000
            Retained Earnings............................................................                      1,980
                 Total Shareholders' Equity.........................................            $     26,980
                 Total Liabilities and Shareholders' Equity.............            $     65,650
2.37         (Zealock Bookstore; analysis of transactions and preparation of comparative income statements and balance sheet.)

a.    T-accounts.

                            Cash (A)                                           Accounts Receivable (A)       
√                    24,350                                          √                  5,800
(3)                  75,000           1,320       (1)         (7)           327,950       320,600      (9)
(4)                    8,000         31,800       (2)                                                                      
(7)                  24,900         20,000       (5)                                                                      
(9)               320,600         29,400     (10)                                                                      
                                         281,100     (11)                                                                      
                                              4,000     (12)                                                                      
√                    85,230                                          √                13,150


          Merchandise Inventory (A)                                 Prepaid Rent (A)              
√                      5,400                                          √                10,000                               
(6)               310,000       286,400       (7)         (5)             20,000         20,000    (13)
                                           22,700       (8)                                                                      
√                      6,300                                          √                10,000                               


           Deposit with Suppliers (A)                                    Equipment (A)               
√                      8,000                                          √                14,000                               
                                              8,000       (4)                                                                      
√                              0                                          √                14,000                               



2.37 a. continued.

       Accumulated Depreciation (XA)                            Note Payable (L)              
                                              1,900          √                                                30,000        √
                                                 800     (14)         (2)             30,000         75,000      (3)
                                              3,000     (15)                                                                      
                                              5,700          √                                                75,000        √


                 Accounts Payable (L)                          Advance from Customers (L)   
                                              5,600          √                                                     850        √
(8)                  22,700       310,000       (6)         (7)                   850
(11)             281,100                                                                                                       
                                           11,800          √                                                          0        √


                  Interest Payable (L)                                Income Tax Payable (L)       
                                                 900          √                                                  1,320        √
(2)                       900           3,000     (16)         (1)               1,320           4,080    (17)
                                              3,000          √                                                  4,080        √


                  Common Stock (SE)                                Retained Earnings (SE)       
                                           25,000          √                                                  1,980        √
                                                                             (12)             4,000           6,120    (18)
                                           25,000          √                                                  4,100        √


                  Sales Revenue (SE)                                 Cost of Goods Sold (SE)        
(18)             353,700       353,700       (7)         (7)           286,400       286,400    (18)
                                                                                                                                          
                                                                                                                                         


          Compensation Expense (SE)                         Interest Expense (SE)         
(10)               29,400         29,400     (18)         (2)                   900                               
                                                                             (16)             3,000           3,900    (18)
                                                                                                                                         


                   Rent Expense (SE)                              Depreciation Expense (SE)    
(13)               20,000         20,000     (18)         (14)                800                               
                                                                             (15)             3,000           3,800    (18)
                                                                                                                               



2.37 a. continued.

            Income Tax Expense (SE)       
(17)                  4,080           4,080     (18)
                                                                   
                                                                   



b.                                         ZEALOCK BOOKSTORE
                             Comparative Income Statement
                                        For 2008 and 2009

                                                                               2008              2009
        Sales Revenue.....................................................      $ 353,700         $ 172,800
        Less Expenses:
            Cost of Goods Sold..........................................      $ 286,400         $ 140,000
            Compensation Expense................................           29,400               16,700
            Interest Expense............................................              3,900                    900
            Rent Expense..................................................           20,000               10,000
            Depreciation Expense...................................              3,800                 1,900
            Income Tax Expense.....................................              4,080                 1,320
                 Total Expenses...........................................      $ 347,580         $ 170,820
        Net Income...........................................................      $      6,120         $      1,980

c.                                         ZEALOCK BOOKSTORE
                                Comparative Balance Sheet
                                December 31, 2008 and 2009

                                                                               2009              2008
Assets
        Current Assets:
            Cash..................................................................      $    85,230         $    24,350
            Accounts Receivable......................................           13,150                 5,800
            Merchandise Inventories..............................              6,300                 5,400
            Prepaid Rent...................................................           10,000               10,000
            Deposit with Suppliers..................................                 --                      8,000
                 Total Current Assets.................................      $ 114,680         $    53,550
        Noncurrent Assets:
            Equipment.......................................................      $    14,000         $    14,000
            Less Accumulated Depreciation..................             (5,700)               (1,900)
            Equipment (Net).............................................      $      8,300         $    12,100
                 Total Assets.................................................      $ 122,980         $    65,650


2.37 c. continued.

Liabilities and Shareholders' Equity
        Current Liabilities:
            Accounts Payable...........................................      $    11,800         $      5,600
            Note Payable...................................................           75,000               30,000
            Advances from Customers............................                --                         850
            Interest Payable.............................................              3,000                    900
            Income Tax Payable......................................              4,080                 1,320
                 Total Current Liabilities..........................      $    93,880         $    38,670
        Shareholders' Equity:
            Common Stock................................................      $    25,000         $    25,000
            Retained Earnings.........................................              4,100                 1,980
                 Total Shareholders' Equity.....................      $    29,100         $    26,980
                 Total Liabilities and Shareholders'
                     Equity......................................................      $ 122,980         $    65,650
2.38         (Portobello Co.; reconstructing the income statement and balance sheet.)

T-accounts to derive the amounts in the income statement and balance sheet appear below.

                               Cash                                                 Accounts Receivable          
√                    18,600                                          √                33,000
(4)                  10,900           4,800       (3)         (15)         228,000       210,000    (14)
(14)             210,000       115,000       (5)                                                                      
                                              3,000     (10)                                                                      
                                           85,000     (17)                                                                      
                                           27,000     (19)                                                                      
√                      4,700                                          √                51,000


                   Notes Receivable                                        Interest Receivable           
√                    10,000                                          √                     600                               
                                           10,000       (4)                                                     600      (4)
√                              0                                          √                          0                               


             Merchandise Inventory                                   Prepaid Insurance            
√                    22,000                                          √                  4,500                               
(6)                  95,000         88,000       (8)                                                  3,000      (1)
(7)                  11,000                                                                                                       
√                    40,000                                          √                  1,500                               



2.38 continued.

             Advances to Employees                                      Prepaid Taxes                
√                              0                                          √                          0                               
(17)                  4,000                                          (19)             3,000                               
√                      4,000                                          √                  3,000                               


                                                                                  Accumulated Depreciation—
           Computer System (at Cost)                               Computer System             
√                    78,000                                                                                 26,000        √
                                                                                                                    13,000    (13) 
√                    78,000                                                                                 39,000        √


                                                                                  Accumulated Depreciation—
                     Delivery Trucks                                           Delivery Trucks              
√                              0                                                                                           0        √
(9)                  60,000                                                                                   4,500    (12) 
√                    60,000                                                                                   4,500        √


                    Accounts Payable                                          Notes Payable                
                                           36,000          √                                                          0        √
(5)               115,000         95,000       (6)                                                60,000      (9)
                                           16,000          √                                                60,000        √


                     Interest Payable                                        Dividend Payable             
                                                     0          √                                                  1,800        √
                                              2,000     (11)         (3)               4,800           6,000      (2)
                                              2,000          √                                                  3,000        √


                     Salaries Payable                                           Taxes Payable               
                                              6,500          √                                                10,000        √
(17)                  6,500                                          (19)           10,000           4,000    (20)
                                              1,300     (18)                                                                      
                                              1,300          √                                                  4,000        √


              Consulting Fee Payable                          Advances from Customers     
                                                     0          √                                                     600        √
                                              4,800     (21)         (16)                600           1,400    (15)
                                              4,800          √                                                  1,400        √


1 comment:

  1. tìm thuê dịch vụ kế toán thuế tại thanh oai
    tìm thuê dịch vụ kế toán thuế tại đan phượng
    tìm thuê dịch vụ kế toán thuế tại quốc oai
    tìm thuê dịch vụ kế toán thuế tại phú thọ
    tìm thuê dịch vụ kế toán thuế tại sóc sơn
    tìm thuê dịch vụ kế toán thuế tại nhà bè
    tìm thuê dịch vụ kế toán thuế tại cần giờ
    tìm thuê dịch vụ kế toán thuế tại hóc môn
    tìm thuê dịch vụ kế toán thuế tại củ chi
    tìm thuê dịch vụ kế toán thuế tại bình chánh
    tìm thuê dịch vụ kế toán thuế tại bình dương
    tìm thuê dịch vụ kế toán thuế tại biên hòa
    tìm thuê dịch vụ kế toán thuế tại huế
    tìm thuê dịch vụ kế toán thuế tại đà nẵng
    tìm thuê dịch vụ kế toán thuế tại hưng yên
    tìm thuê dịch vụ kế toán thuế tại vĩnh phúc
    tìm thuê dịch vụ kế toán thuế tại phú thọ
    tìm thuê dịch vụ kế toán thuế tại hải dương
    tìm thuê dịch vụ kế toán thuế tại quảng ninh
    tìm thuê dịch vụ kế toán thuế tại thái bình
    tìm thuê dịch vụ kế toán thuế tại bắc giang
    tìm thuê dịch vụ kế toán thuế tại thái nguyên
    tìm thuê dịch vụ kế toán thuế tại nam định
    tìm thuê dịch vụ kế toán thuế tại thanh hóa
    tìm thuê dịch vụ kế toán thuế tại hà nam
    tìm thuê dịch vụ kế toán thuế tại ninh bình
    tìm thuê dịch vụ kế toán thuế tại hà tĩnh
    tìm thuê dịch vụ kế toán thuế tại nghệ an

    ReplyDelete