2. (TCO D) The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011
Purple Company
Balance Sheet
as of December 31, 2011
Cash $ 80,000 Accounts payable $ 75,000
Accounts receivable (net) 52,200 Long-term liabilities 100,000
Inventories 57,000 Stockholders' equity 218,500
Investments 76,300
Equipment (net) 96,000
Patents 32,000
$393,500 $393,500
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $60,000;
(b) accounts receivable 0;
(c) allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $13,000 and available-for-sale $48,300, and franchises $15,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
(6) An unrecorded liability was not recorded on the balance sheet of $2000. Instructions
Prepare a balance sheet in good form (stockholders' equity details can be omitted.)
Click here for the solution: The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011
Showing posts with label bookkeeper. Show all posts
Showing posts with label bookkeeper. Show all posts
Thursday, January 14, 2016
Monday, October 26, 2015
Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm
ACC 560 Week 2 Assignment
E1-13 Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed a managerial course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Sara wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no Work-in-Process inventory to consider.
Listed below are the costs her firm incurred for the month ended August 31, 2008.
Supplies used on consulting contracts $ 1,200
Supplies used in the administrative offices 1,500
Depreciation on equipment used for contract work 900
Depreciation used on administrative office equipment 1,050
Salaries of professionals working on contracts 12,600
Salaries of administrative office personnel 7,700
Janitorial services for professional offices 400
Janitorial services for administrative offices 500
Insurance on contract operations 800
Insurance on administrative operations 900
Utilities for contract operations 1,400
Utilities for administrative offices 1,300
a. Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month.
Answer to requirement (b) included.
Click here for the solution: Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm
E1-13 Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed a managerial course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Sara wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no Work-in-Process inventory to consider.
Listed below are the costs her firm incurred for the month ended August 31, 2008.
Supplies used on consulting contracts $ 1,200
Supplies used in the administrative offices 1,500
Depreciation on equipment used for contract work 900
Depreciation used on administrative office equipment 1,050
Salaries of professionals working on contracts 12,600
Salaries of administrative office personnel 7,700
Janitorial services for professional offices 400
Janitorial services for administrative offices 500
Insurance on contract operations 800
Insurance on administrative operations 900
Utilities for contract operations 1,400
Utilities for administrative offices 1,300
a. Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month.
Answer to requirement (b) included.
Click here for the solution: Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm
Sunday, September 20, 2015
The following balance sheet was prepared by the bookkeeper for Blue Company as of December 31, 2011
The following balance sheet was prepared by the bookkeeper for Blue Company as of December 31, 2011
Blue Company
Balance Sheet
as of December 31, 2011
Cash $90,000
Accounts receivable (net) 42,000
Inventories 57,000
Equipment (net) 96,000
Patents 32,000
Sub-Total 393,500
Accounts payable 75,000
Long-term liabilities 100,000
Stockholders' equity 218,500
Sub-Total 393,500
The following additional information is provided:
1) Cash includes the cash surrender value of a life insurance policy $5,000 and a bank overdraft of $4,000 has been deducted.
2) The net accounts receivable balance includes:
a) Accounts receivable debit balances $50,000
b) Accounts receivable credit balances 0
c) Allowance for doubtful accounts 3,800
3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
4) Investments include investments in common stock, trading $13,000 and available-for-sale $46,300 and franchises $17,000
INSTRUCTIONS
Prepare a balance sheet in good form (Stockholders' equity details can be omitted)
Do not worry about balancing the statement but rather compute the account balances properly for presentation purposes.
Click here for the solution: The following balance sheet was prepared by the bookkeeper for Blue Company as of December 31, 2011
Blue Company
Balance Sheet
as of December 31, 2011
Cash $90,000
Accounts receivable (net) 42,000
Inventories 57,000
Equipment (net) 96,000
Patents 32,000
Sub-Total 393,500
Accounts payable 75,000
Long-term liabilities 100,000
Stockholders' equity 218,500
Sub-Total 393,500
The following additional information is provided:
1) Cash includes the cash surrender value of a life insurance policy $5,000 and a bank overdraft of $4,000 has been deducted.
2) The net accounts receivable balance includes:
a) Accounts receivable debit balances $50,000
b) Accounts receivable credit balances 0
c) Allowance for doubtful accounts 3,800
3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
4) Investments include investments in common stock, trading $13,000 and available-for-sale $46,300 and franchises $17,000
INSTRUCTIONS
Prepare a balance sheet in good form (Stockholders' equity details can be omitted)
Do not worry about balancing the statement but rather compute the account balances properly for presentation purposes.
Click here for the solution: The following balance sheet was prepared by the bookkeeper for Blue Company as of December 31, 2011
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