Question 1.Account Titles | Dr | Cr | Cash | $10,000 | | Accounts Receivable | 21,500 | | Art Supplies | 5,000 | | Prepaid Insurance | 2,500 | | Printing Equipment | 68,000 | | Accumulated Depreciation | | $35,000 | Accounts Payable | | 8,000 | Interest Payable | | 150 | Notes Payable | | 5,000 | Unearned Advertising Revenue | | 5,600 | Salaries Payable | | 1,300 | Common Stock | | 10,000 | Retained Earnings | | 3,500 | Advertising Revenue | | 71,500 | Salaries Expense | 14,300 | | Insurance Expense | 850 | | Interest Expense | 500 | | Depreciation Expense | 10,000 | | Art Supplies Expense | 3,400 | | Rent Expense | 4,000 | | Total | $140,050 | $140,050 |
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Question 2.Administrative expense | | | | Officers’ salaries | $5,900 | | Depreciation of equipment | 3,960 | Cost of Goods Sold | | 73,570 | Rental revenue | | 20,230 | Selling Expense | | | | Transportation-out | 5,690 | | Sales commission | 7,980 | | Depreciation of equipment | 6,480 | Sales | | 116,500 | Income tax | | 9,580 | Interest expense | | 1,860 |
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Question 3.Current Assets | | | | Cash | $350,000 | | Accounts Receivable (net) | 340,000 | | Inventories at lower of average cost or market | 401,000 | | Trading securities – at cost (fair value $120,000) | 140,000 | Property, plant and equipment | | | | Building (net) | 609,000 | | Office equipment (net) | 160,000 | | Land held for future use | 175,000 | Intangible assets | | | | Goodwill | 80,000 | | Cash surrender value of life insurance | 90,000 | | Prepaid expenses | 12,000 | Current liabilities | | | | Accounts payable | 155,000 | | Notes payable (due next year) | 175,000 | | Pension obligation | 102,000 | | Rent payable | 49,000 | | Premium on bonds payable | 53,000 | Long-term liabilities | | | | Bonds payable | 550,000 | Stockholders’ Equity | | | | Common stock, $1.00 par, authorized | | | 400,000 shares, issued 290,000 | 290,000 | | Additional paid-in capital | 240,000 | | Retained earnings | ? |
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phungh
11 years ago
10
inthw3.docx
