Finance 419 - please see attached

All problem sets must be completed in  one  Excel workbook.  To receive credit,  problems and answers must be legible  and work must be shown.

1. Listed below in alphabetical order are the balance sheet items of Johnson Company at December 31, 2011. Prepare a proper balance sheet.

Accounts payable $ 9,000

Accounts receivable 15,000

Building 96,000

Cash 14,000

Common stock 121,000

Office equipment 5,000

2. The following information relates to Jack Dingo Co. for the year 2011.

Retained earnings, January 1, 2011 $ 47,000 Advertising expense $1,500

Dividends 6,000 Rent expense 9,500

Service revenue 62,500 Utilities expense 3,400

Salaries expense 29,000

Instructions

After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2011

3. Jessica Albania is the bookkeeper for Sweetnen Company. Jessica has been trying to get the balance sheet of Sweetnen Company to balance. Sweetnen’s’s balance sheet is as follows.

SWEETNEN COMPANY

Balance Sheet

December 31, 2011

Assets Liabilities

Cash $17,400 Accounts payable $33,000

Supplies 7,100 Accounts receivable (12,500)

Equipment 45,000 Common stock 40,000

Dividends 9,200 Retained earnings 18,200

Total liabilities and

Total assets $78,700 stockholders' equity $78,700

Instructions

Prepare a correct balance sheet.

4 .Presented below is information related to Lack and Luster, Attorneys at Law.

Retained earnings, January 1, 2011 $ 23,000

Legal service revenue—2011 300,000

Total expenses—2011 211,000

Assets, January 1, 2011 85,000

Liabilities, January 1, 2011 62,000

Assets, December 31, 2011 168,000

Liabilities, December 31, 2011 85,000

Dividends—2011 59,000

Instructions

Prepare the 2011 retained earnings statement for Lack and Luster, Attorneys at Law.

5. Benny’s Repair Shop started the year with total assets of $100,000 and total liabilities of $80,000. During the year, the business recorded $210,000 in revenues, $110,000 in expenses, and paid dividends of $20,000. Show work to support your answer

Stockholders' equity at the end of the year was

a. $120,000.

b. $100,000.

c. $80,000.

d. $90,000.

The net income reported by Benny’s Repair Shop for the year was

a. $80,000.

b. $100,000.

c. $60,000.

d. $190,000.

At October 1, Bennington Enterprises reported stockholders' equity of $35,000. During October, the common stock of $2,000 and the company earned net income of $6,000. If stockholders’ equity at October 31 totals $40,000, what amount of dividends were paid during the month?

a. $0

b. $3,000

c. $4,000

d. $5,000

6. Delta’s accountant also presented all of the items in the statement of cash flows in alphabetical order. Please put these items in the correct format for a statement of cash flows for Delta’s Brake Co. for the year ending January 31. All data are in thousands of dollars.

Accounts payable increase	100
Accounts receivable increase	(50)
Cash dividends (common stock)	(200)
Cash and equivalents at beginning of year	300
Cash and equivalents at end of year	150
Depreciation and amortization	200
Increase in other long-term liabilities	0
Inventories increase	(200)
Issuance of long-term debt, net	100
Net cash provided by (used in) financing activities	0
Net cash provided by (used in) investing activities	(700)
Net cash provided by (used in) operating activities	550
Net income	500
Net increase in cash and equivalents	(150)
Notes payable increase	100
Purchase of plant and equipment	(700)