Question 1:
Park & Company was recently formed with a $5,700 investment in the company by stockholders. The company then borrowed $2,700 from a local bank, purchased $1,070 of supplies on account, and also purchased $5,700 of equipment by paying $2,070 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:
$11,400.
$10,470.
$8,400.
$13,100.
If Accounts Payable had a balance of $18,380 at the beginning of the month, and the six amounts shown below were posted to this account, what should be the ending balance?
Three debits posted to Accounts Payable this month: $4,520, $11,120, and $14,620.
Three credits posted to Accounts Payable this month: $3,780, $9,680, and $12,880.
$3,920.
$48,640.
$14,460.
$22,300.
The amount of Total Current Assets that would be reported on the company's balance sheet at the end of the year would be
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Accounts Receivable
|
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Beginning Balance
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189,100
|
|
|
|
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106,500
|
|
18,160
|
|
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64,060
|
|
5,560
|
|
|
|
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14,860
|
|
|
|
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19,360
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Partial listing of account balances at the end of the year:
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|
|
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Cash
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$28,160
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Accounts Receivable
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?
|
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Supplies
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35,760
|
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Other Current Assets
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6,060
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$146,660.
$302,000.
$371,700.
$182,400.
5)
In 1999, the Denim Company bought land that cost $15,800. In 2010, a similar piece of land was bought for $28,800 and the company's existing land was estimated to be worth $18,800. On the balance sheet at the end of 2010, the land that was purchased in 1999 would be reported at:
$18,800.
$15,800.
the average of three prices.
$28,800.
6)
Use the following information as of December 31, 2010 to calculate the amounts of cash and retained earnings. The company's total assets are $40,500. This company doesn't have other accounts. (Omit the "tiny_mce_markerquot; sign in your response.)
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|
|
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Accounts Payable
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$
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8,100
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|
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Accounts Receivable
|
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8,000
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|
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Supplies
|
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2,100
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|
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Furniture and Equipment
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26,300
|
|
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Contributed Capital
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|
20,000
|
|
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Cash
|
|
?
|
|
|
Retained Earnings
|
|
?
|
|
Cash $
Retained earnings $
7) The balance sheet of Mister Ribs Restaurant reports current assets of $105,000 and current liabilities of $35,000.
Required:
(a) Calculate the current ratio. (Round your answer to 1 decimal place.)
Current ratio
(b) Does it appear likely that Mister Ribs will be able to pay its current liabilities as they come due in the next year?
8) Assume Down.com was organized on May 1, 2010 to compete with Despair.com-a company that sells de-motivational posters and office products. The following events occurred during the first month of Down.com's operations.
a. Received $67,000 cash from the investors who organized Down.com Corporation.
b. Borrowed $13,000 cash and signed a note due in two years.
c. Ordered computer equipment costing $10,000.
d. Purchased $16,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance.
e. Received and paid for the computer equipment ordered in (c).