Questions -
Q1. Sampson Company has $500 in its checking account. A customer owes Sampson $1,000. The company has store equipment that cost $1,500 and a truck that cost $5,000. Sampson Company owes the bank $3,500 on the truck loan of which one payment of $700 is due in one week, and owes $4,000 to creditors for its monthly operating expenses, including rent, all of which is due in the next 30 days.
A. List Sampson Company's assets and the dollar amount of each.
B. List Sampson Company's liabilities and the dollar amount of each.
Q2. The following are account balances of Marcia Company on 12/31/10.
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Accounts payable
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$ 1,000
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|
Accounts receivable
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6,000
|
|
Buildings and equipment
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54,000
|
|
Contributed capital
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20,000
|
|
Bonds payable
|
15,000
|
|
Cash
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8,500
|
|
Retained earnings
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17,000
|
|
Accumulated depreciation
|
24,000
|
|
Inventory
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5,500
|
|
Patents
|
3,000
|
Prepare a classified balance sheet for Marcia Company on December 31, 2010.
Q3. Retained earnings on January 1 was $27,000. During the current year net income is $160,000. Cash payments for dividends declared totals $145,000. What is the retained earnings balance on December 31?
Q4. Madison Company has current assets, current liabilities, and long-term liabilities of $8,000, $4,000, and $6,000, respectively. Within these amounts, inventory was $2,000, receivables were $2,000, cash was $4,000, and payables were $1,000. Calculate Madison's quick ratio. What information does this provide?