1.

As the accountant for Rons Donut Shop, prepare a December 31, 2015, balance sheet from the following: cash, $40,900; accounts payable, $28,900; merchandise inventory, $14,900; Vic Sullivan, capital, $47,800; and equipment, $20,900.

RONS DONUT SHOP Balance Sheet December 31, 2015
Assets		Liabilities
(Click to select)Vic Sullivan, capitalEquipmentCashMerchandise inventoryAccounts payable	$	(Click to select)Accounts payableEquipmentMerchandise inventoryCashVic sullivan, capital	$
(Click to select)EquipmentVic Sullivan, capitalCashMerchandise inventoryAccounts payable		Owners Equity
(Click to select)EquipmentAccounts payableCashMerchandise inventoryVic Sullivan, capital		(Click to select)Vic Sullivan, capitalEquipmentMerchandise inventoryCashAccounts payable
Total assets	$	Total liabilities and owners equity	$

2.

From the following, prepare a classified balance sheet for Ranger Company as of December 31, 2015. Ending merchandise inventory was $5,200 for the year.

Cash	$	7,200	Accounts payable	$	2,400
Prepaid rent		2,200	Salaries payable		2,200
Prepaid insurance		5,200	Note payable (long term)		9,200
Office equipment (net)		6,200	J. Lowell, capital*		12,200

*What the owner supplies to the business. Replaces common stock and retained earnings section.

RANGER COMPANY Balance Sheet December 31, 2015
Assets			Liabilities
Current assets:			Current liabilities:
(Click to select)CashOffice equipment (net)Prepaid insuranceSalaries payableJ. Lowell, capitalMerchandise inventoryAccounts payableNotes payablePrepaid rent	$		(Click to select)Accounts payableOffice equipment (net)Salaries payableMerchandise inventoryCashJ. Lowell, capitalPrepaid insurancePrepaid rentNote payable	$
(Click to select)Notes payableAccounts payableSalaries payableMerchandise inventoryJ. Lowell, capitalOffice equipment (net)Prepaid insuranceCashPrepaid rent			(Click to select)Accounts payablePrepaid insuranceNote payableSalaries payablePrepaid rentJ. Lowell, capitalOffice equipment (net)Merchandise inventoryCash
(Click to select)Merchandise inventoryAccounts payableNotes payablePrepaid rentCashSalaries payableOffice equipment (net)J. Lowell, capitalPrepaid insurance
(Click to select)Accounts payableOffice equipment (net)Prepaid rentJ. Lowell, capitalPrepaid insuranceSalaries payableCashNotes payableMerchandise inventory			Total current liabilities		$
			Long-term liabilities:
Total current assets		$	(Click to select)Prepaid insuranceNotes payableSalaries payableOffice equipment (net)CashJ. Lowell, capitalMerchandise inventoryAccounts payablePrepaid rent
Plant and equipment:			Total liabilities
(Click to select)J. Lowell, capitalPrepaid rentCashOffice equipment (net)Prepaid insuranceMerchandise inventorySalaries payableAccounts payableNote payable					$
			Owners Equity
			(Click to select)Salaries payableNote payablePrepaid insuranceMerchandise inventoryOffice equipment (net)CashPrepaid rentJ. Lowell, capitalAccounts payable
Total assets		$	Total liabilities and owners equity		$

3.

Complete a horizontal analysis for Brown Company. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round the "percent" answers to the nearest hundredth percent.)

BROWN COMPANY Comparative Balance Sheet December 31, 2014 and 2015
					INCREASE (DECREASE)
	2015		2014		Amount	Percent
Assets
Current assets:
Cash	$	13,750	$	9,000	$
Accounts receivable		17,250		13,000
Merchandise inventory		18,250		21,750
Prepaid advertising		53,000		44,250
Total current assets	$	102,250	$	88,000	$
Plant and equipment:
Building (net)		119,500		125,250	$
Land		87,500		87,500
Total plant and equipment	$	207,000	$	212,750
Total assets	$	309,250	$	300,750	$
Liabilities
Current liabilities:
Accounts payable	$	131,250	$	119,500	$
Salaries payable		21,750		17,500
Total current liabilities	$	153,000	$	137,000	$
Long-term liabilities:
Mortgage note payable		98,250		86,500
Total liabilities	$	251,250	$	223,500	$
Owners Equity
J. Brown, capital		58,000		77,250
Total liabilities and owners equity	$	309,250	$	300,750	$