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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,
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 | $ | |
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