Cash $615 Accounts payable $1,365 Receivables 1,756 Other liabilities 8,645 Inventories 1,523 Other assets 5,315 Shareholders' equity 1,297 Property, plant, and equipment 2,098 Total $11,307 Total $11,307 Requirement 1 Prepare an analysis of RoyalRoyal's transactions, employing the balance sheet equation approach Show all amounts in millions Enter the events into RoyalRoyal Company's accounting equation one transaction at a time For transaction a, enter the sale on line a1 and the cost of the sale on line a2 Once you have entered all of the events into the accounting equation, calculate the ending balance of each account (Leave any unused cells blank Enter decreases with a minus sign or parentheses and leave any unused cells blank Abbreviations have been used in the heading of the table below ) Assets Liabilities Stockholders' Equity Other Other Cash A R Inv Assets PPE A P Liab SE Bal 4 27 615 1,756 1,523 5,315 2,098 1,365 8,645 1,297 a1 a2 b c d e f g h Bal Requirement 2 Prepare a statement of earnings for the month ended MayMay 31 and a balance sheet as of MayMay 31 Ignore income taxes Begin by preparing the statement of earnings for the month of MayMay (Leave any unused cells blank Use a minus sign or parentheses for a net loss ) Royal Company Statement of Earnings For the Month Ended May 31, 2011 (in millions) Deduct expenses Net earnings (loss) Now prepare a balance sheet Begin by preparing the assets section, then complete the balance sheet by preparing the liabilities and owners' equity section of the statement (Leave any unused cells blank ) Royal Company Balance Sheet May 31, 2011 (In Millions) Assets Total assets Liabilities and Stockholders' Equity Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity

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Cash $615 Accounts payable $1,365 Receivables 1,756 Other liabilities 8,645 Inventories 1,523 Other assets 5,315 Shareholders' equity 1,297 Property, plant, and equipment 2,098 Total $11,307

Cash

$615

Accounts payable

$1,365

Receivables

1,756

Other liabilities

8,645

Inventories

1,523

Other assets

5,315

Shareholders' equity

1,297

Property, plant, and equipment

2,098

Total

$11,307

Total

$11,307

Requirement 1. Prepare an analysis of

RoyalRoyal's

transactions, employing the balance sheet equation approach. Show all amounts in millions.

Enter the events into

RoyalRoyal

Company's accounting equation one transaction at a time. For transaction a, enter the sale on line a1 and the cost of the sale on line a2. Once you have entered all of the events into the accounting equation, calculate the ending balance of each account. (Leave any unused cells blank. Enter decreases with a minus sign or parentheses and leave any unused cells blank.

Abbreviations

have been used in the heading of the table below.)

Assets

Liabilities + Stockholders' Equity

Other

Cash

A/R

Inv

Assets

PPE

A/P

Liab

Bal 4/27

615

1,756

1,523

5,315

2,098

1,365

8,645

1,297

a1.

a2.

Bal

Requirement 2. Prepare a statement of earnings for the month ended

MayMay

31 and a balance sheet as of

MayMay

31. Ignore income taxes.

Begin by preparing the statement of earnings for the month of

MayMay.

(Leave any unused cells blank. Use a minus sign or parentheses for a net loss.)

Royal Company
Statement of Earnings
For the Month Ended May 31, 2011
(in millions)

Deduct expenses





Net earnings (loss)

Now prepare a balance sheet. Begin by preparing the assets section, then complete the balance sheet by preparing the liabilities and owners' equity section of the statement. (Leave any unused cells blank.)

Royal Company
Balance Sheet
May 31, 2011
(In Millions)
Assets








Total assets





	Liabilities and Stockholders' Equity
Liabilities


	Total liabilities
Stockholders' equity


	Total stockholders' equity
Total liabilities and stockholders' equity