Complete the following exercises

• Classify the accounts below (e.g. Assets, Liabilities or Stockholders Equity)

Accounts Payable		Notes Receivable
Preferred Stock		Cash
Office Supplies		Mortgage Payable
Accounts Receivable		Inventory
Machinery

• Determine the missing amounts.

• Assets $500,000 Stockholders Equity $150,000 Liabilities __________________

• Stockholders Equity $311,000 Liabilities $423,000 Assets _________________

• Assets at January 1, 2013 $950,000

Liabilities at January 1, 2013 $345,000

During 2013 Stockholders Equity increased by $35,000

Liabilities decreased by $15,000 during 2013

Stockholders Equity at December 31, 2013 ______________________

• Identify the Classified Balance Sheet category for each of the accounts listed in question #1 as one of the following:
  • Current Assets
  • Property, Plant & Equipment
  • Current Liabilities
  • Long-term Liabilities
  • None of the above

• Compute the Net Realizable Value of the $460,000 of Accounts Receivable if the company estimates its Allowance for Uncollectible Accounts as 1.5% of its Accounts Receivable.

• The Clark Company sells only one product. It began the year with 100 units on hand with a cost of $10 each. During the year they made the following purchases:

Jan. 15 200 units $11 $2200

Mar. 1 300 units $12 $3600

May 21 250 units $13 $3250

July 3 100 units $14 $1400

Sept 25 200 units $15 $3000

Nov. 30 150 units $16 $2400

At December 31, a physical inventory revealed 400 units remained in inventory.

Determine the Cost of Goods Sold and the Ending Inventory assuming the company uses:

• First-In, First-Out (FIFO) method

• Last-In, Last-Out (LIFO) method

• Forman, Inc. owns machinery with a cost of $250,000. Its estimated useful life is 10 years and a $30,000 salvage value.

Determine the depreciation expense for each of the 10 years of the assets life, assuming the company uses:

• Straight-line method

• Double-Declining Balance method

• Sum of Years Digits method

• Over the 15 years since it began, Sherman Company has generated profits totaling $2,500,000. During that same period of time, Sherman has paid $0.20 per share in dividends every year to its 100,000 shareholders. Determine the current balance of Sherman Companys Retained Earnings account.

• Determine the missing amounts:

Sales Revenue $ ________

Cost of Goods Sold 1,500,000

Gross Margin $ ________

General & Admin. Expenses 400,000

Depreciation Expense 100,000

Net Income Before Tax $2,500,000

Federal Income Tax 500,000

Net Income $ ________

• Using the information presented in Question #8, determine the EPS assuming the company has 400,000 shares of common stock outstanding.