Answered step by step
Verified Expert Solution
Question
1 Approved Answer
fill out the chart. answer the questions. Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It
fill out the chart. answer the questions.
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year, the accounting records reflected total assets of $700,000 and total liabilities of $300,000. During the current year, the following summarized events occurred:
oints
eBook
References
- Issued additional shares of common stock for $170,000 cash.
- Borrowed $116,000 cash from the bank and signed a 10-year note.
- Built an addition on the buildings for $257,000 and paid cash to the contractor.
- Purchased equipment for the new addition for $41,500, paying $4,150 in cash and signing a note for the balance due in two years.
- Returned a $4,150 piece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable.
- Purchased a delivery truck (equipment) for $18,500; paid $12,950 cash and signed a two-year note for the remainder.
- A stockholder sold $7,450 of his stock in Mallard Incorporated to his neighbor.
Required:
1. Complete the spreadsheet that follows. The first transaction is used as an example.
- Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the end of year.
- As of the current year-end, has the financing for Mallard Incorporated's (MI's) investment in assets primarily come from liabilities or stockholders' equity?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started