I need help with Part B..
Revenue -Expenses =Net Income Account Name $ Amount Account Name $ Amount $ Amount 0 Cash Non Cash Assets Liabilities Contributed Capital Earned Capital Account Name S Amount Account Name S Amount Account Name $ Amount Account Name S Amount Account Name S Amount Cash 6,700 Accts Recy 14,800 = Accts Payable 600 Common Stock 6,000 RE 12,400 Notes Payable 2,500 3,100 Beginning Balance = RE -950 Rent 950 -950 -950 8,800 AR -8,800 = Cash Cash Cash Cash Cash -500 = AP -500 -1,600 = RE 1,600 Cash Collect 1,600 1,600 = NP 5,000 1) Paid Rent 2) Cash Collected 3) Paid Cash for AP 4) Cash Collected 5) Borrowed 6) Billed City/Client 7) Paid Salary 8) Util Invoice 9) Paid Dividend 10) Equipment 11) Paid Interest 1,600 AR 5,000 AR -4,000 8,100 = RE 8,100 Service Rev -4,000 Cash RE 8,100 Paid Salary Invoiced 4,000 8,100 -4,000 -410 = Ap 410 RE 410 -410 -6,000 Cash = RE Cash -6,000 -9,800 Equip -50 9,800 = Cash RE -50 Interest 50 -50 " Ending Balance Cash 800 Accts Recv 22,300 = Accts Payable 8,010 Common Stock 6,000 RE 10,690 Revenue 9,700 Expenses 5,410 4,290 Part A - Complete Problem 2-69 parts B-E on page 92 in the textbook. 1. Determine the impact of the eleven transactions on the financial statement equation (part B) 2. Considering the beginning balances given in the problem as well as the impact of the transactions, create the: a. January income statement (part c), b. January statement of stockholders' equity (part D), and C. Balance sheet as of January 31, 2019 (part E). Part B - Accounts from Max Company's 12/31/18 adjusted pre-closing trial balance appear below. These accounts and balances have been provided on the second tab of the Problem-Set-1-Excel-Template.xlsx on D2L to prevent you from having to retype if you want to solve the problem in Excel. You DO NOT need to create this in an FSET template as you will not be preparing journal entries. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Allowance for Doubtful Accounts Bad Debt Expense Bonds Payable (due 12/31/20) Cash Common Stock Cost of Goods Sold Depreciation Expense Equipment Interest Expense Merchandise Inventory Prepaid Rent Rent Expense Retained Earnings (beginning balance) Salaries and Wage Expense Salaries Payable Sales Revenue 10,000 22,500 43,000 3,000 1,100 53,000 31,800 42,200 97,000 2,300 122,900 3,800 39,000 7,100 15,800 18,000 55,100 4,200 225,000 First classify the accounts above (asset, liability, equity, revenue, expense). Then calculate net income and determine the ending balance of retained earnings. Finally prepare a classified balance sheet (current vs long term) using the information above. Using balance sheet, answer the questions below. 1. What is the total amount reported as Current Assets as of 12/31/18? 2. What is the total amount reported as Total Liabilities as of 12/31/18? 3. What is the total amount report as Total Stockholders' Equity as of 12/31/18? 4. Calculate the Debt to Equity ratio as of 12/31/18 and briefly discuss what this means. 5. Calculate the Current Ratio as of 12/31/18 and briefly discuss what this means. Problem Set #1 Part B Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Allowance for Doubtful Accounts Bad Debt Expense Bonds Payable (due 12/31/20) Cash Common Stock Cost of Goods Sold Depreciation Expense Equipment Interest Expense Merchandise Inventory Prepaid Rent Rent Expense Retained Earnings (beginning balance) Salaries and Wage Expense Salaries Payable Sales Revenus 10,000 Liability 22,500 Asset 43,000 Asset/Expense 3,000 Asset 1,100 53,000 Liability 31,800 Asset 42,200 Equity 97,000 Expense 2,300 Expense 122,900 Asset 3,800 Expense 39,000 Asset 7,100 Asset 15,800 Expense 18,000 Equity 55,100 Expense 4,200 Liability 225 nnn Revenue a As you are working through the first problem set, I wanted to provide you a few check figures so you can check to make sure you are on the right track before submitting. Remember we have drop in hours on Wednesday, Saturday & Sunday this week if you need help. The Friday discord session is for content questions but not graded assignment help. For Part A - Net Income should be $4,290 and total assets should be $24,700 (this would also then be your total liabilities & SE as well). For Part B - Your total assets should be $177,300 (this would also then be your total liabilities & SE as well). Hope this helps! Katie Revenue -Expenses =Net Income Account Name $ Amount Account Name $ Amount $ Amount 0 Cash Non Cash Assets Liabilities Contributed Capital Earned Capital Account Name S Amount Account Name S Amount Account Name $ Amount Account Name S Amount Account Name S Amount Cash 6,700 Accts Recy 14,800 = Accts Payable 600 Common Stock 6,000 RE 12,400 Notes Payable 2,500 3,100 Beginning Balance = RE -950 Rent 950 -950 -950 8,800 AR -8,800 = Cash Cash Cash Cash Cash -500 = AP -500 -1,600 = RE 1,600 Cash Collect 1,600 1,600 = NP 5,000 1) Paid Rent 2) Cash Collected 3) Paid Cash for AP 4) Cash Collected 5) Borrowed 6) Billed City/Client 7) Paid Salary 8) Util Invoice 9) Paid Dividend 10) Equipment 11) Paid Interest 1,600 AR 5,000 AR -4,000 8,100 = RE 8,100 Service Rev -4,000 Cash RE 8,100 Paid Salary Invoiced 4,000 8,100 -4,000 -410 = Ap 410 RE 410 -410 -6,000 Cash = RE Cash -6,000 -9,800 Equip -50 9,800 = Cash RE -50 Interest 50 -50 " Ending Balance Cash 800 Accts Recv 22,300 = Accts Payable 8,010 Common Stock 6,000 RE 10,690 Revenue 9,700 Expenses 5,410 4,290 Part A - Complete Problem 2-69 parts B-E on page 92 in the textbook. 1. Determine the impact of the eleven transactions on the financial statement equation (part B) 2. Considering the beginning balances given in the problem as well as the impact of the transactions, create the: a. January income statement (part c), b. January statement of stockholders' equity (part D), and C. Balance sheet as of January 31, 2019 (part E). Part B - Accounts from Max Company's 12/31/18 adjusted pre-closing trial balance appear below. These accounts and balances have been provided on the second tab of the Problem-Set-1-Excel-Template.xlsx on D2L to prevent you from having to retype if you want to solve the problem in Excel. You DO NOT need to create this in an FSET template as you will not be preparing journal entries. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Allowance for Doubtful Accounts Bad Debt Expense Bonds Payable (due 12/31/20) Cash Common Stock Cost of Goods Sold Depreciation Expense Equipment Interest Expense Merchandise Inventory Prepaid Rent Rent Expense Retained Earnings (beginning balance) Salaries and Wage Expense Salaries Payable Sales Revenue 10,000 22,500 43,000 3,000 1,100 53,000 31,800 42,200 97,000 2,300 122,900 3,800 39,000 7,100 15,800 18,000 55,100 4,200 225,000 First classify the accounts above (asset, liability, equity, revenue, expense). Then calculate net income and determine the ending balance of retained earnings. Finally prepare a classified balance sheet (current vs long term) using the information above. Using balance sheet, answer the questions below. 1. What is the total amount reported as Current Assets as of 12/31/18? 2. What is the total amount reported as Total Liabilities as of 12/31/18? 3. What is the total amount report as Total Stockholders' Equity as of 12/31/18? 4. Calculate the Debt to Equity ratio as of 12/31/18 and briefly discuss what this means. 5. Calculate the Current Ratio as of 12/31/18 and briefly discuss what this means. Problem Set #1 Part B Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Allowance for Doubtful Accounts Bad Debt Expense Bonds Payable (due 12/31/20) Cash Common Stock Cost of Goods Sold Depreciation Expense Equipment Interest Expense Merchandise Inventory Prepaid Rent Rent Expense Retained Earnings (beginning balance) Salaries and Wage Expense Salaries Payable Sales Revenus 10,000 Liability 22,500 Asset 43,000 Asset/Expense 3,000 Asset 1,100 53,000 Liability 31,800 Asset 42,200 Equity 97,000 Expense 2,300 Expense 122,900 Asset 3,800 Expense 39,000 Asset 7,100 Asset 15,800 Expense 18,000 Equity 55,100 Expense 4,200 Liability 225 nnn Revenue a As you are working through the first problem set, I wanted to provide you a few check figures so you can check to make sure you are on the right track before submitting. Remember we have drop in hours on Wednesday, Saturday & Sunday this week if you need help. The Friday discord session is for content questions but not graded assignment help. For Part A - Net Income should be $4,290 and total assets should be $24,700 (this would also then be your total liabilities & SE as well). For Part B - Your total assets should be $177,300 (this would also then be your total liabilities & SE as well). Hope this helps! Katie
