Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $670.000 and total liabilities of $285,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $155,000 cash b. Borrowed $122,500 cash from the bank and signed a 10-year note. d Purchased equipment for the new addition for 48.50, paying 34.850 im oash and signing a note due in e. Returned a $4,850 piece of equipment, from (d), because it proved to be defective; received a reduction t. Purchased a delivery truck (equipment) for $12.750: paid $8.925 cash and signed a nine month note for g. A stockholder sold $5.750 of his stock in Mallard Incorporated to his neighbor. six months for the balance. of the note payable. the remainder Required 1 Complete the spreadsheet that follows, using plus (+) for increases and minus for decreases for each account. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities +Stockholders Equity Notes Payable Common Retained Earnings Cash Equipment Buildings Stock a. b. c. d. e. End Based on beginning balances plus the completed spreadsheet provide the Total asse:s, liabilities and stockholders' equity at the end of year Amount a. Total assets at the end of the year b. Total liabilities at the end of the year o. Total stocknolders equityY Required: 1. Complete the spreadsheet that follows, using plus (+) for increases and minus () for decreases for each account. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Common Stock Cash Equipment Bui a. b. c. d. e. End 3. Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the end of year Amount a. Total assets at the end of the year b. Total liabilities at the end of the year o. Total stockholders equity at the end of the year 4. As of the current year-end. has the financing for MI's investment in assets primariy come trom aoltes of the current year-end, has the fnancing for MiI's investment in assets primarily come trom soles or stockholders equity? from laoilities Liabilities Stockholders Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What are the purposes of promotion ?

Answered: 1 week ago