Prepare an accounting framework and then indicate the amount and effect of each transaction on the framework.

Use the resulting framework to prepare an income statement, statement of retained earnings and balance sheet for the two company.

Please complete the questions listed below

The University of Texas at Austin McCombs School of Business Foundations of Accounting (ACC 310F) Assignment 1 Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas (in the Assignments area); not all answers will be turned in. Once submitted, your answers cannot be changed. Where appropriate, partial credit will be given. The teaching assistants and I can help you on Part A of the assignment, but not on Part B. Unlike a quiz, you may work with other classmates if you wish, but you must submit your own work. You will not be able to view your submitted answers in Canvas so you should keep a copy of them for reference. Part A (20 points total) A1. Information for the Noble Company appears below; calculate the missing amounts. 2016 Total assets $96,000 Total liabilities ? Capital 48,000 Beginning retained ? earnings Expenses 18,000 Revenues 25,000 Dividends 2,000 Ending retained earnings 37,000 A2. The Smith Company had the following transactions Jan. Jan. Jan. Jan. Jan. 1 3 9 14 24 Jan. 31 Owner invested $12,400 cash to start the company Purchased $850 of equipment Purchased twelve units of inventory for $2,800 on account Paid rent of $620 Sold three units of the previously purchased inventory to a customer for $875 Paid employee payroll of $1,200 Required: i. Prepare an accounting framework and then indicate the amount and effect of each transaction on the framework. ii. Use the resulting framework to prepare an income statement, statement of retained earnings, balance sheet and statement of cash flows for the company. -- Page 1 of 3 -- Part B (30 points total) B1. Pinnacle Incorporated was founded on January 1, 2013; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year-end account balances appears below; unless otherwise noted, all numbers are as of December 31 st for each year after all transactions have been summarized in the accounting framework. Accounts receivable Dividends Payroll expense Inventory Equipment Cash Retained earnings, Dec. 31 Retained earnings, Jan. 1 Notes payable Revenues Capital Selling and administrative expenses Cost of Goods Sold 2016 ? 1,200 23,200 16,780 67,800 18,600 2015 940 ? 19,700 10,660 64,300 22,600 26,330 25,300 ? 24,300 86,090 54,000 4,240 ? 18,400 19,200 74,000 ? 3,650 42,900 Required: i. ii. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. If $2,800 of equipment were sold during 2016, determine the dollar amount of equipment that must have been purchased during 2016. B2. The Simon Company had the following transactions Jan. Jan. Jan. Jan. Jan. Jan. 1 1 3 6 10 14 Jan. Jan. Jan. Jan. Jan. 18 24 26 31 31 Owner invested $16,000 cash to start the company Purchased $6,150 of equipment Paid $280 for administrative expenses Purchased thirty units of inventory for $4,950 Purchased office supplies of $800 Sold twenty units of the previously purchased inventory to a customer for $4,000 on account Borrowed $8,800 from a bank Paid advertising of $330 Received a $400 utility bill for January; will be paid next month A $750 dividend is paid to the owner Made loan payment of $500 Required: i. Prepare an accounting framework and then indicate the amount and effect of each transaction on the framework. ii. Use the resulting framework to prepare an income statement, statement of retained earnings, balance sheet and statement of cash flows for the company. 1. For the Noble Company, what is the dollar amount of total liabilities? 2. For the Noble Company, what is beginning retained earnings? 3. For the Smith Company, what are the company's total revenues? -- Page 2 of 3 -- 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. For the Smith Company, what are the company's total expenses? For the Smith Company, what is the company's ending amount of cash? For the Smith Company, what is the dollar amount of the company's total assets? For the Smith Company, what is the dollar amount of the company's total liabilities? For the Smith Company, what is the dollar amount of the company's total equity? For Pinnacle Incorporated, what were Dividends for 2015? For Pinnacle Incorporated, what was Capital for 2015? For Pinnacle Incorporated, what was Accounts Receivable for 2016? For Pinnacle Incorporated, what was Retained Earnings on January 1, 2016? For Pinnacle Incorporated, what was Cost of Goods Sold for 2016? For Pinnacle Incorporated, if $2,800 of equipment were sold during 2016, what was the dollar amount of equipment that must have been purchased during 2016? For the Simon Company, what are the company's total revenues? For the Simon Company, what are the company's total expenses? For the Simon Company, what is the company's ending amount of cash? For the Simon Company, what is the dollar amount of the company's total assets? For the Simon Company, what is the dollar amount of the company's total liabilities? For the Simon Company, what is the dollar amount of the company's total equity? -- Page 3 of 3