Samson Company, Inc. Balance Sheet As of December 31, 2007 stockholder's Equity $Amount $Amt 15,000 Accounts Payable $21,000 Wages Payable Liabilities Amount 20,500 Contributed Capital: $1,600 Unearned Revenue 9,000 PICEPV, Common Common Stock ($1 PV) 2,000 $48,000 Accounts Receivable Revenue Receivable Prepaid Rent Prepaid Insurance $11,000 Preferred Stocki10p , 6%,$ 8,000 S 9,600 9,000 Notes Payable $4,000 Interest Payable 51,200 Mortgage Payable 61,000 $26,000 $18,000 $7,200) PCE PV, preferred Retained Earnings $ 36,300 nventory Equipment Accum Degr-Equ$60,000 Building Accum Depr-Bldg Land 560,000 Total Les otal 103,100 Total Stockholder's Equity 103,900 S 207,000 $207,000 Total Liabilities Stockholder's Equity Total Assets Footnotes: 1. At 12/31/07, the balance in the Revenue Receivable account was zero. At 12/31/07, the balance in the Accumulated Depreciation-Building account was also zero. At 12/31/07, the balance in the Interest Payable account was also zero. 2. The Note Payable is a 3 year note @ 7% and was initiated December 31, 2007, principle and interest due upon maturity 3. The Mortgage Payable represents a loan used to purchase the Building on December 31, 2007. The bank that provided the loan allowed Samson Company to finance an additional $1,000 in the loan to account for loan origination fees and documentation fees. Terms of the loan are 20 years and 8% interest; principle and interest due on maturity 4. $6,000 of the Uncarned Revenue has now been earned in 2008 S. During 2008, a client asked you to perform miscellaneous jobs for which you will be paid next year; you believe you have earned S3,500 6. Accounts Receivable decreased by $7,000 during 2008 7. You paid $10,.000 for rent on November 1, 2007 and had no balance in this account prior to the transaction 8. You paid S4,500 for a 18 month insurance policy on November 1,2007 9. You used $900 worth of supplies during 2008 10. You will use the straight line method to depreciate the building. Useful life-20 years, salvage value-0 11. You use double-declining method to depreciate your equipment. Useful life-5 years, salvage value- 10% ofpurchase price 12. Accounts Payable increased by $4,000 during 2008 13. Wage expense for 2008 was $18,000 and wages payable increased by $400 during 2008 14. The company paid $1,100 in dividends in 2008 Page 9 of 13 15. Samson's records indicates the following inventory transactions for 2008: Date: Activity units $/item Total Value Beginning Inventory 2600 800 1500 600 500 1500 900 800 200 10 $ 26,000 11 $ 8,800 20 $ 30,000 20 12,000 12 $ 6,000 20 $ 30,000 11 $ 9,900 11 $ 8,800 20 $ 4,000 Jan 10 08 Purchase Mar 29 08 Sale Apr 21 08 Sale May 9 08 Purchase June 15 08 Sale Aug 2 08 Purchase Oct 21 08 Purchase Nov 13 08 Sale Notes: 1) Assume no theft or damage to any goods 2) Any freight charges are included in the purchase price 3) There were 1,800 units in ending inventory Note: The following questions/answers refer to December 31.2008 t br dahag to anny goods 2) Any freight charges are included in the purchase price 3) There were 1,800 units in ending inventory Note: The following questions/answers refer to December 31,2008 32. How much interest payable would we find on the 12/31/08 balance sheet for the Note Payable? a. $2,310 b. S 770 c. $ 257 d. S 193 33. How much interest payable would we find on the 12/31/08 balance sheet for the Mortgage Payable? a. $ 4,880 b. $ 244 c. $58,560 d. 406 34 Assuming the footnotes above capture all the sales transactions, what are total revenues/sales for 2008? 82,500 b s 82,000 c. S 76,000 d. $ 85,500 35. What would be the balance in Unearned Revenue on 12/31/08? a. $ 9,000 b.s 3,000 c. $ 6,000 d.$12,000
