Unit 1 Submission Assignment 2

Assignment Details

Financial statements are the primary means of communicating financial information to users. It is important to have a firm understanding of the income statement, balance sheet, and statement of cash flows. Managers will make decisions daily that will have an effect on the elements of the accounting equation: Assets = Liabilities + Owners Equity. Managerial accounting reports use these same financial statements but also incorporate non-financial information that will assist internal users in making strategic and tactical decisions. For this reason, it is important for you to understand how decisions will affect the accounting equation.

The following spreadsheet is for Manhattan Family Dentistry on January 1 of the current year.

Based on the information recorded in the balance sheet you completed in Submission Lesson - 1 below, in 2-3 pages, what non-financial information could be requested for a managerial report to be used for internal decision making?

MANHATTAN FAMILY DENTISTRY Balance Sheet January 1, 20 Assets Liabilities & Stockholders' Equity Cash Accounts receivable Land Building... Equipment $ 20,000 31,000 190,000 225,000 35.000 Liabilities: Accounts payable ........ Total liabilities Owners' equity: Capital stock Total assets S501.000 Total liabilities and owners' equity.... During the first few days of January, the following transactions occurred: Jan 2 Equipment was purchased for $38,000 on credit The business collected $16,000 of its accounts receivable and paid $23,000 of its accounts payable. The business borrowed $60,000 from the bank, giving a note payable due in 90 days. Additional capital stock was issued in exchange for $27,000 cash. Manhattan Family Dentistry Balance Sheet Assets Amount Liabilities Amount ($) and ($) owners' equity Cash (a) 100,000 Liabilities: Accounts 15,000 Notes 60,000 receivable Payable (b) Land 190,000 Accounts 60,000 payable (c) Building 225,000 Total 120,000 liabilities Equipment 73,000 Owners' equity Capital 483,000 stock (e) Total assets 603,000 Total 603,000 liabilities and owners' equity (d) a.Cash Opening balance Collection from A/R Paid to A/P Borrowed from bank Issued stock in cash Balance 20,000 16000 (23,000) 60,000 27,000 100,000 b.Accounts receivable Opening balance Collection Balance 31,000 (16,000) 15,000 c. Accounts Payable Opening balance Paid to A/P Equipment on credit Balance 45,000 (23,000) 38,000 60,000 d. Equipment Opening balance Additions during the year Balance 35,000 38,000 73,000 e. Capital stock Opening balance Issuance of stock Balance 456,000 27,000 483,000 MANHATTAN FAMILY DENTISTRY Balance Sheet January 1, 20 Assets Liabilities & Stockholders' Equity Cash Accounts receivable Land Building... Equipment $ 20,000 31,000 190,000 225,000 35.000 Liabilities: Accounts payable ........ Total liabilities Owners' equity: Capital stock Total assets S501.000 Total liabilities and owners' equity.... During the first few days of January, the following transactions occurred: Jan 2 Equipment was purchased for $38,000 on credit The business collected $16,000 of its accounts receivable and paid $23,000 of its accounts payable. The business borrowed $60,000 from the bank, giving a note payable due in 90 days. Additional capital stock was issued in exchange for $27,000 cash. Manhattan Family Dentistry Balance Sheet Assets Amount Liabilities Amount ($) and ($) owners' equity Cash (a) 100,000 Liabilities: Accounts 15,000 Notes 60,000 receivable Payable (b) Land 190,000 Accounts 60,000 payable (c) Building 225,000 Total 120,000 liabilities Equipment 73,000 Owners' equity Capital 483,000 stock (e) Total assets 603,000 Total 603,000 liabilities and owners' equity (d) a.Cash Opening balance Collection from A/R Paid to A/P Borrowed from bank Issued stock in cash Balance 20,000 16000 (23,000) 60,000 27,000 100,000 b.Accounts receivable Opening balance Collection Balance 31,000 (16,000) 15,000 c. Accounts Payable Opening balance Paid to A/P Equipment on credit Balance 45,000 (23,000) 38,000 60,000 d. Equipment Opening balance Additions during the year Balance 35,000 38,000 73,000 e. Capital stock Opening balance Issuance of stock Balance 456,000 27,000 483,000