Fin/324 Week Three Individual Assignment

Week Three Individual Assignment

Exercise: 2-14 Expanded Accounting Equation

Assets = Liabilities Capital Stock Retained Earnings

Case A $23,000 $11,000 A 7,500 $ 4,500

Case B 17,500 B 9,400 $ 4,500 3,600

Case C C 52,000 14,000 11,000 27,000

Case D 45,000 29,000 18,000 D ( 2,000)

Exercise: 2-25 Balance Sheet Preparation

Taylor Construction Company

Balance Sheet

December 31, 2009

Assets

Current Assets:

Cash $ 153,600

Supplies 4,250

Account Receivables 113,500

Total current assets $ 271,350

Long-term Assets:

Buildings $ 512,000

Land 90,000

Total long-term assets $ 602,000

Total Assets $ 873,350

Liabilities and Owner’s Equity

Current Liabilities:

Accounts Payable $ 74,300

Total current liabilities $ 74,300

Long-term Liabilities:

Mortgage payable $ 423,400

Total long-term liabilities $ 423,400

Owners’ Equity:

Assets Liabilities total $ 376,050

Total Owner’s Equity $ 376,050

Total Liabilities and Owner’s Equity $ 873,350

Exercise: 2-27-Part 1 only, Income Statement Preparation

Pickard and Associates

Income Statement

For Year End December 31, 2009

Revenue:

Accounts Receivables 95,000

Fees 476,000

Total Revenue $ 634,000

Expenses:

Accounts payable $ 143,000

Advertising expense 14,500

Supplies expense 31,500

Rent expense 12,000

Utilities expense 2,500

Miscellaneous expense 5,100

Salary expense 78,000

Total Expenses $ -286.600

Income before taxes= $ 347,400

Income tax @ 30%= $ (104,220)

Net Income: $ 243,180

243,180/ by 11,000 outstanding shares= $...