Fin 324 Week 3 Hw

* Text Exercises and Problems

Prepare answers to the following exercises from the text, Accounting: Concepts & Applications, by Albrecht:

Chapter 2: Practice Exercise 2-14 only

Chapter 2: Exercises 2-25, 2-27 (part 1 only) 2-29, 2-32, and 2-33

* The assignment is due November 1st

*

E2-14 For the following four cases, use the expanded accounting equation to compute the missing quantity. Assets Liabilities Capital Stock Retained Earnings Case A $23,000 $11,000 A $ 4,500 Case B 17,500 B $ 4,500 3,600 Case C C 14,000 11,000 27,000 Case D 45,000 29,000 18,000 D

Assets = Liabilities + Owner's Capital + Revenues – Expenses – Owner's Draws

Case A = 23,000 = 11,000 +4,500 = 16,5000 (A) Capital Stock is $16,500

Case B = 17,500 = 4,500 + 3,600 = 8,100 (B) Liabilities is 8,100

Case C = 14,000 +11,000 + 27,000 (C) Assets is 38,000

Case D = 45,000 = 29,000 + 18,000 (D) Retained Earnings is 2,000

2-25 From the following data, prepare a classified balance sheet for Taylorsville Construction

* Company at December 31, 2009.

Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 74,300

Accounts receivable . . . . . . . . . . . . . . . . . . . . . 113,500

Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,000

Owners’ equity, 1/1/09 . . . . . . . . . . . . . . . . . . 314,300

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,600

Distributions to owners during 2009 . . . . . . . . 48,100

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000

Mortgage payable . . . . . . . . . . . . . . . . . . . . . . 423,400

Net income for 2009 . . . . . . . . . . . . . . . . . . . . 109,450

* Owners’ equity, 12/31/09 . . . . . . . . . . . . . . . . ?

2-27 Income Statement Preparation

* The following selected information is taken from the records of...