Reference no: EM131797785
1. The following information was made available from the income statement and balance sheet of Meranda Company:
ITEM 12/31/2010 12/31/2009
Accounts Receivable $ 42,000 $ 45,100
Accounts Payable 27,900 24,500
Merchandise Inventory 68,000 63,000
Sales (2010) 170,000 -
Interest Revenue (2010) 3,200 -
Dividend Revenue (2010) 1,800 -
Tax Expense (2010) 11,600 -
Salaries Expense (2010) 22,400 -
COGS (2010) 57,000 -
Interest Expense (2010) 2,200 -
Operating Expenses 19,400 -
Complete the case flow from operating activities section for Meranda Company using the direct method for the year ended December 31, 2010.
2. Given the following balance sheet, complete a horizontal analysis. Compute the percentage to the nearest tenth of a percent
Jessica's Jewelry Store
Comparative Balance Sheet
For Years Ended December 31, 2011 and 2010
(in thousands) 2011 2010 Difference Percentage
Assets
Current Assets
Cash and cash equivalents $319 $288
Accounts Receivable, net 166 173
Inventory 437 400
Total Current Assets
922 861
Property, plant and equipment 377 412
Total Assets
$1,299 $1,273
Liabilities
Current Liabilities
Accounts Payable 132 144
Accrued Liabilities 90 84
Total Current Liabilities
222 228
Long-Term Liabilities
84 96
Total Liabilities 306 324
Stockholders' Equity
Common stock 288 255
Retained earnings 705 694
Total stockholders' equity 993 949
Total liabilities and stockholders' equity $1,299 $1,273
Part B: Answer each of the following 15 questions. Each answer is worth 4 points
1. Given the following information, show the increase or decrease in the accounting equation:
A. Deanne invests $45,000 and $10,000 of office equipment into the business.
B. Furniture is purchased for $8,000 cash.
C. Supplies are purchased on credit for $2,300.
D. The month's electric bill of $775 was paid.
E. The month's cash sales were $5,000.
2. Journalize the following transactions and include the explanations.
A. Tammy invested $40,000 into her corporation on June 11.
B. Tammy purchased inventory for $95,000, of which $70,000 was on account on June 14.
C. Tammy paid one month's rent of $2,400 on June 16.
D. Tammy had sales of $15,000 on account on June 19.
E. Tammy had paid $2,500 on her payables account on June 21.
3. Prepare a trial balance from the following information for Computer Systems, Inc. for December 31, 2012:
Computer Systems, Inc.
Trial Balance
Computer Systems, Inc.
Account Name
Accounts payable $4,298
Common Stock $4,073
Sales $8,302
Cash $1,902
Notes Payable $888
Wages expense $777
Supplies Expense $1,028
Equipment $5,183
Accounts receivable $1,733
Inventory $6,938
4. Compute the missing information from this post-closing trial balance:
Cash $38,502
Accounts Receivable 14,372
Prepaid Rent 18,229
Prepaid Insurance 4,583
Supplies (A)
Accounts Payable (B)
Wages Payable 29,428
Common Stock 30,049
Retained Earnings 18,423
_________ _________
Total $80,436 $80,436
5. Journalize the following transactions using the perpetual inventory method:
Nov. 1 Purchased $3,600 of merchandise from Hilltop, terms 2/10, n/30.
Nov. 5 Purchased $1,750 of merchandise for cash from Owen's Supply.
Nov. 7 Purchased $3,400 of merchandise from Seaside, terms 1/15, n/30.
Nov. 10 Returned $500 of merchandise to Seaside. Credit Memo #131.
Nov. 11 Paid the invoice from Hilltop.
6. Given the following information, prepare a balance sheet for Brandon's Campstore for the year ending December 31, 2012:
Cash $38,745 Retained Earnings $171,309
Common Stock $43,500 Equipment $37,200
Accounts Receivable $14,109 Accounts Payable $26,351
Land $35,000 Inventory $81,311
Prepaid Supplies $ 9,003 Income Taxes Payable $5,284
Office Computers $16,399 Other PPE $26,550
Accum. Depr. (all) $21,013 Prepaid Insurance $9,140