Asset/Liability Sub-total Cash on hand $70 Balance in checking account 180 Balance in money market deposit account with Central Savings 650 900 Bills outstanding: Telephone $20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Тахes 400 Insurance 220 $1,300 Condo and property 68,000 Condo mortgage loan 52,000 Automobile: 2016 Honda Civic 14,400 Installment loan balances: Auto loans 3,000 Furniture loan 500 3,500 Personal property: Furniture 1,050 Clothing 900 1,950 Asset/Liability Sub-total Investments: US. government savings bonds 500 Apple stock 3,000 3,500 From the data given, prepare Katie Wright's balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset.

Asset/Liability Sub-total Cash on hand $70 Balance in checking account 180 Balance in money market deposit account with Central Savings 650 900 Bills outstanding: Telephone $20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Тахes 400 Insurance 220 $1,300 Condo and property 68,000 Condo mortgage loan 52,000 Automobile: 2016 Honda Civic 14,400 Installment loan balances: Auto loans 3,000 Furniture loan 500 3,500 Personal property: Furniture 1,050 Clothing 900 1,950 Asset/Liability Sub-total Investments: US. government savings bonds 500 Apple stock 3,000 3,500 From the data given, prepare Katie Wright's balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1DC: Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the...

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Life-Positive’s Account Balances 2021 ($) 2022 ($) accounts payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.00Cost of goods sold 19,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Sales 58,000.00 62,500.00Short-term Notes Payable 2,890.00 2,340.00Shares outstanding 85,000.00 90,000.00 tax rate is 32% 4. Calculate the cash flow from assets, cash flow to creditors,and cash flow to stockholders…
Assets ($) 2019 2018 2017 Cash on Hand & at Banks 5936423 4037185 5960614 Accounts Receivable Net 1470879 1404974 1582153 Notes Receivable 0 0 0 Post Dated Cheques 29875 494480 400000 Short Term Investments 79029 79635 77462 Inventory 2480573 3663516 2230840 Spare Parts 296355 302883 325156 Total Current Assets 10648691 10431007 10628454 Long Term Investments 24000 24000 24000 Fixed Assets Net 1209909 1078634 1148657 Lands 151173 151173 0 Projects in Progress 5356 4378 0 Total Fixed Assets 1366438 1234185 1148657 Other Assets 0 0 0 Total Assets 12039129 11689192 11801111 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 989423 528431 423042 Credit Banks 0 88265 0 Short Term Loans 0 0 0 Accrued Part of Long Term Loans 0 0 0 Total Current Liabilities 1766230 1338167 1218900 Long Term Loans & Notes Payable 0 0 0 Corporate Bonds 0 0 0 Other Liabilities 0 0 0 Total Liabilities 1766230 1338167 1218900 Shareholders…
Assets ($) 2019 2018 2017 Cash on Hand & at Banks 5936423 4037185 5960614 Accounts Receivable Net 1470879 1404974 1582153 Notes Receivable 0 0 0 Post Dated Cheques 29875 494480 400000 Short Term Investments 79029 79635 77462 Inventory 2480573 3663516 2230840 Spare Parts 296355 302883 325156 Total Current Assets 10648691 10431007 10628454 Long Term Investments 24000 24000 24000 Fixed Assets Net 1209909 1078634 1148657 Lands 151173 151173 0 Projects in Progress 5356 4378 0 Total Fixed Assets 1366438 1234185 1148657 Other Assets 0 0 0 Total Assets 12039129 11689192 11801111 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 989423 528431 423042 Credit Banks 0 88265 0 Short Term Loans 0 0 0 Accrued Part of Long Term Loans 0 0 0 Total Current Liabilities 1766230 1338167 1218900 Long Term Loans & Notes Payable 0 0 0 Corporate Bonds 0 0 0 Other Liabilities 0 0 0 Total Liabilities 1766230 1338167 1218900 Shareholders…
Assets ($) 2019 2018 2017 Cash on Hand & at Banks 5936423 4037185 5960614 Accounts Receivable Net 1470879 1404974 1582153 Notes Receivable 0 0 0 Post Dated Cheques 29875 494480 400000 Short Term Investments 79029 79635 77462 Inventory 2480573 3663516 2230840 Spare Parts 296355 302883 325156 Total Current Assets 10648691 10431007 10628454 Long Term Investments 24000 24000 24000 Fixed Assets Net 1209909 1078634 1148657 Lands 151173 151173 0 Projects in Progress 5356 4378 0 Total Fixed Assets 1366438 1234185 1148657 Other Assets 0 0 0 Total Assets 12039129 11689192 11801111 Liabilities ($) 2019 2018 2017 Accounts and Notes Payable 989423 528431 423042 Credit Banks 0 88265 0 Short Term Loans 0 0 0 Accrued Part of Long Term Loans 0 0 0 Total Current Liabilities 1766230 1338167 1218900 Long Term Loans & Notes Payable 0 0 0 Corporate Bonds 0 0 0 Other Liabilities 0 0 0 Total Liabilities 1766230 1338167 1218900 Shareholders…
Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a statement of cash flow ?
Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a Statement of Profit & Loss and Statement of…
Fund out the credit sales- Opening debtors Rs.12000 Closing debtors Rs14000 B/R accepted by Debtors Rs. 13000 Cash received from debtors Rs 38400
Trial Balance 30 June 2020 Account Name Debit ($) Credit ($) Cash at Bank 6 820 Accounts Receivable 20 000 Prepaid Insurance 6 000 Property, Plant and Equipment (PP&E) 270 000 Accumulated Depreciation – PP&E 50 000 Office Computers 64 000 Accumulated depreciation – Office Computers 10 000 Accounts Payable 11 528 Unearned Sales Revenue 16 000 Bank Loan 48 000 P. Clayton, Capital (1 July 2019) 188 142 P. Clayton, Drawings 10 900 Sales Revenue 319736 Other Revenue Inventory (1 July 2019) 50 786 Purchases 150 800 Purchases Returns and Discount 26 890 Rent Expense 34 050 Gas and Electricity Expense 10 870 Office Cleaning Expense 6 530 Wages and Salaries Expense 25 900 Telephone Expense 2 700 Insurance Expense 8 440 Advertising Expense 2…
CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 100 01 TL Case 23000 100 02 Dollars Case 23000B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 X Bank DTH Hes 23000 100 01 TL Case 23000C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 100 02 Dollars Case 23000 100 01 TL Case 23000D) THE CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 100 03 Case of Euro 5000 100 01 TL Case 5000E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 100 02 Dollars Case 5000 100 01 TL Case 5000
Green Company uses the Baumol model tomanage its disbursement account. Monthlycash disbursement is P1,200,000. Cash in thisaccount could have earned 5% on moneymarketable securities. Green incurs P576every time cash is transferred to this account.The optimum cash balance is A. 576,000.00B. 166,276.88C. 124,707.66D. 432,000.00
The followimg assets were among those that appeared on Baird’s Co.’s books at the end of the year:Demand bank deposits P650,000Net Long-Term Receivables 400,000Patents and Trademarks 150,000 In preparing constant peso financial statements, how much should Baird classify as monetary assets?a.1,200,000b.1,050,000c.800,000d.650,000
(Transfer of Receivables with Recourse) Beyoncé Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2017. Kathleen Battle Financing assesses a finance charge of2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.Instructions(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2017, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.