Chapter 6, Problem 1M

Assets = Liabilities + Stockholders’ Equity     Cash  +  AccountsReceivable  +  Supplies  +  Equipment   AccountsPayable   CommonStock   Retained Earnings      =   +   +  Revenues  -  Expenses  -  Dividends   1.   $ 14,000                   $ 14,000               2.   – 1,000           $ 4,500   $ 3,500                   3.    – 850       $ 850                           4.   4,900   $ 3,700                   $ 8,600         Service Revenue 5.   – 1,200               – 1,200                   6.   – 2,500                               -$ 2,500   7.   – 750                           –$ 750     Rent Expense 8.   500   – 500                               9.   – 4,600                           – 4,600     Salaries/Wages Expense 10.                   700           – 700     Utilities Expense (b) Determine how much stockholders’ equity increased for the month. Increase in stockholders' equity   $ Enter the increase in stockholders'…

Presented below are the captions of Faulk Company’s balance sheet. a.    Current assets. b.    Investments. c.    Property, plant, and equipment. d.    Intangible assets. e.    Other assets. f.    Current liabilities. g.    Noncurrent liabilities. h.    Capital stock. i.    Additional paid-in capital. j.    Retained earnings. Instructions Indicate by letter where each of the following items would be classified. 1.    Preferred stock. 2.    Goodwill. 3.    Salaries and wages payable. 4.    Accounts payable. 5.    Buildings. 6.    Equity investments (to be sold within one year). 7.    Current maturity of long-term debt. 8.    Premium on bonds payable. 9.    Allowance for doubtful accounts. 10.    Accounts receivable. 11.    Cash surrender value of life insurance. 12.    Notes payable (due next year). 13.    Supplies. 14.    Common stock. 15.    Land. 16.    Bond sinking fund. 17.    Inventory. 18.    Prepaid insurance. 19.    Bonds payable. 20.    Income taxes payable.

PROBLEM The balance sheet contains the following major sections: a. Current assets b. Long-term investments c. Property, plant, and equipment d. Intangible assets e. Other assets f. Current liabilities g. Long-term liabilities h. Contributed capital i. Retained earnings j. Accumulated other comprehensive income   _____ 1. Unexperied insurance _____ 2. Idle machinery _____ 3. Unrealized increase in avaiblable for sale securities _____ 4. Land _____ 5. Fund to retire preferred stock _____ 6. Additional paid-in capital on common stock _____ 7. Deferred income taxes-noncurrent _____ 8. Obligation for future pension payments _____ 9. Trademark _____ 10. Unearned ticket sales   Required: Using the letters (a) through (j), indicate in what section the accounts would be classified.

A company's net income before interest & tax was OMR 400000 for its most recent year. The company's income statement included Income Tax Expense of OMR 140000 and Interest Expense of OMR 60000. At the beginning of the year the company's shareholders' equity was OMR 1900000 and at the end of the year it was OMR 2100000. Long term loan ( Debt) was OMR 800000. Calculate return on capital employed Select one: a. 13.7% b. 16.1% c. 11.7% d. 9.5%

Assume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments account of $1,100,000 and $900,000, respectively. The company sold a long-term investment that cost $300,000 and recorded a gain on this sale of $35,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be:   Multiple Choice   $200,000.   $300,000.   $235,000.   $335,000.

From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret:   a. Current Ratio; b. Liquidity Ratio; c. Proprietary Ratio; d. Debt-Equity Ratio; e.Capital Gearing Ratio.   Balance Sheet as on 31st December 2020 Liabilities Amount (Rs) Assets Amount (Rs) 5,000 Equity Shares of Rs 10 each    5,00,000.00   Land & Building      5,00,000.00 8%, 2000 Preference Shares of Rs 100 each    2,00,000.00   Plant & Machinery   6,00,000.00 9 % Debentures of Rs 100 each    4,00,000.00   Sundry Debtors   2,00,000.00 Reserves & Surplus  3,00,000.00 Stock 2,40,000.00 Sundry Creditors  1,50,000.00 Cash in hand   55,000.00 Bank Overdraft    50,000.00 Prepaid Expenses    5,000.00                 TOTAL 16,00,000.00 TOTAL 16,00,000.00 don't give hand written answers

1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule. d.the cash flows from operating activities section.   2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar. If an amount box does not require an entry, leave it blank or enter "0".

Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Nash's Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Swifty Company.  1. At the beginning of Year 1, Nash's bought 30% of Swifty's common stock at its book value. Total book value of all Swifty's common stock was $720,000 on this date. 2. (a) During Year 1, Swifty reported $50,000 of net income. (b) During Year 1, Swifty paid $28,000 of dividends. 3. (a) During Year 2, Swifty reported $25,000 of net income. (b) During Year 2, Swifty paid $18,000 of dividends. 4. (a) During Year 3, Swifty reported a net loss of $8,000. (b) During Year 3, Swifty paid $3,500 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.

Determine the effects of the following transactions on Current assets, Current liabilities, and Working Capital. Write “Inc” for an Increase, “Dec” for a Decrease, or “NE” if there is No Effect. Write your answers in the blanks provided.   Current Asset Current Liability Net Working Capital 1. Sale of merchandise on account       2. Acquired shares of ABS CBN for cash       3. Pays the long-term debt of P150,000       4. Sells old machine for P10,000 cash       5. Issued shares of stock to cash investors       6. Declared cash dividends       7. Payment of advance rentals (asset method)       8. One year loan from a bank       9. Issued shares of stock to pay short term loan       10. Collection of receivables       11. Cash redemption of bonded debt        12. Six months interest received in advance(liability method is used)       13. Issued stock dividends       14. Payment of cash dividends declared in #6       15. Sell of equipment for P50,000;…