ISU ACCT 284 - Chapter4 (7 pages)

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Chapter4



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Chapter4

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Pages:
7
School:
Iowa State University
Course:
Acct 284 - Financial Accountng
Financial Accountng Documents
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2 S t 3 rd 10outof 10 00 The follov ng adjusted trial balance contains the accounts and balances of Cruz Company as of December 31 2013 the end of its fiscal year No 101 126 128 167 168 301 302 404 612 622 637 640 652 Account Title Debit 18 000 10 100 2 000 23 000 Cash Supplies Prepaid insurance Equipment Accumulated depreciation Equipment T Cruz Capital T Cruz Withdrawals Services revenue Depreciation expense Equipment Salaries expense Insurance expense Rent expense Supplies expense Credit 6 500 42 720 6 000 43 200 2 000 25 186 1 81 4 2 894 1 426 Totals 92 420 92 420 1 Prepare the December 31 2013 closing enlries for Cruz Company Assume the account number for Income Summary is 901 General Journal Date Dec 31 Debit Services revenue Dec 31 43 200 Income summary 43 200 Income summary 33 320 Depreciation expens quipment 2 000 1 Salaries expense Dec 31 25 186 Insurance expense 1 814 Rent expense 2 894 Supplies expense 1 426 Income summary T Cruz Capital Dec 31 T Cruz Capital T Cruz Wrthdrawals 2 Prepare the December 31 2013 post losing 9 880 6 000 9 880 6 000 trial balance for Cruz Company CRUZ COMPANY Post Closing Trial Balance Decenlber31 2013 II II Debit Cash 18 000 Supplies 10 100 Prepaid insurance 2 000 Equipment 23 000 Accumulated depreciation Equipment T Cruz Capital Credit 6 500 46 600 r Totals Credit 1 53 100 53 100 I 8 2 2017 2 Assignment Print View Award 1 out of 1 00 point Exercise 4 11 Preparing the nancial statements LO C2 The following is the adjusted trial balance of Wilson Trucking Company Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation Trucks Land Accounts payable Interest payable Long term notes payable K Wilson Capital K Wilson Withdrawals Trucking fees earned Depreciation expense Trucks Salaries expense Office supplies expense Repairs expense Trucks Totals Debit 8 000 17 500 3 000 172 000 Credit 36 000 85 000 12 000 4 000 53 000 175 000 20 000 130 000 23 500 61 000 8 000 12 000 410 000 410 000 The K Wilson Capital account balance is 175 000 at December 31 2014 1 Prepare the income statement for the year ended December 31 2015 WILSON TRUCKING COMPANY Income Statement For Year Ended December 31 2015 Revenues Trucking fees earned 130 000 Expenses Depreciation expense Trucks Office supplies expense 23 500 8 000 Repairs expense Trucks 12 000 Salaries expense 61 000 Total expenses Net income http ezto mheducation com hm accounting tpx todo printviewSingle 104 500 25 500 2 3 8 2 2017 Assignment Print View 2 Prepare the statement of owner s equity for the year ended December 31 2015 WILSON TRUCKING COMPANY Statement of Owner s Equity For Year Ended December 31 2015 K Wilson Capital December 31 2014 Add Net income 175 000 25 500 200 500 Less Withdrawals K Wilson Capital December 31 2015 20 000 180 500 References Worksheet Exercise 4 11 Preparing the financial statements LO C2 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 04 C2 Identify steps in the accounting cycle 3 3 8 2 2017 3 Assignment Print View Award 1 out of 1 00 point Exercise 4 12 Preparing a classi ed balance sheet LO C3 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation Trucks Land Accounts payable Interest payable Long term notes payable K Wilson Capital K Wilson Withdrawals Trucking fees earned Depreciation expense Trucks Salaries expense Office supplies expense Repairs expense Trucks Totals Debit 8 000 17 500 3 000 172 000 Credit 36 000 85 000 12 000 4 000 53 000 175 000 20 000 130 000 23 500 61 000 8 000 12 000 410 000 410 000 Use the above adjusted trial balance to prepare Wilson Trucking Company s classified balance sheet as of December 31 2015 http ezto mheducation com hm accounting tpx todo printviewSingle 2 4 8 2 2017 Assignment Print View WILSON TRUCKING COMPANY Balance Sheet December 31 2015 Assets Current assets Cash Accounts receivable Office supplies 8 000 17 500 3 000 Total current assets 28 500 Plant assets Trucks Accumulated depreciation Trucks Land 172 000 36 000 136 000 85 000 Total plant assets 221 000 Total assets 249 500 Liabilities Current liabilities Accounts payable Interest payable Total current liabilities 12 000 4 000 16 000 Long term liabilities Long term notes payable 53 000 Total liabilities 69 000 Equity K Wilson Capital Total liabilities and equity 180 500 249 500 References http ezto mheducation com hm accounting tpx todo printviewSingle 3 4 8 2 2017 4 Assignment Print View Award 1 out of 1 00 point Exercise 4 13 Computing the current ratio LO A1 Use the information in the following adjusted trial balance for the Wilson Trucking Company Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation Trucks Land Accounts payable Interest payable Long term notes payable K Wilson Capital K Wilson Withdrawals Trucking fees earned Depreciation expense Trucks Salaries expense Office supplies expense Repairs expense Trucks Debit 8 000 17 500 3 000 172 000 Credit 36 000 85 000 12 000 4 000 53 000 175 000 20 000 130 000 23 500 61 000 8 000 12 000 Totals 410 000 410 000 1 Calculate the current ratio Assume that the industry average for the current ratio is 1 5 Current Ratio Choose Numerator Choose Denominator Current assets Current liabilities 28 500 16 000 Current Ratio Current ratio 1 78 2 Compare Wilson s current ratio with the industry average Wilson s current ratio is above the industry average References Worksheet Exercise 4 13 Computing the current ratio LO A1 http ezto mheducation com hm accounting tpx todo printviewSingle Learning Objective 04 A1 Compute the current ratio and describe what it reveals about a companys financial condition 2 2 8 2 2017 Assignment Print View 7 93 10 Score 5 Points 79 30 Award 0 85 out of 1 00 point Problem 4 3A Determining balance sheet classi cations LO C3 From the dropdown box beside each numbered balance sheet item select the letter of its balance sheet classification If the item should not appear on the balance sheet choose the letter Z from the selection choices A Current assets B Long term investments C Plant assets D Intangible assets E Current liabilities F Long term liabilities G Equity Account Title Classification Account Title Classification 1 Long term investment in stock B 11 Unearned services revenue E 2 Depreciation expense Building C 12 Accumulated depreciation Trucks C 3 Prepaid rent A 13 Cash A 4 Interest receivable A 14 Buildings C 5 Taxes payable E 15 Store supplies A 6 Automobiles C 16 Office


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