Question

In: Accounting

Required information [The following information applies to the questions displayed below.] Assume for each of the...

Required information

[The following information applies to the questions displayed below.]

Assume for each of the following independent cases that the annual accounting period ends on December 31 and that the total of all revenue accounts was $155,000 and the total of all expense accounts was $132,500.

Case A: Assume that the business is a sole proprietorship owned by Proprietor A. Prior to the closing entries, the Capital account reflected a credit balance of $55,000 and the Drawings account showed a balance of $8,500.
Case B: Assume that the business is a partnership owned by Partner A and Partner B. Prior to the closing entries, the owners’ equity accounts reflected the following balances: A, Capital, $45,000; B, Capital, $43,000; A, Drawings, $5,500; and B, Drawings, $9,500. Profits and losses are divided equally.
Case C: Assume that the business is a corporation. Prior to the closing entries, the stockholders’ equity accounts showed the following: Capital Stock, par $10, authorized 35,000 shares, outstanding 17,500 shares; Additional Paid-In Capital, $5,500; Retained Earnings, $70,000. No dividends were declared.
  1. Show how the equity section of the balance sheet would appear at December 31 for each case.
  1. Case A: Sole Proprietorship
  2. Case B: Partnership
  3. Case C: Corporation

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 45 $ 10 July 13 Purchase 225 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 170 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under LIFO. Assume a periodic inventory system is used. LIFO...
Required information [The following information applies to the questions displayed below.] The following are the transactions...
Required information [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 54 $ 10 July 13 Purchase 270 12 July 25 Sold (100 ) $ 16 July 31 Ending Inventory 224 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 28,000 $ 52,000 Work in process 9,000 21,000 Finished goods 61,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 181,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 10,000 Indirect labor 46,000 Other overhead costs...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 46,000 $ 55,000 Work in process 9,000 19,600 Finished goods 62,000 33,300 Activities and information for May Raw materials purchases (paid with cash) 183,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 11,000 Indirect labor 57,500 Other overhead costs...
A) Required information [The following information applies to the questions displayed below.] The following information pertains...
A) Required information [The following information applies to the questions displayed below.] The following information pertains to the inventory of Parvin Company during Year 2: Jan. 1 Beginning Inventory 400 units @ $ 30 Apr. 1 Purchased 2,000 units @ $ 35 Oct. 1 Purchased 600 units @ $ 38 During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change...
Required information [The following information applies to the questions displayed below.] The following information was reported...
Required information [The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,125 Accounts Receivable 710 Aircraft Fuel Expense 10,000 Cash 3,100 Common Stock 1,285 Dividends 20 Equipment 15,930 Income Tax Expense 320 Interest Expense 260 Landing Fees Expense 4,400 Notes Payable 7,015 Repairs and Maintenance Expense 2,500 Retained Earnings (as of December 31, 2017) 8,060 Salaries...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.    On July 31, the company’s Cash account has a $25,752 debit balance, but its July bank statement shows a $27,446 cash balance. Check No. 3031 for $1,260 and Check No. 3040 for $622 were outstanding on the June 30 bank reconciliation. Check No. 3040...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.    On July 31, the company’s Cash account has a $24,754 debit balance, but its July bank statement shows a $26,063 cash balance. Check No. 3031 for $1,110 and Check No. 3040 for $547 were outstanding on the June 30 bank reconciliation. Check No. 3040...
Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The...
Question: Required information [The following information applies to the questions displayed below.] Fo... Required information [The following information applies to the questions displayed below.] For many years, Yelena Company manufactured a single product called a Mono-Relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called a Bi-Relay that has become increasingly popular. The Bi-Relay is a more complex product, requiring 1.00 hour of direct labor time per...
Required information [The following information applies to the questions displayed below.]    In 2018, the Westgate...
Required information [The following information applies to the questions displayed below.]    In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,550,000 $ 4,250,000 $ 1,870,000 Estimated costs to complete as of year-end 5,950,000 1,700,000 0 Billings during the year 2,050,000 4,750,000 3,200,000 Cash collections during...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT