11/28/2020 Exercise 2-8

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Tamarisk, Inc. Income Statement

$

$

$

Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Exercise 2-8 These financial statement items are for Tamarisk, Inc. at year-end, July 31, 2017.

Salaries and wages payable $ 3,480

Salaries and wages expense 58,800

Supplies expense 17,400

Equipment 19,900

Accounts payable 4,100

Service revenue 67,400

Rent revenue 10,300

Notes payable (due in 2020) 3,600

Common stock 16,000

Cash 30,500

Accounts receivable 11,580

Accumulated depreciation—equipment 8,000

Dividends 4,000

Depreciation expense 6,000

Retained earnings (beginning of the year) 35,300

Your answer is correct. Prepare an income statement for the year. Tamarisk, Inc. did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

For the Year Ended July 31, 2017

Revenues

Service Revenue 67400

Rent Revenue 10300

Total Revenues 77700

Expenses

Salaries and Wages Expense 58800

Depreciation Expense 6000

Supplies Expense 17400

Total Expenses 82200

11/28/2020 Exercise 2-8

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Tamarisk, Inc. Retained Earnings Statement

$

: $

:

$

Your answer is correct. Prepare a retained earnings statement for the year. Tamarisk, Inc. did not issue any new stock during the year.

Your answer is partially correct. Try again. Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.)

Tamarisk, Inc. Balance Sheet

Assets

$

$

:

$

Liabilities and Stockholders' Equity

$

$

Net Income / (Loss) -4500

For the Year Ended July 31, 2017

Retained Earnings, August 1, 2016 35300

Less Net Income / (Loss) -4500

Less Dividends -4000

-8500

Retained Earnings, July 31, 2017 26800

July 31, 2017

Current Assets

Cash 30500

Accounts Receivable 11580

Total Current Assets 42080

Property, Plant and Equipment

Equipment 19900

Less Accumulated Depreciation-Equipment 8000 27900

Total Assets 14180

Current Liabilities

Accounts Payable 4100

Salaries and Wages Payable 3480

Total Current Liabilities 7580

Long-term Liabilities

Notes Payable 3600

Total Liabilities 11180

11/28/2020 Exercise 2-8

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Question Attempts: 1 of 2 used

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Your answer is partially correct. Try again. Compute the current ratio and debt to assets ratio. (Round answers to 1 decimal place, e.g. 15.2.)

Current ratio :1

Debt to assets ratio %

Copyright © 2000-2020 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Stockholders' Equity

Common Stock 16000

Retained Earnings 35300

Total Stockholders' Equity 51300

Total Liabilities and Stockholders' Equity 62480

5.55

78.84

11/28/2020 Problem 7-4

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Problem 7-4 At January 1, 2017, Wildhorse Co. reported the following property, plant, and equipment accounts:

Accumulated depreciation—buildings $64,000,000

Accumulated depreciation—equipment 54,400,000

Buildings 97,300,000

Equipment 150,800,000

Land 20,250,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments annually. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value.

During 2017, the following selected transactions occurred:

Apr. 1 Purchased land for $4.60 million. Paid $1.150 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.

May 1 Sold equipment for $300,000 cash. The equipment cost $3.12 million when originally purchased on January 1, 2009.

June 1 Sold land for $4.08 million. Received $900,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.30 million when purchased on June 1, 2011. Interest on the note is due annually each June 1.

July 1 Purchased equipment for $2.80 million cash.

Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

Your answer is partially correct. Try again. Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (If a transaction causes a decrease in Ass front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Assets =

Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. = Inte

Jan. 1 $ $ $ $ $ $

$ $

Your answer is partially correct. Try again. Record the above transactions in the tabular summary from part (a). (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equit Equity item that was reduced.)

Assets =

Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip. =

Jan. 1 $ $ $ $ $ $ $ $

Apr. 1

May 1

May 1

June 1

July 1

Dec. 31

Dec. 31

Your answer is partially correct. Try again. Record any adjustments required at December 31. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negati reduced.)

Assets

Cash + Notes Rec. + Interest Rec. + Land + Buildings - Accum. Depr. - Bldgs. + Equipment - Accum. Depr. - Equip

Jan. 1 $ $ $ $ $ $ $ $

Apr. 1

May 1

20,250,000 97,300,000 64,000,000 150800000 -54400000

20250000 97,300,000 -64,000,000 150800000 54400000

-1150000 4600000

300000 -3120000

900000 3180000 -1300000

-2800000 2800000

-100000

-1000000 1000000

20250000 97,300,000 -64,000,000 150800000 54400000

-1150000 4600000

11/28/2020 Problem 7-4

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Question Attempts: 1 of 2 used

May 1

June 1

July 1

Dec. 31

Dec. 31

Dec. 31 $

Dec. 31

Dec. 31

Dec. 31

Your answer is partially correct. Try again. Prepare the property, plant, and equipment section of the company’s statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

WILDHORSE CO. Statement of Financial Position (Partial)

$

$

:

:

$

Copyright © 2000-2020 by John Wiley & Sons, Inc. or related companies. All rights reserved.

300000 -3120000

900000 3180000 -1300000

-2800000 2800000

-1000000 -100000

1000000

December 31, 2017

Property, Plant and Equipment

Land 20,250,000

Building 97300000

Less Accumulated Depreciation-Buildings $64,000,000 33,300,000

Equipment 150,800,000

Less Accumulated Depreciation-Equipment 54,400,000 96,400,000

Total Property, Plant and Equipment 149,950,000

11/28/2020 Problem 3-7

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Problem 3-7 Nancy Tercek started a delivery service, Martinez Deliveries, on June 1, 2017. The following transactions occurred during the month of June.

June 1 Stockholders invested $18,600 cash in the business in exchange for common stock.

2 Purchased a used van for deliveries for $14,900. Nancy paid $3,900 cash and signed a note payable for the remaining balance.

3 Paid $700 for office rent for the month.

5 Performed $4,600 of services on account.

9 Declared and paid $200 in cash dividends.

12 Purchased supplies for $200 on account.

15 Received a cash payment of $1,300 for services performed on June 5.

17 Purchased gasoline for $100 on account.

20 Received a cash payment of $1,700 for services performed.

23 Made a cash payment of $500 on the note payable.

26 Paid $350 for utilities.

29 Paid for the gasoline purchased on account on June 17.

30 Paid $1,030 for employee salaries.

Show the effects of the previous transactions on the accounting equation using the following format. (If a transaction causes a decrease in Assets, Liab parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

MARTINEZ DELIVERIES

Assets = Liabilities + Stockhold

R

Date

Cash + Accounts

Receivable +

Supplies +

Equipment = Notes

Payable + Accounts Payable +

Common Stock +

Revenues

June 1 $ $ $ $ $ $ $ $

2

3

5

9

12

15

17

20

23

26

29

30

$ $ $ $ = $ $ $ $

Prepare an income statement for the month of June.

MARTINEZ DELIVERIES Income Statement

$

$

11/28/2020 Problem 3-7

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Question Attempts: 0 of 2 used

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Prepare a retained earnings statement for the month of June. (List items that increase retained earnings first.)

MARTINEZ DELIVERIES Retained Earnings Statement

$

:

:

$

Prepare a classified balance sheet at June 30, 2017. (List Current Assets in order of liquidity.)

MARTINEZ DELIVERIES Balance Sheet

Assets

$

$

$

Liabilities and Stockholders' Equity

$

$

$

Copyright © 2000-2020 by John Wiley & Sons, Inc. or related companies. All rights reserved.

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