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At January 1 (beginning of its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses Office equipment $1,910 420 3,580 Accounts payable $220 Unearned revenue 1,330 Salaries payable 880 160 Short-term note payable 790 4,730 Common stock ($1 par value) 60 1,070 Additional paid-in capital Retained earnings 6,570 2,020 a. Received $9,510 cash for consulting services rendered. b. Issued 12 additional shares of common stock at a market price of $125 per share. c. Purchased $650 of office equipment, paying 30 percent in cash and owing the rest on a short-term note. d. Received $900 from clients for consulting services to be performed in the next year. e. Bought $480 of supplies on account. f. Incurred and paid $1,810 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,630, due from clients in the next year. h. Received $2,990 from clients paying on their accounts. i. Incurred $6,220 in salaries in the current year, paying $5,310 and owing the rest (to be paid next year). j. Purchased $1,240 in short-term investments and paid $810 for insurance coverage beginning in the next fiscal year. k. Received $15 in interest revenue earned in the current year on short-term investments.

At January 1 (beginning of its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses Office equipment $1,910 420 3,580 Accounts payable $220 Unearned revenue 1,330 Salaries payable 880 160 Short-term note payable 790 4,730 Common stock ($1 par value) 60 1,070 Additional paid-in capital Retained earnings 6,570 2,020 a. Received $9,510 cash for consulting services rendered. b. Issued 12 additional shares of common stock at a market price of $125 per share. c. Purchased $650 of office equipment, paying 30 percent in cash and owing the rest on a short-term note. d. Received $900 from clients for consulting services to be performed in the next year. e. Bought $480 of supplies on account. f. Incurred and paid $1,810 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,630, due from clients in the next year. h. Received $2,990 from clients paying on their accounts. i. Incurred $6,220 in salaries in the current year, paying $5,310 and owing the rest (to be paid next year). j. Purchased $1,240 in short-term investments and paid $810 for insurance coverage beginning in the next fiscal year. k. Received $15 in interest revenue earned in the current year on short-term investments.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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At January 1 (beginning of its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses Office equipment $1,910 420 3,580 Accounts payable $220 Unearned revenue 1,330 Salaries payable 880 160 Short-term note payable 790 4,730 Common stock ($1 par value) 60 1,070 Additional paid-in capital Retained earnings 6,570 2,020 a. Received $9,510 cash for consulting services rendered. b. Issued 12 additional shares of common stock at a market price of $125 per share. c. Purchased $650 of office equipment, paying 30 percent in cash and owing the rest on a short-term note. d. Received $900 from clients for consulting services to be performed in the next year. e. Bought $480 of supplies on account. f. Incurred and paid $1,810 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,630, due from clients in the next year. h. Received $2,990 from clients paying on their accounts. i. Incurred $6,220 in salaries in the current year, paying $5,310 and owing the rest (to be paid next year). j. Purchased $1,240 in short-term investments and paid $810 for insurance coverage beginning in the next fiscal year. k. Received $15 in interest revenue earned in the current year on short-term investments.
Transcribed Image Text:At January 1 (beginning of its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses Office equipment $1,910 420 3,580 Accounts payable $220 Unearned revenue 1,330 Salaries payable 880 160 Short-term note payable 790 4,730 Common stock ($1 par value) 60 1,070 Additional paid-in capital Retained earnings 6,570 2,020 a. Received $9,510 cash for consulting services rendered. b. Issued 12 additional shares of common stock at a market price of $125 per share. c. Purchased $650 of office equipment, paying 30 percent in cash and owing the rest on a short-term note. d. Received $900 from clients for consulting services to be performed in the next year. e. Bought $480 of supplies on account. f. Incurred and paid $1,810 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,630, due from clients in the next year. h. Received $2,990 from clients paying on their accounts. i. Incurred $6,220 in salaries in the current year, paying $5,310 and owing the rest (to be paid next year). j. Purchased $1,240 in short-term investments and paid $810 for insurance coverage beginning in the next fiscal year. k. Received $15 in interest revenue earned in the current year on short-term investments.
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