☑AutoSave corrected ACC 620 template ⚫ Saved O Search File Home Insert Page Layout Formulas Data Review View Help ŏ Aptos Narrow 12 Α' Α' ab Wrap Text General Paste B I U ▾ A ▾ Merge & Center $ % 9 ←.0 .000 .00 127 Clipboard ✓ ✓ ✓ fx v ☑ Font Alignment N Number N TL ☑ Comments Share > Autosum |☐ ☐ Conditional Format as Cell Insert Delete Format Formatting Table Styles ▾ Fill▾ Clear ▾ Sort & Find & Filter Select Add-ins Analyze Copilot Data Styles Cells Editing Add-ins A B D E 21 22 Less: Accumulated Depreciation - Machinery Net Property, Plant, and Equipment (37,500) 408,270 (50,000) 379,360 F (62,500) 350,450 G (75,000) 321,540 H | (87,500) (100,000) 292,630 263,720 J K 23 24 Leases - Right of Use Asset 3,648,519 3,243,128 25 26 Total Assets 573,270 528,860 498,450 5,474,540 4,096,149 3,661,848 27 28 Liabilities and Shareholders' Equity 29 30 Current Liabilities 31 Accounts Payable 32 Salaries Payable 33 Interest Payable 34 Current Maturities of Long-Term Debt 35 Lease Payable - Short Term 36 Total Current Liabilities 190,000 155,000 160,000 55,000 50,000 32,000 25,000 45,000 25,000 145,000 40,000 145,000 145,000 250,000 50,000 250,000 50,000 500,000 277,000 230,000 230,000 935,000 500,000 945,000 695,000 500,000 37 38 Long-Term Liabilities 39 Notes Payable 75,000 75,000 75,000 5,000,000 40 Bonds Payable 41 Lease Payable - Long Term 42 Total Long-Term Liabilities 75,000 75,000 75,000 2,500,000 2,743,128 2,337,737 7,742,138 2,337,737 43 44 Shareholders' Equity 45 Membership Shares (no par, 100 shares authorized, 5 shares iss 5,000 46 Retained Earnings 226,770 5,000 218,860 47 Total Shareholders' Equity 231,770 48 Total Liabilities and Shareholders' Equity 583,770 223,860 528,860 5,000 7,000 2,000,000 198,450 219,540 196,576 203,450 226,540 2,196,576 508,450 3,661,540 10,884,704 7,000 178,477 185.477 3,218,214 49 50 51 52 53 54 > Balance Sheet Income Statement Ratio Analysis + Ready Accessibility: Good to go 76°F Sunny Q Search M N о P . m 100% 11:37 AM 4/26/2025 寧 ☑AutoSave corrected ACC 620 template ⚫ Saved O Search File Home Insert Page Layout Formulas Data Review View Help Aptos Narrow 12 Α' Α' ab Wrap Text General Paste B I U ▾ Merge & Center $ % 9 ←.0 .00 .000 ☑ Clipboard ✓ ✓ ✓ fx v Font ☑ Alignment N Number N TL ☑ Comments Share > Autosum |☐ ☐ Fill Conditional Format as Formatting Table Cell Styles ▾ Insert Delete Format Clear Sort & Find & Filter Select Add-ins Analyze Copilot Data Styles Cells Editing Add-ins 127 A B D F G H 1 2 3 4 Rebel Dog Coffee Balance Sheet (000's) Year 1 Year 2 Year 3 Year 4 Year 5 Fcst Year 6 Fcst Assets 5 6 Current Assets 7 Cash 8 9 10 11 12 13 14 15 16 Accounts Receivable (Net) Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment Land Buildings Machinery 125,000 100,000 105,000 9,500 8,000 5,095,000 5,000 2,097,000 97,000 5,000 5,000 25,000 15,000 28,000 25,000 38,000 38,000 38,000 12,000 10,000 15,000 15,000 15,000 165,000 149,500 148,000 5,153,000 155,000 155,000 100,000 100,000 100,000 100,000 250,000 250,000 250,000 125,000 125,000 125,000 17 Subtotal 475,000 475,000 475,000 250,000 125,000 475,000 100,000 100,000 250,000 250,000 125,000 125,000 475,000 475,000 18 19 Less: Accumulated Depreciation - Land (10,000) 20 Less: Accumulated Depreciation - Buildings (19,230) 21 Less: Accumulated Depreciation - Machinery (37,500) 22 Net Property, Plant, and Equipment 408,270 (20,000) (30,000) (40,000) (50,000) (60,000) (25,640) (32,050) (38,460) (44,870) (51,280) (50,000) (62,500) (75,000) (87,500) (100,000) 379,360 350,450 321,540 292,630 263,720 23 24 Leases - Right of Use Asset 3,648,519 3,243,128 25 26 Total Assets 573,270 528,860 498,450 5,474,540 4,096,149 3,661,848 27 28 Liabilities and Shareholders' Equity 29 30 Current Liabilities 31 Accounts Payable 32 Salaries Payable 33 Interest Payable 34 > Current Maturities of Long-Term Debt Balance Sheet Ready Accessibility: Good to go Income Statement 190,000 155,000 160,000 55,000 50,000 45,000 32,000 25,000 25,000 145,000 40,000 250,000 145,000 145,000 50,000 250,000 50,000 Ratio Analysis + 76°F Sunny Search J K M N о P 100% 11:37 AM & 4/26/2025
☑AutoSave corrected ACC 620 template ⚫ Saved O Search File Home Insert Page Layout Formulas Data Review View Help ŏ Aptos Narrow 12 Α' Α' ab Wrap Text General Paste B I U ▾ A ▾ Merge & Center $ % 9 ←.0 .000 .00 127 Clipboard ✓ ✓ ✓ fx v ☑ Font Alignment N Number N TL ☑ Comments Share > Autosum |☐ ☐ Conditional Format as Cell Insert Delete Format Formatting Table Styles ▾ Fill▾ Clear ▾ Sort & Find & Filter Select Add-ins Analyze Copilot Data Styles Cells Editing Add-ins A B D E 21 22 Less: Accumulated Depreciation - Machinery Net Property, Plant, and Equipment (37,500) 408,270 (50,000) 379,360 F (62,500) 350,450 G (75,000) 321,540 H | (87,500) (100,000) 292,630 263,720 J K 23 24 Leases - Right of Use Asset 3,648,519 3,243,128 25 26 Total Assets 573,270 528,860 498,450 5,474,540 4,096,149 3,661,848 27 28 Liabilities and Shareholders' Equity 29 30 Current Liabilities 31 Accounts Payable 32 Salaries Payable 33 Interest Payable 34 Current Maturities of Long-Term Debt 35 Lease Payable - Short Term 36 Total Current Liabilities 190,000 155,000 160,000 55,000 50,000 32,000 25,000 45,000 25,000 145,000 40,000 145,000 145,000 250,000 50,000 250,000 50,000 500,000 277,000 230,000 230,000 935,000 500,000 945,000 695,000 500,000 37 38 Long-Term Liabilities 39 Notes Payable 75,000 75,000 75,000 5,000,000 40 Bonds Payable 41 Lease Payable - Long Term 42 Total Long-Term Liabilities 75,000 75,000 75,000 2,500,000 2,743,128 2,337,737 7,742,138 2,337,737 43 44 Shareholders' Equity 45 Membership Shares (no par, 100 shares authorized, 5 shares iss 5,000 46 Retained Earnings 226,770 5,000 218,860 47 Total Shareholders' Equity 231,770 48 Total Liabilities and Shareholders' Equity 583,770 223,860 528,860 5,000 7,000 2,000,000 198,450 219,540 196,576 203,450 226,540 2,196,576 508,450 3,661,540 10,884,704 7,000 178,477 185.477 3,218,214 49 50 51 52 53 54 > Balance Sheet Income Statement Ratio Analysis + Ready Accessibility: Good to go 76°F Sunny Q Search M N о P . m 100% 11:37 AM 4/26/2025 寧 ☑AutoSave corrected ACC 620 template ⚫ Saved O Search File Home Insert Page Layout Formulas Data Review View Help Aptos Narrow 12 Α' Α' ab Wrap Text General Paste B I U ▾ Merge & Center $ % 9 ←.0 .00 .000 ☑ Clipboard ✓ ✓ ✓ fx v Font ☑ Alignment N Number N TL ☑ Comments Share > Autosum |☐ ☐ Fill Conditional Format as Formatting Table Cell Styles ▾ Insert Delete Format Clear Sort & Find & Filter Select Add-ins Analyze Copilot Data Styles Cells Editing Add-ins 127 A B D F G H 1 2 3 4 Rebel Dog Coffee Balance Sheet (000's) Year 1 Year 2 Year 3 Year 4 Year 5 Fcst Year 6 Fcst Assets 5 6 Current Assets 7 Cash 8 9 10 11 12 13 14 15 16 Accounts Receivable (Net) Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment Land Buildings Machinery 125,000 100,000 105,000 9,500 8,000 5,095,000 5,000 2,097,000 97,000 5,000 5,000 25,000 15,000 28,000 25,000 38,000 38,000 38,000 12,000 10,000 15,000 15,000 15,000 165,000 149,500 148,000 5,153,000 155,000 155,000 100,000 100,000 100,000 100,000 250,000 250,000 250,000 125,000 125,000 125,000 17 Subtotal 475,000 475,000 475,000 250,000 125,000 475,000 100,000 100,000 250,000 250,000 125,000 125,000 475,000 475,000 18 19 Less: Accumulated Depreciation - Land (10,000) 20 Less: Accumulated Depreciation - Buildings (19,230) 21 Less: Accumulated Depreciation - Machinery (37,500) 22 Net Property, Plant, and Equipment 408,270 (20,000) (30,000) (40,000) (50,000) (60,000) (25,640) (32,050) (38,460) (44,870) (51,280) (50,000) (62,500) (75,000) (87,500) (100,000) 379,360 350,450 321,540 292,630 263,720 23 24 Leases - Right of Use Asset 3,648,519 3,243,128 25 26 Total Assets 573,270 528,860 498,450 5,474,540 4,096,149 3,661,848 27 28 Liabilities and Shareholders' Equity 29 30 Current Liabilities 31 Accounts Payable 32 Salaries Payable 33 Interest Payable 34 > Current Maturities of Long-Term Debt Balance Sheet Ready Accessibility: Good to go Income Statement 190,000 155,000 160,000 55,000 50,000 45,000 32,000 25,000 25,000 145,000 40,000 250,000 145,000 145,000 50,000 250,000 50,000 Ratio Analysis + 76°F Sunny Search J K M N о P 100% 11:37 AM & 4/26/2025
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 2.7C
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Question
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I am having trouble getting the balance sheet to balance.
Additional information:
Loan and Company Information
• The new facility would be a 10-year lease beginning on 01/01/202X and ending on 12/31/203X. The annual payments are $500,000 with a discount rate of 5% and no annual rate increase. The CFO has verified that this would be treated as a lease under ASC 842 guidance.
o Present value of annuity due of $1: n=10, i = 5% is 8.10782
• An additional cash investment of $5 million is needed to support the purchase of inventory, cups, and packaging. The bank has pre-approved Rebel Dog Coffee for the loan for a term of 24 months at an interest rate of 5%, to be repaid in a balloon payment in the final month of the loan.
o The following are the required debt covenants that Rebel Dog must carry: general, fire, theft, and destruction insurance on the inventory.
o Rebel Dog must also maintain a positive credit rating during the loan.
• Rebel Dog’s LLC founding members have decided to admit an additional restricted nonparticipating member by means of sale for $2 million.
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$ % 9
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127
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☑
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N
Number
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TL
☑
Comments
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Conditional Format as
Cell
Insert Delete Format
Formatting Table
Styles ▾
Fill▾
Clear ▾
Sort & Find &
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Data
Styles
Cells
Editing
Add-ins
A
B
D
E
21
22
Less: Accumulated Depreciation - Machinery
Net Property, Plant, and Equipment
(37,500)
408,270
(50,000)
379,360
F
(62,500)
350,450
G
(75,000)
321,540
H
|
(87,500) (100,000)
292,630 263,720
J
K
23
24
Leases - Right of Use Asset
3,648,519 3,243,128
25
26
Total Assets
573,270
528,860
498,450 5,474,540
4,096,149 3,661,848
27
28
Liabilities and Shareholders' Equity
29
30
Current Liabilities
31
Accounts Payable
32
Salaries Payable
33
Interest Payable
34
Current Maturities of Long-Term Debt
35
Lease Payable - Short Term
36
Total Current Liabilities
190,000
155,000
160,000
55,000
50,000
32,000
25,000
45,000
25,000
145,000
40,000
145,000 145,000
250,000
50,000
250,000
50,000
500,000
277,000
230,000
230,000
935,000
500,000
945,000 695,000
500,000
37
38
Long-Term Liabilities
39
Notes Payable
75,000
75,000
75,000
5,000,000
40
Bonds Payable
41
Lease Payable - Long Term
42
Total Long-Term Liabilities
75,000
75,000
75,000 2,500,000
2,743,128 2,337,737
7,742,138 2,337,737
43
44
Shareholders' Equity
45
Membership Shares (no par, 100 shares authorized, 5 shares iss
5,000
46
Retained Earnings
226,770
5,000
218,860
47
Total Shareholders' Equity
231,770
48
Total Liabilities and Shareholders' Equity
583,770
223,860
528,860
5,000
7,000 2,000,000
198,450 219,540 196,576
203,450 226,540 2,196,576
508,450 3,661,540 10,884,704
7,000
178,477
185.477
3,218,214
49
50
51
52
53
54
>
Balance Sheet
Income Statement
Ratio Analysis
+
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N
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.
m
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11:37 AM
4/26/2025
寧
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✓ ✓ ✓ fx v
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☑
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127
A
B
D
F
G
H
1
2
3
4
Rebel Dog Coffee
Balance Sheet (000's)
Year 1
Year 2
Year 3
Year 4
Year 5 Fcst Year 6 Fcst
Assets
5
6
Current Assets
7
Cash
8
9
10
11
12
13
14
15
16
Accounts Receivable (Net)
Inventory
Prepaid Expenses
Total Current Assets
Property, Plant, and Equipment
Land
Buildings
Machinery
125,000
100,000
105,000
9,500
8,000
5,095,000
5,000
2,097,000
97,000
5,000
5,000
25,000
15,000
28,000
25,000
38,000
38,000
38,000
12,000
10,000
15,000
15,000
15,000
165,000
149,500
148,000 5,153,000
155,000 155,000
100,000
100,000
100,000
100,000
250,000
250,000
250,000
125,000
125,000
125,000
17
Subtotal
475,000
475,000
475,000
250,000
125,000
475,000
100,000 100,000
250,000 250,000
125,000 125,000
475,000 475,000
18
19
Less: Accumulated Depreciation - Land
(10,000)
20
Less: Accumulated Depreciation - Buildings
(19,230)
21
Less: Accumulated Depreciation - Machinery
(37,500)
22
Net Property, Plant, and Equipment
408,270
(20,000) (30,000) (40,000) (50,000) (60,000)
(25,640) (32,050) (38,460) (44,870) (51,280)
(50,000) (62,500) (75,000) (87,500) (100,000)
379,360
350,450 321,540 292,630 263,720
23
24
Leases - Right of Use Asset
3,648,519 3,243,128
25
26
Total Assets
573,270
528,860
498,450 5,474,540 4,096,149 3,661,848
27
28
Liabilities and Shareholders' Equity
29
30
Current Liabilities
31
Accounts Payable
32
Salaries Payable
33
Interest Payable
34
>
Current Maturities of Long-Term Debt
Balance Sheet
Ready Accessibility: Good to go
Income Statement
190,000
155,000
160,000
55,000
50,000
45,000
32,000
25,000
25,000
145,000
40,000
250,000
145,000 145,000
50,000
250,000
50,000
Ratio Analysis
+
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