Provide correct solution and accounting Gordon Company was recently formed witha $5,000 investment in the company byshareholders. The company then borrowed$2,000 from a bank, purchased $1,000 ofsupplies on account, and also purchased$5,000 of equipment by paying $2,000 incash and signing a note for the balance.Based on these transactions, the company'stotal assets are:A. $7,000B. $9,000C. $11,000D. $12,000

Step 1: Define AssetsAssets in finance are goods, property, investments, and other economic…

Answered: Gordon Company was recently formed with…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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What is the total current assets?
Given the following account balances at year end, compute the total intangible assets on the balance sheet of Janssen Enterprises. Cash $1,500,000 Accounts Receivable 1,000,000 Trademarks 1,200,000 Goodwill 2,500,000 Research & Development Costs 2,000,000 a. $9,700,000. b. $5,700,000. c. $3,700,000. d. $7,700,000.
Use the information provided for Privett Company to answer the question that follow. Privett Company Accounts payable $30,000 Accounts receivable 35,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Notes payable (short-term) 20,000 Property, plant, and equipment 400,000 Prepaid expenses 2,000 Temporary investments 36,000 Based on the data for Privett Company, what is the amount of quick assets?
Level Ltd. has the following select account balances: Cash $20,000; Accounts Receivable $8,900; Equipment $60,000; Long-term Equity Investment $5,000; Accumulated Depreciation-Equipment $10,000; Supplies $1,000; Prepaid Insurance $2,400; Inventory $6,000; and Patents $10,000. What would be the total to be reported as non-current assets? O a. $66,000 O b. $71,000 O C. $65,000 O d. $72,000
DV's Pest Control Products has the following information available: net income, $15,000; cash provided by operations, $21,000; cash sales, $65,000; capital expenditures, $11,000; and dividends paid, $3,000. What is DV's free cash flow? O $18,000. O $1,000. O $10,000. O $7,000.
Strawbale, Incorporated purchases a $329,800 building, paying $228,000 in cash and signing a $101,800 promissory note. What will be reported on the statement of cash flows as a result of this transaction? Multiple Choice A $228,000 cash outflow from investing activities and a $101,800 noncash transaction A $329,800 cash outflow from investing activities A $228,000 cash outflow from investing activities and a $101,800 cash inflow from financing activities A $329,800 cash outflow from investing activities and a $101,800 cash inflow from financing activities
I need help on this problem. Pearce Enterprises reported the following information for the past year of operation: Transaction Free Cash Flow $250,000 Operating-cash-flow-to-current-liabilities raition 1.0 times Operating-cash-flow-to-capital-expenditures ratio 3.0 times a) Recorded credit sales of $9,000 b) Collected $4,000owed from customers c) Purchased $28,000 of equipment on long-term credit d) Purchased $16,000 of equipment for cash e) Paid $10,000 of wages with cash f) Recorded utility bill of $1,750 that has not been paid For each transaction, indicate whether the ratio will (I) Increase, (D) decrease, or (N) have no effect.
The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Fixed assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.
The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Current assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.
Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Round your answers to the nearest whole dollar.) (1) The loan to Small Co. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. RAINEY ENTERPRISES Horizontal Statements Model Assets Equity Income Statement Date Statement of Cash Flow Liabilities Notes Receivable Interest Retained Earnings Cash Receivable Revenue Expense Net Income 1.6/1/Y1 2. 1201/Y1 a. 6/1/Y2 (Adjusting entry) 6/1/Y2…
Melanie Corporation sold for $18,000 equipment that cost $40,000 and had a book value of $30,000. Melanie would report: Multiple Choice O O Operating cash inflows of $18,000. Financing cash inflows of $18,000. Operating cash inflows of $8,000. Investing cash inflows of $18,000.
Compute for the total current asset

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