Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year, the accounting records reflected total assets of $580,000 and total liabilities of $240,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $110,000 cash. b. Borrowed $133,000 cash from the bank and signed a 10-year note. c. Built an addition on the buildings for $216,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $32,500, paying $3,250 In cash and signing a note for the balance due in two years. e. Returned a $3,250 plece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable. f. Purchased a delivery truck (equipment) for $21,000; paid $14,700 cash and signed a two-year note for the remainder. g. A stockholder sold $6,400 of his stock In Mallard Incorporated to his neighbor. Required: 1. Complete the spreadsheet that follows. The first transaction is used as an example. 3. Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the end of year. 4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) Investment in assets primarily come from liabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities + Stockholders' Equity Cash Equipment Buildings Notes Payable Common Retained Stock Earnings 110,000 a. b. 110,000 Required 3 > C. d. e. 1. 9 Change in Balances 110,000 110,000 0-
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year, the accounting records reflected total assets of $580,000 and total liabilities of $240,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $110,000 cash. b. Borrowed $133,000 cash from the bank and signed a 10-year note. c. Built an addition on the buildings for $216,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $32,500, paying $3,250 In cash and signing a note for the balance due in two years. e. Returned a $3,250 plece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable. f. Purchased a delivery truck (equipment) for $21,000; paid $14,700 cash and signed a two-year note for the remainder. g. A stockholder sold $6,400 of his stock In Mallard Incorporated to his neighbor. Required: 1. Complete the spreadsheet that follows. The first transaction is used as an example. 3. Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the end of year. 4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) Investment in assets primarily come from liabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 4 Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities + Stockholders' Equity Cash Equipment Buildings Notes Payable Common Retained Stock Earnings 110,000 a. b. 110,000 Required 3 > C. d. e. 1. 9 Change in Balances 110,000 110,000 0-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PA2-1 (Algo) Determining Financial Statement Effects of Various Transactions [LO 2-1, LO 2-2, LO 2-5]
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service
department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year,
the accounting records reflected total assets of $580,000 and total liabilities of $240,000. During the current year, the following
summarized events occurred:
a. Issued additional shares of common stock for $110,000 cash.
b. Borrowed $133,000 cash from the bank and signed a 10-year note.
c. Built an addition on the buildings for $216,000 and paid cash to the contractor.
d. Purchased equipment for the new addition for $32,500, paying $3,250 In cash and signing a note for the balance due in two years.
e. Returned a $3,250 plece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable.
f. Purchased a delivery truck (equipment) for $21,000; paid $14,700 cash and signed a two-year note for the remainder.
g. A stockholder sold $6,400 of his stock In Mallard Incorporated to his neighbor.
Required:
1. Complete the spreadsheet that follows. The first transaction is used as an example.
3. Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the
end of year.
4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) Investment in assets primarily come from liabilities or
stockholders' equity?
Complete this question by entering your answers in the tabs below.
Required 1 Required 3
Required 4
Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any decreases to account balances
with a minus sign.)
Assets
= Liabilities +
Notes
Payable
Stockholders' Equity
Common Retained
Stock
Earnings
+
Equipment Buildings -
Cash
110,000
+
110,000
a.
E
b.
=
110,000
110,000
01
Required 3 >
C.
d.
e.
1.
9.
Change in
Balances
= |
=
-
0 =
< Required 1
W
+
+
+
+1
+
+
+
0 +
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Transcribed Image Text:PA2-1 (Algo) Determining Financial Statement Effects of Various Transactions [LO 2-1, LO 2-2, LO 2-5]
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service
department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year,
the accounting records reflected total assets of $580,000 and total liabilities of $240,000. During the current year, the following
summarized events occurred:
a. Issued additional shares of common stock for $110,000 cash.
b. Borrowed $133,000 cash from the bank and signed a 10-year note.
c. Built an addition on the buildings for $216,000 and paid cash to the contractor.
d. Purchased equipment for the new addition for $32,500, paying $3,250 In cash and signing a note for the balance due in two years.
e. Returned a $3,250 plece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable.
f. Purchased a delivery truck (equipment) for $21,000; paid $14,700 cash and signed a two-year note for the remainder.
g. A stockholder sold $6,400 of his stock In Mallard Incorporated to his neighbor.
Required:
1. Complete the spreadsheet that follows. The first transaction is used as an example.
3. Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' equity at the
end of year.
4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) Investment in assets primarily come from liabilities or
stockholders' equity?
Complete this question by entering your answers in the tabs below.
Required 1 Required 3
Required 4
Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any decreases to account balances
with a minus sign.)
Assets
= Liabilities +
Notes
Payable
Stockholders' Equity
Common Retained
Stock
Earnings
+
Equipment Buildings -
Cash
110,000
+
110,000
a.
E
b.
=
110,000
110,000
01
Required 3 >
C.
d.
e.
1.
9.
Change in
Balances
= |
=
-
0 =
< Required 1
W
+
+
+
+1
+
+
+
0 +
www
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 3 Required 4
Based on beginning balances plus the completed spreadsheet, provide the Total assets, liabilities and stockholders' eau
the end of year.
Amount
a. Total assets at the end of the year.
b. Total liabilities at the end of the year.
c. Total stockholders' equity at the end of the year.
Required 4 >
< Required 1
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