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 $680,000 and total liabilities of $290,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $160,000 cash. b. Borrowed $151,000 cash from the bank and signed a 10-year note. c. Built an addition on the buildings for $294,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $37,000, paying $3,700 in cash and signing a note for the balance due in two years. e. Returned a $3,700 piece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable. f. Purchased a delivery truck (equipment) for $11,000; paid $7,700 cash and signed a two-year note for the remainder. g. A stockholder sold $5,850 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? Lination hy entering your answers in the tabs below. 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, liabilit end of year. 4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass stockholders' equity? 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 ar 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 4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass stockholders' equity? Complete this question by entering your answers in the tabs below. Required Required 3 Required 4 Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any dec with a minus sign.) Assets . . Liabilities + Notes Payable Stockholders' Equity Common Retained Stock Earnings Cash Equipment Buildings a. + 160,000 b. = + M C. + B + d. = e. 1+ = + f. 0 0= 0+ 160,000 Panairad s 9 Change in Balances 160,000 160,000 Required 3 0

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Chapter1: Financial Statements And Business Decisions
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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 $680,000 and total liabilities of $290,000. During the current year, the following
summarized events occurred:
a. Issued additional shares of common stock for $160,000 cash.
b. Borrowed $151,000 cash from the bank and signed a 10-year note.
c. Built an addition on the buildings for $294,000 and paid cash to the contractor.
d. Purchased equipment for the new addition for $37,000, paying $3,700 in cash and signing a note for the balance due in two years.
e. Returned a $3,700 piece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable.
f. Purchased a delivery truck (equipment) for $11,000; paid $7,700 cash and signed a two-year note for the remainder.
g. A stockholder sold $5,850 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?
+Lination by entering your answers in the tabs below.
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, liabiliti
end of year.
4. As of the.current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass
stockholders' equity?
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 an
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 >
1 of 8
< Required 1
< Prev
www
***
Ne
4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass
stockholders' equity?
Complete this question by entering your answers in the tabs below.
Required I
Required 3
Required 4
Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any dec
with a minus sign.)
Assets
Equipment
Liabilities +
Notes
Payable
Buildings
+
Cash
160,000
Stockholders' Equity
Common Retained
Stock Earnings
160,000
a.
b.
C.
+
d.
+
e.
f.
g.
Change in
Balances
160,000
0
160,000
=
1=T
=
-1
Check
0=
Penuized
+
+
0+
Required 3
< Prev
0
Nex
www
1 of 8
MacBook Pro
Transcribed Image Text:bok 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 $680,000 and total liabilities of $290,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $160,000 cash. b. Borrowed $151,000 cash from the bank and signed a 10-year note. c. Built an addition on the buildings for $294,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $37,000, paying $3,700 in cash and signing a note for the balance due in two years. e. Returned a $3,700 piece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable. f. Purchased a delivery truck (equipment) for $11,000; paid $7,700 cash and signed a two-year note for the remainder. g. A stockholder sold $5,850 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? +Lination by entering your answers in the tabs below. 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, liabiliti end of year. 4. As of the.current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass stockholders' equity? 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 an 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 > 1 of 8 < Required 1 < Prev www *** Ne 4. As of the current year-end, has the financing for Mallard Incorporated's (MI's) investment in ass stockholders' equity? Complete this question by entering your answers in the tabs below. Required I Required 3 Required 4 Complete the spreadsheet that follows. The first transaction is used as an example. (Enter any dec with a minus sign.) Assets Equipment Liabilities + Notes Payable Buildings + Cash 160,000 Stockholders' Equity Common Retained Stock Earnings 160,000 a. b. C. + d. + e. f. g. Change in Balances 160,000 0 160,000 = 1=T = -1 Check 0= Penuized + + 0+ Required 3 < Prev 0 Nex www 1 of 8 MacBook Pro
!
Required information
PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the
Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Trisha's Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and
abroad. The following is adapted from Trisha's Allen's June 30, 2019, trial balance. (The amounts shown represent millions
of dollars.)
Accounts Payable
$ 140
Accounts Receivable
20
120
Cash
Common Stock
35
Equipment
325
Inventory
156
185
Notes Payable (long-term)
Notes Payable (short-term)
Prepaid Rent
4
37
Retained Earnings
349
30
Salaries and Wages Payable
Software
85
Assume that the following events occurred in the following quarter.
a. Paid $20 cash for additional inventory.
b. Issued additional shares of common stock for $15 in cash.
c. Purchased equipment for $190; paid $90 in cash and signed a note to pay the remaining $100 in two years.
d. Signed a short-term note to borrow $11 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $42.
2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with
a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Stockholders'
Assets
Liabilities
+
Equity
Common
Stock
Cash
Notes Payable Notes Payable
(short-term)
Inventory Equipment =
+
(long-term)
=
=
=
=
a.
b.
C.
d.
e.
+
+
+
+
+
Transcribed Image Text:! Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Trisha's Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Trisha's Allen's June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable $ 140 Accounts Receivable 20 120 Cash Common Stock 35 Equipment 325 Inventory 156 185 Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent 4 37 Retained Earnings 349 30 Salaries and Wages Payable Software 85 Assume that the following events occurred in the following quarter. a. Paid $20 cash for additional inventory. b. Issued additional shares of common stock for $15 in cash. c. Purchased equipment for $190; paid $90 in cash and signed a note to pay the remaining $100 in two years. d. Signed a short-term note to borrow $11 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $42. 2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Stockholders' Assets Liabilities + Equity Common Stock Cash Notes Payable Notes Payable (short-term) Inventory Equipment = + (long-term) = = = = a. b. C. d. e. + + + + +
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