Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,000 Accounts receivable 17,500 26,000 Allowance for doubtful accounts $3,000 $4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accumulated depreciation-equipment 24,000 11,000 Notes payable 18,000 15,000 Accounts payable 22,000 31,000 Sorensen, capital 36,000 24,000 Lucas, capital $103,000 $103,000 $85,400 $85,400 Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company $17,500 $26,000 Accounts receivable 4,500 4,000 Allowance for doubtful accounts 28,000 20,000 Inventory 25,000 15,000 Equipment All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,000 Accounts receivable 17,500 26,000 Allowance for doubtful accounts $3,000 $4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accumulated depreciation-equipment 24,000 11,000 Notes payable 18,000 15,000 Accounts payable 22,000 31,000 Sorensen, capital 36,000 24,000 Lucas, capital $103,000 $103,000 $85,400 $85,400 Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company $17,500 $26,000 Accounts receivable 4,500 4,000 Allowance for doubtful accounts 28,000 20,000 Inventory 25,000 15,000 Equipment All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

Name: Sorensen CompanyLucas CompanyDr.Cr.Dr.Cr.Cash$14,000$12,000Accounts r
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Description: Sorensen CompanyLucas CompanyDr.Cr.Dr.Cr.Cash$14,000$12,000Accounts receivable17,50026,000Allowance for doubtful accounts$3,000$4,400Inventory26,50018,400Equipment45,00029,000Accumulated depreciation-equipment24,00011,000Notes payable18,00015,00022,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A/C Name Trial Balance DR CR Cash 560,000 Accounts receivable 3,710,000 Allowance for bad debt 290,000 Merchandise Inventory 2,580,000 Store Supplies 1,300,000 Prepaid Insurance 2,775,000 Prepaid rent 1,000,000 Furniture 2,650,000 Accumulated deprecation-Furniture 2,080,000 Machinery 1,800,000 Accumulated depreciation- Machinery 1,328,141 Accounts payable 630,000 Salary payable Interest payable Unearned Sales revenue 800,000 Note Payable, long term 2,500,000 Patty Patterson, Capital 5,200,000 Patty Patterson, Withdrawals 280,000 Sales revenue 22,726,859 Sales discount 1,200,000 Sales returns and allowances 800,000 Cost of goods sold 8,100,000 Salaries expense…
Please answer iv,v and vi. Thanks
TRANSACTION IMr. U contributed 600,000 Obtain loan 400,000 3Purchased Inventory 200,000 cash basis Purchased Inventory 500,000 on account 4. 5Sold 900,000 on account. Cost of items is 400,000 Paid accounts payable 400,000 7Collected 500,000 accounts receivable 6. 8. purchased equipment 480,000 cash 9. distributed cash to Mr. U 10,000 10 paid loan interest 5,000 Chart of Accounts CHART OF ACCOUNTS Prepare the following: 1. Transaction Matrix 2. Trial Balance CODE Account Title 101 CASH 102 ACCOUNTS RECEIVABLE 103 INVENTORY 3. Journal entries 4. Leger 104 EQUIPMENT 201 ACCOUNTS PAYABLE 202 LOAN U, DRAWINGS U, CAPITAL 301 302 401 SALES 402 COGS 403 INTEREST EXPENSE
Please answer i, ii, iii. Thanks
Do the posting t-accounts
Camaro GTO Torino Cash $ 2,400 $ 230 $ 1,300 Short-term investments 0 0 600 Current receivables 260 510 500 Inventory 2,175 2,020 3,050 Prepaid expenses 300 600 900 Total current assets $ 5,135 $ 3,360 $ 6,350 Current liabilities $ 2,220 $ 1,320 $ 3,550 a. Compute the acid-test ratio for each of the separate cases above.b. Which company is in the best position to meet short-term obligations?
A/C DR CR Cash 560,000 Accounts Receivbales 3,710,000 Allowance for Bad Debt 290,000 Merchandise Inventory 2,580,000 Store Supplies 1,300,000 Prepaid Insurance 2,775,000 Prepaid Rent 1,000,000 Furniture 2,650,000 Accu Depc'n Furniture 2,080,000 Machinery 1,800,000 Accu Depc'n Machinery 1,328,141 Accounts Payable 630,000 Salary Payable Interest Payable Unearned Sales Revenue 800,000 Note Payable Long Term 2,500,000 Patty Patterson Capital 5,200,000 Patty Person Withdrawals 280,000 Sales Revenue 22,726,859 Sales Count 1,200,000 Sales Returns and Allowances 800,000 Cost of Goods Sold 8,100,000 Salaries Expense 7,270,000 Insurance Expense Utilities Expense 580,000 Rent Expense 950,000 Depc'n Expense - Furniture Depc'n Expense Machinery Store Supplies Expense Gain on Disposal Machinery Bad-Dept Expense Interest Expense 35.555,000…
Dr. Cr. Cash Accounts receivable Allowance for Doubtful Accts Inventory Equipment Accumulated Depreciation Accounts Payable 65,000 28,000 7,000 12,500 60,000 12,750 23,000 6,000 35,000 38,000 21,000 Unearned Revenue Long Term Note Payable Common Stock Retained Earnings Dividends Sales Cost of goods sold Repairs expense Salaries expense Depreciation expense Insurance expense Interest income Interest expense Income tax expense Total 10,000 130,000 52,000 6,500 25,000 3,000 4,500 1,250 4,000 3,500 274,000 274,000 What is the amount of Total Assets?
Cash $ 35,000 Accounts Receivable 65,000 Finished Goods 120,000 Work in Process 58,683 Materials 14,000 Building 580,000 Accum. Deprec.—Building $ 43,500 Factory Equipment 440,000 Accum. Deprec.—Factory Equipment 110,000 Office Equipment 90,000 Accum. Deprec.—Office Equipment 33,750 Accounts Payable 85,000 Notes Payable 100,000 Capital Stock 470,000 Retained Earnings 560,433 Total $1,402,683 $1,402,683 During the month of August, the following transactions took place: a. Purchased raw materials at a cost of $55,000 and general factory supplies at a cost of $18,000 on account. (NOTE: Materials account includes both materials and supplies.) b. Issued raw material to be used in production, costing $45,500, and miscellaneous factory supplies, $13,500. c. Recorded the payroll, the payment to the…
Total 213 500 Monaro Motors Cash and credit sales in the General Ledger Capital contribution of $10 000 stock (agreed value) and $30 000 cash Purchased prem ises worth $150 000 paying a $10 000 cash deposit with the balance funded by a mortgage from QV Bank Cash sale of parts for $400 (cost price $200) Paid $2 500 cash to Wilson Fittings for shelv ing Purchased stock on credit from HolFord Parts for $2 600 Sold parts on credit to Lemon Rentals for $900 (cost price $450) 7. Aug. 1 Paid wages of apprentice $600 8. Kim Swood took home stock worth $1 500 6. Received $500 cash from Lemon Rentals Analysing Chart an A Date Accounts affected Classification Increase/ Debit Credit (A/L/Oe/R/E) Decrease Bank capital 24 2$ Aug 1. Asset awner'sequity Decreave Increase
answered Accounts Dr Marked out of Cash OMR 50,000 2.00 Accounts receivable 20,000 P Flag question Supplies 10,000 Prepaid expenses 12,000 Buildings-at cost 160,000 10,000 Accumulated depreciation - Buildings 30,000 Notes payable (due in 2 months) 30,000 Accounts payable 12,000 Interest payable 10,000 Unearned service revenue 120,000 Shared- Capital 100,000 Service revenues 40,000 Salaries Expenses 10,000 Depreciation Expenses 30,000 Utilities Expenses 10,000 Dividends / drawings 342,000 342,000 Total If this information was used to prepare a statement of financial position, Total Liabilities should be: Cull lis islO
Post Company Sign Company Item Debit Credit Debit Credit Cash 10,000 15,000 Accounts Receivable 33,000 20,000 Inventory 260,000 80,000 Land 80,000 80,000 Buildings and Equipment 500,000 150,000 Investment in Sign Company 215,000 Cost of Goods Sold 120,000 50,000 Depreciation Expense 25,000 15,000 Other Expenses 15,000 5,000 Dividends Declared 30,000 10,000 Accumulated Depreciation 205,000 105,000 Accounts Payable 40,000 20,000 Notes Payable 200,000 50,000 Common Stock 300,000 100,000 Retained Earnings 318,000 50,000 Sales 200,000 100,000 Income from Sign Company 25,000 $ 1,288,000 $ 1,288,000 $ 425,000 $ 425,000 Additional Information: 1. Post Company acquired 100 percent ownership of Sign Company on January 1, 20X8 for $200,000. The book value of Sign's net assets at acquisition was $150,000. 2. The book value and fair values of Sign's assets and liabilities were equal, except for Sign's buildings and equipment, which were worth $50,000 more than book value. Buildings and equipment…