The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: JORDAN CORPORATION Balance Sheet As of December 31, Year 4 Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 40,000 ? 306,000 $444,000 Liabilities and Stockholders'. Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings 2$ 40,000 312,000 Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percent Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 60% 30% 10.4 times $390,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Answer full question.
Required
a. Compute the balance in trade accounts payable as of December 31, Year 4.
b. Compute the balance in retained earnings as of December 31, Year 4.
c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change
from last year.)
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round
your answers to the nearest whole dollar amount.)
a.
Accounts payable
b. Retained earnings
c. Inventory
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Transcribed Image Text:Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of inventory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Accounts payable b. Retained earnings c. Inventory Prev 1 of 2 Next >
The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's
balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
JORDAN CORPORATION
Balance Sheet As of December 31, Year 4
Assets
$ 40,000
Cash
Accounts receivable (net)
Inventory
Property, plant, and equipment (net)
306,000
$444,000
Liabilities and Stockholders'. Equity
Accounts payable (trade)
Income taxes payable (current)
Long-term debt
Common stock
Retained earnings
?
40,000
312,000
$
Additional Information
Current ratio (at year end)
Total liabilities + Total stockholders' equity
Gross margin percent
Inventory turnover (Cost of goods sold + Ending inventory)
Gross margin for Year 4
1.5 to 1.0
60%
30%
10.4 times
$390,000
Transcribed Image Text:The December 31, Year 4, balance sheet for Jordan Corporation is presented here. These are the only accounts on Jordan's balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information: JORDAN CORPORATION Balance Sheet As of December 31, Year 4 Assets $ 40,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) 306,000 $444,000 Liabilities and Stockholders'. Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings ? 40,000 312,000 $ Additional Information Current ratio (at year end) Total liabilities + Total stockholders' equity Gross margin percent Inventory turnover (Cost of goods sold + Ending inventory) Gross margin for Year 4 1.5 to 1.0 60% 30% 10.4 times $390,000
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