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the numbers already entered in it. Would you be will- ing to prepare balance sheets for me? Also, any com-

the numbers already entered in it. Would you be will- ing to prepare balance sheets for me? Also, any com-

FINANCIAL ACCOUNTING
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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Case 2-1 Maynard Company (A)* Diane Maynard made the following request of a friend: owned all the stock of Maynard Company. At the end of June, Diane Maynard paid herself an $11,700 divi- dend and used the money to repay her loan from the My bookkeeper has quit, and I need to see the balance sheets of my company. He has left behind a book with the numbers already entered in it. Would you be will- ing to prepare balance sheets for me? Also, any com- ments you care to make about the numbers would be apprecinted. The Cash account is healthy, which is a good sign, and he has told me that the net inconse in June was S19,635. company. Questions 2. Make comments about how the financial condition as of the end of June compared with that at the be- ginning of June. The book contained a detailed record of transac- tions, and from it the friend was able to copy off the balanoes at the beginning of the month and at the end of the month as shown in Exhibit 1. Diane Maynard Professor Robert N. Anthony. EXHIBIT 1 Account Balances June 1 $ 8,517 21,798 1,974 156,000 5,304 8,385 585,000 390,000 34,983 13,260 89,700 29,835 11,700 4,857 2,451 3,150 221,511 5,559 5,700 June 30 $ 21,315 26,505 2,202 157,950 5,928 29,250 585,000 390,000 66,660 36,660 89,700 26,520 Accounts payable Accounts receivable Accrued wages payable Accumulated depreciation on building Accumulated depreciation on equipment Bank notes payable Building Capital stock Cash Equipment (at cost) Land Merchandise inventory Note receivable, Diane Maynard 5,265 2,451 2,826 229,446 6,630 7,224 Other noncurrent assets Other noncurrent liabilities Prepaid insurance Retained earnings Supplies on hand Taxes payable
Transcribed Image Text:Case 2-1 Maynard Company (A)* Diane Maynard made the following request of a friend: owned all the stock of Maynard Company. At the end of June, Diane Maynard paid herself an $11,700 divi- dend and used the money to repay her loan from the My bookkeeper has quit, and I need to see the balance sheets of my company. He has left behind a book with the numbers already entered in it. Would you be will- ing to prepare balance sheets for me? Also, any com- ments you care to make about the numbers would be apprecinted. The Cash account is healthy, which is a good sign, and he has told me that the net inconse in June was S19,635. company. Questions 2. Make comments about how the financial condition as of the end of June compared with that at the be- ginning of June. The book contained a detailed record of transac- tions, and from it the friend was able to copy off the balanoes at the beginning of the month and at the end of the month as shown in Exhibit 1. Diane Maynard Professor Robert N. Anthony. EXHIBIT 1 Account Balances June 1 $ 8,517 21,798 1,974 156,000 5,304 8,385 585,000 390,000 34,983 13,260 89,700 29,835 11,700 4,857 2,451 3,150 221,511 5,559 5,700 June 30 $ 21,315 26,505 2,202 157,950 5,928 29,250 585,000 390,000 66,660 36,660 89,700 26,520 Accounts payable Accounts receivable Accrued wages payable Accumulated depreciation on building Accumulated depreciation on equipment Bank notes payable Building Capital stock Cash Equipment (at cost) Land Merchandise inventory Note receivable, Diane Maynard 5,265 2,451 2,826 229,446 6,630 7,224 Other noncurrent assets Other noncurrent liabilities Prepaid insurance Retained earnings Supplies on hand Taxes payable
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