Q1. The Bonita Vista Golf & Country Club details the following accounts in its financial statements.
Classify each of the following accounts as an asset, liability, stockholders’ equity, revenue, or expense item.
| CLASSIFY EACH ACCOUNT
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| Accounts payable
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| Accounts receivable
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| Equipment
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| Sales revenue
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| Service revenue
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| Inventory
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| Mortgage payable
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| Supplies expense
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| Rent expense
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| Salaries and wages expense
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Q2
This information relates to Metlock, Inc. for the year 2022
Retained earnings, January 1, 2022 $64,320
Advertising expense $1,728
Dividends $5,760
Rent expense $9,984
Service revenue $ 55,680
Utilities expense $2,304
Salaries and wages expense $28,800
- a) Prepare an income statement for the year ending December 31, 2022.
- b) Prepare a retained earnings statement for the year ending December 31, 2022. (List items that increase retained earnings first.)
Q3
The following information is available for Sandhill Inc.
Accounts receivable $2,352
Cash $6,125
Accounts payable $3,626
Supplies $3,683
Interest payable $572
Unearned service revenue $833
Salaries and wages expense $4,410
Service revenue $40,098
Notes payable $30,870
Salaries and wages payable $731
Common stock $49,686
Depreciation expense $4653
Inventory $2,785
Equipment (net) $106,036
Using the information above, prepare a balance sheet as of December 31, 2022. (Hint: Solve for the missing retained earnings amount.) (List Assets in order of liquidity.)Q4
Classify each of the following financial statement items taken from Ming Corporation’s balance sheet.
- a) Accounts payable –
(b) Accounts receivable –
(c) Accumulated depreciation—
(d) Buildings –
(e) Cash –
(f) Interest payable –
(g) Goodwill
(h) Income taxes payable –
(i) Inventory –
(j) Stock investments (to be sold in 7 months) –
(k) Land (in use) –
(l) Mortgage payable –
(m) Supplies –
(o) Prepaid rent –
Q5
These items are taken from the financial statements of Blossom Co. at December 31, 2022.
Buildings $94,640
Accounts receivable 10,000
Prepaid insurance 2,560
Cash 9,472
Equipment 65,920
Land 48,960
Insurance expense 624
Depreciation expense 4,240
Interest expense 2,080
Common stock 48,000
Retained earnings (Jan 1, 2022) 32,000
Accumulated depreciation-buildings 36,480
Accounts payable 7,600
Notes payable 74,880
Accumulated depreciation-equipment 14,976
Interest payable2,880
Service revenue11,760
Prepare a classified balance sheet. Assume that $10,880 of the note payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment)