WEEK 2 HOMEWORK ACCT 303

  1. For each of the following balance sheet items, indicate the appropriate classification category from the dropdown list.

Note: If the item is a contra account, select the appropriate classification category with “- contra” from the dropdown list.

1.Property, plant, and equipment

  1. Current liabilities
  2. Investments

4.Current assets-contra

5.Long-term liabilities

6.Current liabilities

7.Current liabilities

8.Retained eamings

9.Investments

10.Current assets

11.Intangible assets

12.Property, plant, and equipment

13.Current liabilities

14.Current assets

15.Paid-in capital

16.Property, plant, and equipment

17.Current assets

18.Current liabilities

 

 

  1. The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.
Account Title Debits Credits
Cash $ 55,000  
Accounts receivable 49,000  
Inventory 90,000  
Prepaid rent (for the next 8 months) 31,000  
Investment in equity securities (short term) 25,000  
Machinery 220,000  
Accumulated depreciation   $ 26,000
Patent (net) 94,000  
Accounts payable   15,500
Salaries payable   11,500
Income taxes payable   47,000
Bonds payable (due in 10 years)   220,000
Common stock   180,000
Retained earnings   64,000
Totals $ 564,000 $ 564,000

Required:

Prepare a classified balance sheet for Jackson Corporation at December 31, 2024, by properly classifying each of the accounts.

Note: Amounts to be deducted should be indicated by a minus sign.

 

  1. Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below.
Tech Supplies Company, Incorporated
Balance Sheet
At February 1, 2020
($ in millions)
Assets  
Current assets:  
Cash and cash equivalents $ 2,176
Accounts receivable (net) 1,262
Inventory 5,071
Other current assets 432
Total current assets 8,941
Long-term assets 3,733
Total assets $ 12,674
Liabilities and Shareholders’ Equity  
Current liabilities:  
Accounts payable $ 5,450
Other current liabilities 4,475
Total current liabilities 9,925
Long-term liabilities 2,256
Shareholders’ equity 493
Total liabilities and shareholders’ equity $ 12,674

 

Tech Supplies Company, Incorporated
Income Statement
For the Year Ended February 1, 2020
($ in millions)
Revenues $ 39,628
Costs and expenses 38,173
Operating income 1,455
Other income (expense)* (85)
Income before income taxes 1,370
Income tax expense 803
Net income $ 567

*Footnote asteriskIncludes $260 of interest expense.

Required:

1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020.

1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020.

1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020.

1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020.

Note: For all requirements, round your answers to 2 decimal places.

 

 

  1. The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following:
Inventory $ 850,000
Total assets $ 2,900,000
Current ratio 2.60
Acid-test ratio 1.60
Debt to equity ratio 1.9

Required:

Determine the following balance sheet items:

  1. Current assets
  2. Shareholders’ equity
  3. Long-term assets
  4. Long-term liabilities

 

  1. The following is the ending balances of accounts at December 31, 2024, for the Vosburgh Electronics Corporation.
Account Title Debits Credits
Cash $ 87,000  
Short-term investments 202,000  
Accounts receivable 143,000  
Long-term investments 45,000  
Inventory 225,000  
Receivables from employees 50,000  
Prepaid expenses (for 2025) 26,000  
Land 290,000  
Building 1,650,000  
Equipment 647,000  
Patent (net) 162,000  
Franchise (net) 50,000  
Notes receivable 300,000  
Interest receivable 22,000  
Accumulated depreciation—building   $ 630,000
Accumulated depreciation—equipment   220,000
Accounts payable   199,000
Dividends payable (payable on 1/16/2025)   20,000
Interest payable   26,000
Income taxes payable   50,000
Deferred revenue   70,000
Notes payable   320,000
Allowance for uncollectible accounts   18,000
Common stock   2,040,000
Retained earnings   306,000
Totals $ 3,899,000 $ 3,899,000

Additional information:

  1. The receivables from employees are due on June 30, 2025.
  2. The notes receivable are due in installments of $60,000, payable on each September 30. Interest is payable annually.
  3. Short-term investments consist of securities that the company plans to sell in 2025 and $60,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2025. Long-term investments consist of securities that the company does not plan to sell in the next year.
  4. Deferred revenue represents payments from customers for extended service contracts. Seventy five percent of these contracts expire in 2025, the remainder in 2026.
  5. Notes payable consists of two notes, one for $110,000 due on January 15, 2026, and another for $210,000 due on June 30, 2027.

Required:

Prepare a classified balance sheet for Vosburgh at December 31, 2024.

Note: Amounts to be deducted should be indicated by a minus sign.