CHARITY AND SPONSOR ADS
Shopping Cart
0 items
 

PA2-1 Determining Financial Statement Effects of Various Transactions Mallard Incorporated (MI)-ANSWER KEY

PA2-1 Determining Financial Statement Effects of Various Transactions Mallard Incorporated (MI)-ANSWER KEY
Click to enlarge
Price: $20.00
Availability: In Stock
Model: 1
Average Rating: 5 out of 5 Stars!

 

 

INSTANT DOWNLOAD

Solution Guide / Answer Key:

 

PA2-1 Determining Financial Statement Effects of Various Transactions Mallard Incorporated (MI)-ANSWER KEY


prepare responses to Group A problems PA 2-1 GROUP A PROBLEMS Available with McGraw-HillÂ’s Homework Manager PA2-1 Determining Financial Statement Effects of Various Transactions Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customersÂ’ trains for a fee. The company has been in business for five years. At the end of the most recent year, 2005, the accounting records reflected total assets of $500,000 and total liabilities of $200,000. During the current year, 2006, the following summarized events occurred: a. Issued additional shares of stock for $100,000 cash. b. Borrowed $120,000 cash from the bank and signed a 10-year note. c. Built an addition on the factory for $200,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $30,000, paying $3,000 in cash and signing a note due in six months for the balance. e. Returned a $3,000 piece of equipment, from d, because it proved to be defective; received a reduction of the note payable. LO1-LO5 COACHÂ’S CORNER You wonÂ’t need different accounts to record the transactions described below, so have a quick look at the ones listed before you start to answer this question. f. Three different accounts are affected. g. Does PPC owe anything to its new president for the year ended December 31, 2006? h. What does PPC give up and take back? LO1, LO2, LO5 excel Phillips−Libby−Libby: Fundamentals of Financial Accounting 2. Reporting Investing and Financing Results on the Balance Sheet Text © The McGraw−Hill Companies, 2005 chapter 2 Reporting Investing and Financing Results on the Balance Sheet f. Purchased a delivery truck (equipment) for $10,000; paid $5,000 cash and signed a ninemonth note for the remainder. g. At the end of 2006, lent $2,000 cash to the company president, Jennifer Mallard, who signed a note due in one year. h. A stockholder sold $5,000 of his capital stock in Mallard Incorporated to his neighbor. Required: 1. Complete the spreadsheet that follows, using plus ( ) for increases and minus ( ) for decreases for each account. The first transaction is used as an example. Assets Liabilities StockholdersÂ’ Equity Notes Notes Contributed Retained Cash Receivable Equipment Building Payable Capital Earnings (a) 100,000 100,000 2. Did you include event h in the spreadsheet? Why or why not? 3. Based on beginning balances plus the completed spreadsheet, provide the following amounts (show computations): a. Total assets at the end of the year. b. Total liabilities at the end of the year. c. Total stockholdersÂ’ equity at the end of the year. 4. As of December 31, 2006, has the financing for MIÂ’s investment in assets primarily come from liabilities or stockholdersÂ’ equity?

 

FILE: MS WORD and EXCEL

Write Review
Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.