会计学教程与案例财务会计分册第十12版第2章答案.docx

1、会计学教程与案例财务会计分册第十12版第2章答案Chapter 2BASIC ACCOUNTING CONCEPTS: THE BALANCE SHEETProblem SolutionsProblem 2-1Owners equity equals $55,000.Liabilities equal $25,000.Noncurrent assets equal $70,000.Owners equity is $73,000.Current assets $33,000 + Noncurrent assets $55,000 = Total assets $88,000.Current l

2、iabilities are $15,000 ($33,000 / 2.2)Total liabilities and Owners Equity = $88,000.Owners equity $73,000 = Total liabilities and Owners equity $88,000 - Current liabilities $15,000.Current ratio is 1.4 ($35,000 / $25,000)Current assets $35,000 = Total assets $95,000 - Noncurrent assets $60,000.Curr

3、ent liabilities $25,000 = Total assets $95,000 - Owners equity $70,000.This problem tests students understanding of balance sheet relationships using the basic accounting equation and financial ratio.Problem 2-2J.L. GREGORY COMPANYBalance Sheet, June 30, -.AssetsLiabilitiesCash $ 89,000Accounts paya

4、ble $ 241,000Marketable securities 379,000Taxes payable 125,000Accounts receivable 505,000Accrued expenses 107,000Inventories 513,000Current liabilities 473,000Current assets 1,486,000Notes payable 200,000Land 230,000Bonds payable 700,000Buildings 1,120,000Total liabilities 1,373,000Accumulated depr

5、eciation (538,000)Equipment 761,000Owners EquityAccumulated depreciation (386,000)Capital stock 1,000,000Investments 320,000Retained earnings 620,000Total assets $2,993,000Total liabilitiesand owners equity $2,993,000Some students may want to test the notes payable as a current liability. Notes paya

6、ble are usually debt instruments longer than one year, but in the absence of any details listing them as a current liability is acceptable.Problem 2-3Cash + $100,000; Capital stock + $100,000.Bonds payable - $25,000; Capital stock + $25,000.Retained earnings (Depreciation expense) - $8,500.Accumulat

7、ed depreciation on plant and equipment + $8,500.Cash - $15,900; Inventory + $15,900.Inventory + $9,400; Accounts payable + $9,400.Inventory - $4,500; Accounts receivable + $7,200; Retained earnings + $2,700Cash + $3,500; Accounts receivable - $3,500.Dividends payable + $3,000; Retained earnings - $3

8、,000.Cash - $3,000; Dividends payable - $3,000.No effect.Some students may simply show the net effect on assets, liabilities, and owners equity without reference to the specific accounts. While this is acceptable, students should be pushed to identify both the net effect and the particular accounts

9、involved. This will help students to become familiar with the balance sheet account names.Problem 2-4CARSON LEGATT PARTNERSHIP Balance Sheet as of June 1, -.AssetsCapital AccountsCash $ 50,000Carson $ 50,000Inventory 50,000Legatt 50,000Total assets $100,000Total capital $100,000CARSON LEGATT PARTNER

10、SHIPBalance Sheet as of June 30, -.AssetsLiabilitiesCash $ 22,100Bank loan $ 50,000Inventory 58,500Capital - Carson 51,550Land 25,000Capital - Legatt 54,050Building 50,000_$155,600$155,600CARSON LEGATT PARTNERSHIPAccounts, June 30, -.CarsonCapital - June 1 $50,000Additions 7,750Withdrawals ( 6,200)C

11、apital - June 30 $51,550LegattCapital - June 1 $50,000Additions 7,750Withdrawals ( 3,700)Capital - June 30 $54,050Problem 2-5Jan. 4:Retained earnings (Sales) + $12,000; Cash + $12,000 Inventory - $7,000 ;Retained earnings (Cost of goods sold) - $7,000Jan. 6:No effect.Jan. 8:Inventory + $7,000; Accou

12、nts Payable + $7,000Jan. 11:Inventory - $1,500; Cash + $2,500; Retained earnings (Sales) + $2,500; Retained earnings (Cost of goods sold) - $1,500Jan. 16:Inventory - $2,000; Retained earnings (Cost of goods sold) - $2,000; Accounts receivable + $3,400; Retained earnings (Sales) + $3,400Jan. 26:Cash

13、- $4,200; Retained earnings (Wages) - $4,200Jan. 29:Cash - $20,000; Land + $20,000Jan. 31:Cash - $2,800; Prepaid insurance + $2,800MARVIN COMPANYBalance Sheet as of January 31, -.AssetsLiabilitiesCash $12,500Accounts payable $ 7,000Accounts receivable 3,400Total current liabilities $7,000Inventory 4

14、6,500Current assets 62,400Notes payable 20,000Land 20,000Total liabilities 27,000Prepaid insurance 2,800Owners EquityCapital 55,000_Retained earnings 3,200Total assets $85,200Total liabilities and owners equity $85,200Problem 2-6BRIAN COMPANYCurrent Assets and Liabilities as of December 31, -.Curren

15、t AssetsCurrent LiabilitiesCash $ 2,000Accounts payable $5,000Marketable securities 3,500Wages payable 1,500Accounts receivable 7,000Bonds due current portion 2,000Current assets $12,500Current liabilities $8,500Current ratio = $12,500 $8,500 = 1.47The current ratio is an indication of an entitys ab

16、ility to meet its current obligations.CasesCase 21: Maynard Company (A)Note: This case is unchanged from Eleventh Edition.Answers to QuestionsQuestion 1Two suggested balance sheets as required by Question 1 are shown below.Question 2This question provides an opportunity for students to step back and

17、 think about the information in a financial statement, rather than focusing on the details of constructing a financial statement. Students can begin to analyze and use the information that the financial statements contain. Students can be asked to identify which accounts have changed significantly b

18、etween the beginning and ending balance sheets. These would include accounts receivable, note receivable, equipment, accounts payable, taxes payable, and the bank note payable, in addition to the cash account. The only ratio explained in Chapter 2 of the text is the current ratio, so students should

19、 be encouraged to ascertain what has happened to the current ratio between June 1 and June 30. Cash has increased largely due to increased accounts and notes payable, as well as cash generated by operations. Cash appears to have been increased by the collection of the note receivable, but as explain

20、ed in Question 3 below, this was offset by the declaration of an identical dividend, so that the net effect on cash of these two transactions was zero. Equipment purchases were a major use of cash. As a result of these events, the June 30 current ratio has fallen to 2.15 from its June 1 level of 4.3

21、5. Even though the leverage ratios have not yet been introduced in the text, the instructor might want to encourage students to observe that the proportion of liabilities on the right-hand side of the balance sheet has increased, with a complementary decrease in the proportion of equities. The capit

22、alization ratio Total Liabilities/Total Liabilities + Equities has increased from 4% on June 1 to 9% on June 30. While these ratios are still very low, students can be made aware of the importance of identifying trends early.Question 3Retained Earnings has not increased by the amount of net income f

23、or the month, $19,635, since Diane Maynard as the sole shareholder declared a dividend of $11,700, which she then used to cancel her loan of $11,700 from the company. Hence, Retained Earnings increased by $7,935 during the month of June.Question 4This question is intended to emphasize early in the c

24、ourse that shareholders equity does not necessarily reflect what the entity is worth. Time permitting, the instructor can have students estimate the cash proceeds of piecemeal sale of the assets by a liquidation company, which, net of liabilities, will certainly be less than $619,446. Then the value

25、 of the company as a going concern can be discussed; if Junes $19,635 net income is typical, the firm would be worth more than $619,446 as a going concern. Capitalizing Junes net income on an annual basis ($19,635 x 12) at 10 times earning gives the company a value in excess of $2 million. The compa

26、nys return on equity is very high. On an annual basis it may be as high as 32%. This figure is 12 months income ($19,635 x 12) divided by projected year-end equity ($619,446 + $19,635 x 6). This is not a typical business. It is better.MAYNARD COMPANYBalance Sheets as of June 1 and June 30AssetsCurre

27、nt Assets:As of June IAs of June 30:Cash $ 34,983$ 66,660Accounts receivable 21,79826,505Note receivable 11,7000Merchandise inventory 29,83526,520Supplies on hand 5,5596,630Prepaid insurance 3,150 2,826Total current assets $107,025$129,141Noncurrent assets:Land 89,70089,700Building 585,000585,000Les

28、s: Accumulated depreciation (156,000)429,000( 157,950)427,050Equipment 13,26036,660Less: Accumulated depreciation ( 5,304)7,956( 5,928)30,732Other noncurrent assets 4,857 5,265Total noncurrent assets 531,513 552,747Total assets $638,538$681,888Liabilities and Shareholders EquityCurrent liabilities:A

29、ccounts payable $8,517$ 21,315Bank notes payable 8,38529,250Taxes payable 5,7007,224Accrued wages payable 1,974 2,202Total current liabilities $ 24,576$ 59,991Other noncurrent liabilities 2,451 2,451Total liabilities 27,02762,442Shareholders Equity:Capital stock 390,000390,000Retained earnings 221,511 229,446Total shareholders equity 611,511 619,446