Financial Accounting Final Answers
ANSWERS
1 a)
1 b)
1 c)
1 d)
1 e)
1 f) This transaction has no effect on the balance sheet since this is only an order, no financial value.
1 g)
1 h)
1 i)
1 j)
2 a) a]
b]
c]
d]
e]
f]
g]
h]
j]
k]
l]
2 b) INCOME STATEMENT as of April, 30th
Sales Revenue……………………………. $10,000 COGS…………………………………… $(6,500)
GROSS MARGIN………………………..$ 3500
Salary Expense…………………………………..$(1,000) Rent Expense………………………………….. $(2,000) Utilities Expense …………………………….$(200) Depreciation Expense ……………………….$(90)
TOTAL EXPENSES……………………....$ (3290)
Net Income: 3500 – 3290 = $ 210
BALANCE SHEET as of April, 30th
Cash 3,870 Acc / Pay 5,000 A/R 10,000
(Raw Mat 11,800 + Finished Goods1,500) Inv 13,300
Total Current Assets $ 27,170 Total Current Liabilities $ 5,000
(Depreciation $90) PPE (Net) $ 5910 C/S $ 30,000 Prepaid Rent $ 2000 R/E $ 80
Total Non-Current Assets $ 7,910 SHE $ 30,080
A = $ 35,080 = L + E = 30,080 + 5,000 = $ 35,080
|Age |Amount |Estimate to be Uncollectible |Required balance in Allowance|
|1-30 Days |$600,000 |%% 0.70%
1 a)
1 b)
1 c)
1 d)
1 e)
1 f) This transaction has no effect on the balance sheet since this is only an order, no financial value.
1 g)
1 h)
1 i)
1 j)
2 a) a]
b]
c]
d]
e]
f]
g]
h]
j]
k]
l]
2 b) INCOME STATEMENT as of April, 30th
Sales Revenue……………………………. $10,000 COGS…………………………………… $(6,500)
GROSS MARGIN………………………..$ 3500
Salary Expense…………………………………..$(1,000) Rent Expense………………………………….. $(2,000) Utilities Expense …………………………….$(200) Depreciation Expense ……………………….$(90)
TOTAL EXPENSES……………………....$ (3290)
Net Income: 3500 – 3290 = $ 210
BALANCE SHEET as of April, 30th
Cash 3,870 Acc / Pay 5,000 A/R 10,000
(Raw Mat 11,800 + Finished Goods1,500) Inv 13,300
Total Current Assets $ 27,170 Total Current Liabilities $ 5,000
(Depreciation $90) PPE (Net) $ 5910 C/S $ 30,000 Prepaid Rent $ 2000 R/E $ 80
Total Non-Current Assets $ 7,910 SHE $ 30,080
A = $ 35,080 = L + E = 30,080 + 5,000 = $ 35,080
|Age |Amount |Estimate to be Uncollectible |Required balance in Allowance|
|1-30 Days |$600,000 |%% 0.70%