Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 5, Problem 8AP
The information that follows is from Rodriguez’s Tools Company’s April 30, 2014,
REQUIRED
- 1. Prepare a classified
balance sheet for Rodriguez’s Tools. - 2. BUSINESS APPLICATION ▶ Compute Rodriguez’s Tools’
current ratio and debt to equity ratio. (Round to one decimal place.) - 3. BUSINESS APPLICATION ▶ As a user of the classified balance sheet, why would you want to know the current ratio or the debt to equity ratio?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Part B: Owner's Equity
Examine the following fictitious equity scenarios. Following the report form balance sheet format, prepare
only the owner's equity section for each owner. Use spreadsheet software, such as Excel, and use the
provided Total Liabilities value to determine the new capital balance and Total Liabilities and Owner's Equity
value. Be sure to use formulas for all calculations.
Save your workbook as "OESections_YourName". Label the individual tabs accordingly: "Sit1", "Sit2" and
"Sit3".
Situation
Owner
Fiscal
Period
Total
Liabilities
Beginning
Capital
Net
Income/
Drawings
Net Loss
Year ended
1
H. Campbell December
$10 000
$31 560
$42 500
$5 200
31, 20-
Month
2
T. Smyth
ended May
$14 200
$78 256
-$2 100
$125
31, 20-
Quarter
ended
2
K. Dearing
$59 250
March 31,
20-
$125 645
$6 200
$1 250
Netflix, Inc. , is the world’s leading Internet subscription service for movies and TV shows. Thefollowing are several of the accounts included in a recent balance sheet:1. Accrued Liabilities2. Prepaid Rent3. Cash4. Common Stock5. Note Payable (long-term)6. Equipment7. Retained Earnings8. Accounts PayableRequired:1. Indicate how each account normally should be categorized on a classified balance sheet. UseCA for current asset, NCA for noncurrent asset, CL for current liability, NCL for noncurrentliability, and SE for stockholders’ equity.2. Indicate whether the account normally has a debit or credit balance.
A partial worksheet for Richardson Law Firm is presented below. Solve for the missing information.
(Click the icon to view the partial worksheet.)
Begin by solving the missing information for the account title and Income Statement columns, then solve for the missing information in the Balance Sheet columns.
Total
Net (b)
Total
(a)
Income Statement
Debit
(d)
6,750
$
$
Credit
21,675
21,675
Chapter 5 Solutions
Principles of Accounting
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 1SECh. 5 - Prob. 2SECh. 5 - Tell whether each of the following accounts is a...
Ch. 5 - Prob. 4SECh. 5 - Prob. 5SECh. 5 - Prob. 6SECh. 5 - Prob. 7SECh. 5 - The lettered items that follow represent a...Ch. 5 - Each of the statements that follow violates one or...Ch. 5 - The lettered items that follow represent a...Ch. 5 - Prob. 4EACh. 5 - Prob. 5EACh. 5 - Prob. 6EACh. 5 - Prob. 7EACh. 5 - Prob. 8EACh. 5 - Prob. 1PCh. 5 - The information that follows is from Jasons...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5APCh. 5 - The information that follows is from Matts...Ch. 5 - Prob. 7APCh. 5 - The information that follows is from Rodriguezs...Ch. 5 - Prob. 1CCh. 5 - Prob. 2CCh. 5 - Prob. 3CCh. 5 - Prob. 4CCh. 5 - Prob. 5C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What's New The activity below will help you check how much you know about the key elements of the Statement of Financial Position (SFP). Activity 1: "HULA ME" Directions: 1. Guess the account title being described in each sentence. 2. Identify what element of SFP (Assets, Liabilities or Equity) it is listed/ included. 3. Write your answers on the columns provided. Description Account title SFP Element I am used as a medium of exchange in business transactions. I may be held on hand or put in banks for safekeeping. 2. 1. I can be in the form of cash or other assets invested by the owner to start- up a business. 3. I am items held for resale. 4. I am expenses paid in advance. 5. I am expenses incurred but not yet paid. 6. I am amounts due to suppliers for the purchase of goods or services received on account. 7. I am an amount taken by the owner from the business for personal use. 8. I am an account due with supporting promissory notes. I am 9. an account due from customers as a result…arrow_forwardA partial worksheet for Rickman Law Firm is presented below. Solve for the missing information. View the partial worksheet. Begin by solving the missing information for the account title and Income Statement columns, then solve for the missing information in the Balance Sheet columns. Total Net (b) Total (a) (d) Income Statement Debit 6,350 Credit $ 21,100 $ 21,100 Partial worksheet Gr 6 32 Total 33 Net (b) 34 Total A Income Statement Debit Credit (a) 6,350 (d) Print K $ Debit 21,100 $ 210,050 Balance Sheet Credit $203,700 (c) (f) 21,100 (e) Done M Xarrow_forwardVisit the website of the US Securities and Exchange Commission (SEC) https://www.sec.gov/edgar/searchedgar/companysearch.html Search for the latest Form 10-K for a company you would like to analyze. Submit a short memo that A. Includes the name of the company you have chosen.B. Review the company’s end-of-period Balance Sheet to determine the following: Total assets Total liabilities Total equity C. Compare beginning and ending Assets totals and discuss the amount of change.D. Compare beginning and ending Liabilities totals and discuss the amount of change.E. Compare beginning and ending Equity totals and discuss the amount of change. Please provide a link to the company’s Form 10-K to allow accurate verification of your answers.arrow_forward
- Please provide the following formulas: 1. The Fundamental Accounting Equation 2. The Formula for Computing Net Income 3. The Formula for the Balance Sheet Part 3 Please give one or two examples of accounts in the following categories: Assets Liabilities Owner's Equity (provide only one example for this account) Revenue Expenses Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum.arrow_forwardThe two main sets of accounting standards followed by businesses are GAAP and IFRS. Briefly explain how the balance sheet is formatted under each set. (You should search the internet to answer this question) B- Farah Consulting completed the following transactions during December 2016 5. Prepare a classified balance sheet as of December 31, 2016.6. Is Farah’s ability to pay its short term debts strong or weak? Support your answer by calculating the suitable ratio(s). (You should search the internet to answer this question)arrow_forwardQuestion Directions: Establish the following T-Accounts and record the transactions directly into the T-accounts. Use the following account titles: CashMasunurin, CapitalAccounts ReceivableMasunurin, WithdrawalsSuppliesLaundry RevenuesPrepaid InsuranceSalaries ExpenseEquipmentRent ExpenseFurniture and FixturesUtility ExpenseAccounts PayableMiscellaneous Expense On January 1, 2017, Jaime Masunurin opened BLS Laundry Shop. Throughout the month of January, the following transactions were completed: 1. He deposited P400,000 in a bank account in the name of the business.2. He bought chairs and a table and paid them with P5,700 cash.3. He bought supplies on account from Morong Supply Inc. P3,250.4. He paid P5,750 for the monthly rental of the place.5. He bought washing machines and dryers from Bataan Equipment Corp. amounting to P115,000. He paid them with P35,000 in cash and the balance on the account.6. He earned P19,250 revenues on cash basis for the first half of the month.7. He…arrow_forward
- Consider the following accounts: aClick the icon to view the accounts.) Identify the financial statement (or statements) that each account would appear on. Use I for Income Statement, OE for Statement of Owner's Equity, B for Balance Sheet, and C for Statement of Cash Flows. (If an input field is not used in the table leave the input field empty; do not select a label.) Financial statement(s) account appears on Accounts Payable а. b. Cash c. Owner, Capital d. Accounts Receivable e. Rent Expense f. Service Revenue g. Office Supplies h. Owner, Withdrawals i. Land j. Salaries Expensearrow_forwardCarter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Cash Accounts receivable. Inventory Current assets Capital assets Assets Total assets $9 15 10 34 34 $68 Balance Sheet (in $ millions) Liabilities and Shareholders' Equity Accounts payable Accrued vages Accrued taxes Current liabilities. Long-term debt Common stock Retained earnings Total liabilities and shareholders' equity $9 8 7 24 10 15 19 $68 The firm has an aftertax profit margin of 8 percent and a dividend payout ratio of 40 percent. a. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Do not round intermediate calculations. Enter the answer in millions. Round the final…arrow_forwardDirections: Establish the following T-Accounts and record the transactions directly into the T-accounts. Use the following account titles: CashMasunurin, CapitalAccounts ReceivableMasunurin, WithdrawalsSuppliesLaundry RevenuesPrepaid InsuranceSalaries ExpenseEquipmentRent ExpenseFurniture and FixturesUtility ExpenseAccounts PayableMiscellaneous Expense On January 1, 2017, Jaime Masunurin opened BLS Laundry Shop. Throughout the month of January, the following transactions were completed: 1. He deposited P400,000 in a bank account in the name of the business.2. He bought chairs and a table and paid them with P5,700 cash.3. He bought supplies on account from Morong Supply Inc. P3,250.4. He paid P5,750 for the monthly rental of the place.5. He bought washing machines and dryers from Bataan Equipment Corp. amounting to P115,000. He paid them with P35,000 in cash and the balance on the account.6. He earned P19,250 revenues on cash basis for the first half of the month.7. He bought…arrow_forward
- Directions: Establish the following T-Accounts and record the transactions directly into the T-accounts. Use the following account titles: CashMasunurin, CapitalAccounts ReceivableMasunurin, WithdrawalsSuppliesLaundry RevenuesPrepaid InsuranceSalaries ExpenseEquipmentRent ExpenseFurniture and FixturesUtility ExpenseAccounts PayableMiscellaneous Expense On January 1, 2017, Jaime Masunurin opened BLS Laundry Shop. Throughout the month of January, the following transactions were completed: 1. He deposited P400,000 in a bank account in the name of the business.2. He bought chairs and a table and paid them with P5,700 cash.3. He bought supplies on account from Morong Supply Inc. P3,250.4. He paid P5,750 for the monthly rental of the place.arrow_forwardFrom the accounts of DELTACOR Company, you are required to properly arrange the following accounts according to their group of accounts then: 1. Prepare the statement of financial position using the report form. 2. Prepare the supporting notes 3. Compute the ending capital of DELTA Office supplies Accounts Receivable Notes Receivable 30, 000 59,400 39,600 172,600 5,000 5, 000 247,500 6, 000 180, 000 225, 000 67, 500 72, 000 Cash Interest Receivable Allowance for bad debts Merchandise inventory Prepaid insurance Furniture and Fixtures Delivery equipment Accumulated depreciation- Fur. & Fixtures Accumulated Depreciation – Delivery Eqpt. Accrued expenses Accounts payable Notes payable (due in 2 yrs) DELTA, capital DELTA, drawing 8, 000 45, 000 105, 000 ? 50, 000 During the year, the owner made an additional investment of P20, 000 and withdrawals amounting of 50, 000. DELTA capital, beginning is 617, 600. Net income for the year is 75, 000.arrow_forward1, How can we summarize data to prepare the financial statements? 2, what are closing entries and how do we record them? 3,how do decision-makers evaluate a company using the current ratio and debt ratio? 4, how does IFRS apply to the accounting cycle and financial reporting?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY