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Answer Homework On Accounting 205 Chapter 9

 

BASIC ACCOUNTING 2

Week One Exercise Assignment

Basic Accounting Equations

1.

Recognition of normal balances

The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. Amounts paid to a mall for rent. (Expense, normal debit balance)  b. Amounts to be paid in 10 days to suppliers. (Liability, normal credit balance) c. A new fax machine purchased for office use. (Asset, normal debit balance) d. Land held as an investment. (Asset, normal debit balance) e. Amounts due from customers. (Asset, normal debit balance) f. Daily sales of merchandise sold. (Revenue, normal credit balance) g. Promotional costs to publicize a concert. (Expense, normal debit balance) h. A long-term loan owed to Citizens Bank. (Liability, normal credit balance) i. The albums, tapes, and CDs held for sale to customers. (Asset, normal debit balance) 2.

 Basic journal entries

The following transactions pertain to the Jennifer Royall Company: May 1 Jennifer Royall invested cash of $25,000 and land valued at $15,000 into the business. Cash $25,000 (debit) Land $15,000 (debit)

Owner’

s equity $40,000 (credit) 5 Provided $1,000 of services to Jason Ratchford, a client, on account. Accounts receivable $1,000 (debit) Revenue $1,000 (credit) (Services on Account) 9 Paid $1,250 of salaries to an employee.

Inventory TurnoverJan - FebMar-AprMay-JunJul-AugSept-OctNov-Dec20X5 20X420X5 20X420X5 20X420X5 20X420X5 20X420X5 20X420X5 20X4AssetsCurrent AssetsCash 112501250012,25013,40013,25014,30014,25015,20015,25016,10016,25017,00017,25017,900Accounts Receivable (net) 185002500019,50025,90020,50026,80021,50027,70022,50028,60023,50029,50024,50030,400Inventories 385003500039,50035,90040,50036,80041,50037,70042,50038,60043,50039,50044,50040,400Prepaid Expense 375037504,7504,6505,7505,5506,7506,4507,7507,3508,7508,2509,7509,150Total Current Assets 720007625073,00077,15074,00078,05075,00078,95076,00079,85077,00080,75078,00081,650Buildings (net) 102750101250103,750102,150104,750103,050105,750103,950106,750104,850107,750105,750108,750106,650Equipment (net) 285003000029,50030,90030,50031,80031,50032,70032,50033,60033,50034,50034,50035,400Vehicles (net) 320004000033,00040,90034,00041,80035,00042,70036,00043,60037,00044,50038,00045,400Total Property, Plant, and Equipment 163250171250164,250172,150165,250173,050166,250173,950167,250174,850168,250175,750169,250176,650Trademarks (net) 14750250015,7503,40016,7504,30017,7505,20018,7506,10019,7507,00020,7507,900Total assets 250000250000251,000250,900252,000251,800253,000252,700254,000253,600255,000254,500256,000255,400Accounts Payable 490007000050,00070,90051,00071,80052,00072,70053,00073,60054,00074,50055,00075,400Notes Payable 135004000014,50040,90015,50041,80016,50042,70017,50043,60018,50044,50019,50045,400Federal Taxes Payable 2500250003,50025,9004,50026,8005,50027,7006,50028,6007,50029,5008,50030,400Total Current Liabilities 6500013500066,000135,90067,000136,80068,000137,70069,000138,60070,000139,50071,000140,400Long-Term Debt 500002500051,00025,90052,00026,80053,00027,70054,00028,60055,00029,50056,00030,400Total Liabilities 115000160000116,000160,900117,000161,800118,000162,700119,000163,600120,000164,500121,000165,400Common Stock, $10 par 250002500026,00025,90027,00026,80028,00027,70029,00028,60030,00029,50031,00030,400Retained Earnings 11000065000111,00065,900112,00066,800113,00067,700114,00068,600115,00069,500116,00070,400Total Stockholders' Equity 13500090000136,00090,900137,00091,800138,00092,700139,00093,600140,00094,500141,00095,400Total Liabilities and Stockholders' Eq250000250000251,000250,900252,000251,800253,000252,700254,000253,600255,000254,500256,000255,400WATERLOO CORPORATIONComparative Income StatementsFor the Years Ending December 31, 20X5 and20X5 20X420X520X420X5 20X420X520X420X5 20X420X520X420X5 20X4Net Sales 550000500000575,000510,000580,000520,000585,000521,000590,000523,000595,000525,000600,000535,000The company is planning to borrow $300,000 via a 90-day bank loan to cover short-term operating needs.a. Compute the accounts-receivable and inventory-turnover ratios for 20X5Accounts Receivable TurnoverStudy the ratios from part (a) and comment on the company's ability to repay a bank loan in 90 days.Alaska's major lineof business involves the processing and distribution of fresh and frozen fish throughout theUnited States. Do you have any concerns about the company's inventory-turnover ratio? Briefly Account tobe changedOriginalAmountCh 9 Pb 1PLACE YOUR ANSWERS BELOW STARTING ON ROW 99

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