a.
PROBLEM 2.10
A
BIG SCREEN SCRIPTS
30 Minutes, Strong
BIG SCREEN SCRIPTS
Balance Sheet
November 30, 2
0
15
a.
(1) Computed as total assets, $614,000, less total liabilities, $261,600, less retained earnings,
$225,400
b.
SOLUTIONS TO PROBLEMS SET
B
PROBLEM 2.1B
TRI-STATE LODG
E
15 Minutes, Easy
TRI-STATE LODGE
Balance Sheet
The balance sheet indicates that Tri-State Lodge is in a weak financial position. The highly
liquid assets—cash and receivables—total only $12,400, but the company has $44,600 of debts
a.
PROBLEM 2.2B
PROSPERITY COMPAN
Y
Description of transactions:
Purchased furniture for cash at a cost of $800.
15 Minutes, Medium
Owners’
Assets = Equity
Office Notes
A
ccounts Capital
Cash + Equipment
+
Building + Land = Payable + Payable + Stock
December 31 balances 12,000$ 41,300$ 66,000$ 80,000$ 42,000$ 7,300$ 150,000$
(1) 40,000 40,000
DELTA CORPORATIO
N
Liabilities +
PROBLEM 2.3B
$
$
$
$
$
$
$
15 Minutes, Medium
Owners’
Assets = Equity
A
ccounts Office Notes
A
ccounts Capital
Cash + Receivable + Trucks + Equipment = Payable + Payable + Stock
December 31 balances 4,700$ 8,300$ 72,000$ 3,000$ 10,000$ 8,000$ 70,000$
(1) (2,600) 2,600 –
Balances 2,100$ 8,300$ 72,000$ 5,600$ 10,000$ 8,000$ 70,000$
(2) 2,500 (2,500)
MAXX TRUCKIN
G
Liabilities +
PROBLEM 2.4B
$
$
$
$
$
$
$
a.
Liabilities & Owners’ Equity
Cash * 9,150$ Liabilities:
Notes receivable 1,200 Notes payable 115,000$
*
b.
PROBLEM 2.5B
CIRCUS WORLD
20 Minutes, Medium
The loss of an asset, Tents, from a fire would require a revised balance sheet that reflects a decrease
CIRCUS WORLD
Balance Sheet
June 30, 2015
Assets
Total liabilities and owners’ equity, $630,250, minus total of all other assets, $621,100
a.
Liabilities & Owners’ Equity
Cash 9,300$ Liabilities:
Accounts receivable 15,000 Notes payable 65,000$
b.
PROBLEM 2.6B
MAPLE VALLEY FARM
S
20 Minutes, Medium
*Total assets, $226,700, minus total liabilities, $79,000, less capital stock, $100,000.
The loss of an asset, Barns and Sheds, from a tornado would cause a decrease in total assets. When
MAPLE VALLEY FARMS
Balance Sheet
September 30, 2015
Assets
a.
Liabilities & Owners’ Equity
Cash 4,100$ Liabilities:
Accounts receivable 8,200 Notes payable 40,000$
b.
Liabilities & Owners’ Equity
Cash 26,100$ Liabilities:
Accounts receivable 8,200 Notes payable 40,000$
Supplies 8,000 Accounts payable 6,000
Balance Sheet
Assets
July 5, 2015
July 1, 2015
Assets
Balance Sheet
PROBLEM 2.7B
($100,000).
*Retained earnings ($33,600) = Total assets ($184,300), less total liabilities ($50,700) + capital stock
COLLIER BUTCHER SHOP
COLLIER BUTCHER SHO
P
35 Minutes, Medium
COLLIER BUTCHER SHOP
Cash flows from operating activities:
(7,000)$
(1,000)
c.
PROBLEM 2.7B
COLLIER BUTCHERSHOP
(
concluded
)
COLLIER BUTCHER SHOP
Statement of Cash Flows
For the Period July 1-5, 2015
Collier Butcher Shop is in a stronger financial position on July 5 than it was on July 1.
Cash payment of accounts payable
Cash purchase of supplies
On July 1, the highly liquid assets (cash and accounts receivable) total only $12,300, but the company
has $10,700 in debts due in the near future (accounts payable plus salaries payable).
a.
Liabilities & Owners’ Equity
Cash 6,900$ Liabilities:
Accounts receivable 5,000 Notes payable * 50,000$
b.
Liabilities & Owners’ Equity
Cash 34,000$ Liabilities:
Accounts receivable 5,000 Notes payable 50,000$
*Total assets, $175,900 less owners’ equity, $119,100 less accounts payable, $6,800, equals notes
p
a
y
able.
Assets
THE SWEET SHOP
PROBLEM 2.8B
THE SWEET SHO
P
40 Minutes, Strong
THE SWEET SHOP
Balance Sheet
October 6, 2015
Balance Sheet
September 30, 2015
Assets