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2-21 Solutions
2.27 b. continued.
(3) Building ............................................................. 3,200
Cash ............................................................... 4,130
Assets
=
Liabilities
+
Shareholders'
Equity
(Class.)
+3,200
+930
–4,130
Acquires building costing $3,200 million and land
costing $930 million, and pays in cash.
(4) Building Fixtures .............................................. 860
Accounts Payable .......................................... 860
Assets
=
Liabilities
+
Shareholders'
Equity
(Class.)
+860
–860
Acquires building fixtures costing $860 million on
account.
(5) Accounts Payable .............................................. 1,500
Cash ............................................................... 1,500
2.27 b. continued.
2.28 (Inheritance Brands; dual effects of transactions on balance sheet equation
and journal entries.) (Amounts in Millions)
a. Transaction
Shareholders'
Number Assets = Liabilities + Equity
(1) + $ 550 + $ 550
2-23 Solutions
Solutions 2-24
2.28 b. continued.
(2) Land ................................................................... 250
(3) Prepaid Insurance ............................................. 30
(4) Merchandise Inventory ..................................... 400
(5) Accounts Payable .............................................. 400
2-25 Solutions
2.29 (Callen Incorporated; preparing a balance sheet and an income statement.)
(Amounts in Thousands of Euros)
a. CALLEN, INCORPORATED
Balance Sheet
Jan. 31, Jan. 31,
2008 2007
Assets
Cash ............................................................ 30,536 2,559
Merchandise Inventory .............................. 114,249 151,894
b. CALLEN, INCORPORATED
Income Statement
For the Year Ended: Dec. 31, 2008
Solutions 2-26
2-27 Solutions
2.30 (ChemAsia Limited; preparing a balance sheet and an income statement.)
(Amounts in Millions)
a. ChemAsia, Limited
Income Statement
For the Year Ended December 31, 2008
Revenues:
Net Operating Revenues .............................................. $ 835,037
Interest and Other Revenues ...................................... 3,098
b. ChemAsia, Limited
Comparative Balance Sheet
Dec 31, Dec. 31,
2008 2007
Assets
Noncurrent Assets:
2.30 b. continued.
Liabilities and Shareholders' Equity
Noncurrent Liabilities:
Long-Term Debt ........................................... $ 35,305 $ 30,401
Other Noncurrent Liabilities ....................... 42,062 36,683
c. Retained Earnings, December 31, 2007 ................................. $ 213,255
2.31 (LBJ Group; miscellaneous transactions and adjusting entries.) (Amounts
in Millions)
a. (1) Inventories ....................................................... 180,000
2.31 continued.
2.31 continued.
2.32 a. continued.
(2) Rental Fees Received in Advance .................... 19,000
Assets
=
Liabilities
+
Shareholders'
Equity
(Class.)
–19,000
+19,000
IncSt → RE
b. (1) Salary Expense ................................................ 42,000
2.32 continued.
e. (1) Equipment ........................................................ 728,000
2-33 Solutions
Solutions 2-34
2.33 continued.
b. HANSEN RETAIL STORE
Balance Sheet
December 31, 2008
Assets
Cash ($50,000 + $40,000 – $60,000 – $97,400 + $52,900
+ $54,800 – $34,200 – $2,600) ....................................... $ 3,500
Accounts Receivable ($116,100 – $54,800) ........................ 61,300
2.34 (Regaldo Department Store; recording transactions and preparing a
balance sheet.) (Amounts in Thousands)
Merchandise
Cash (A) Inventory (A) Prepaid Rent (A)
(1) 500,000 20,000 (2) (5) 200,000 8,000 (6) (4) 60,000
4,000 (2) 3,200 (7)
2-35 Solutions
2.34 a. continued.
b. REGALDO DEPARTMENT STORES
Balance Sheet
January 31, 2008
Assets
Current Assets:
Solutions 2-36
2.35 (Regaldo Department Stores; analysis of transactions and preparation of
income statement and balance sheet.)
a. T-accounts.
Cash (A) Accounts Receivable (A)
√ 247,200 √ 0
Inventory (A) Prepaid Rent (A)
Prepaid Insurance (A) Equipment (A)
Accounts Payable (L) Note Payable (L)
2-37 Solutions
Solutions 2-38
2.35 a. continued.
Common Stock (SE) Retained Earnings (SE)
Sales Revenue (SE) Cost of Goods Sold (SE)
Patent
Insurance Expense (SE) Amortization Expense (SE)
Interest Expense (SE) Income Tax Expense (SE)
2-39 Solutions
2.35 continued.
b. REGALDO DEPARTMENT STORES
Income Statement
For the Month of February 2008
Sales Revenue .................................................................... $ 257,500
Expenses:
Cost of Goods Sold .......................................................... $ 162,400
Solutions 2-40
2.35 continued.
c. REGALDO DEPARTMENT STORES
Comparative Balance Sheet
January 31, February 28,
2008 2008
Assets
Cash ............................................................ $ 247,200 $ 124,800
Accounts Receivable ................................... 0 110,000
Inventories ................................................. 188,800 240,100
Liabilities and Shareholders' Equity
Accounts Payable ....................................... $ 32,000 $ 10,900
2.36 (Zealock Bookstore; analysis of transactions and preparation of income
statement and balance sheet.)
Cash (A) Accounts Receivable (A)
(1) 25,000 20,000 (3) (8) 148,200 142,400 (10)
