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COMPREHENSIVE PROBLEM (Continued)
KRISTIN’S MAIDS CLEANING SERVICE
Balance Sheet
July 31, 2015
Assets
Current assets
Cash ................................................................. $6,600
Accounts receivable ....................................... 5,200
Supplies ........................................................... 100
Prepaid insurance ........................................... 1,650
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ........................................... $6,400
Salaries and wages payable ........................... 500
Total current liabilities ............................ $ 6,900
COMPREHENSIVE PROBLEM (Continued)
(e)
General Journal J2
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 31
Accounts Receivable ........................
112
1,300
Service Revenue ......................
400
1,300
31
Depreciation Expense .......................
711
200
Accumulated Depreciation—
Equipment .............................
158
200
31
Insurance Expense ...........................
722
150
Prepaid Insurance ....................
130
150
31
Supplies Expense .............................
631
700
Supplies ....................................
126
700
31
Salaries and Wages Expense ...........
726
500
Salaries and Wages Payable ...
212
500
(f)
General Journal J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 31
Service Revenue ...............................
400
6,600
Income Summary .....................
350
6,600
31
Income Summary ..............................
350
3,550
Salaries and Wages Expense ..
726
2,100
Depreciation Expense ..............
711
200
Insurance Expense ..................
722
150
Supplies Expense ....................
631
700
Gasoline Expense ....................
633
400
31
Income Summary ..............................
350
3,050
Retained Earnings ....................
320
3,050
31
Retained Earnings .............................
320
600
Dividends ..................................
332
600
COMPREHENSIVE PROBLEM (Continued)
(g) KRISTIN’S MAIDS CLEANING SERVICE
Post-Closing Trial Balance
July 31, 2015
Debit
Credit
Cash ..................................................................... $ 6,600
Accounts Receivable .......................................... 5,200
Supplies .............................................................. 100
Prepaid Insurance ............................................... 1,650
BYP 4-1 FINANCIAL REPORTING PROBLEM
(a) Total current assets were $44,988 million at September 24, 2011, and
$41,678 million at September 25, 2010.
(c) The asset classifications are similar to the text: (1) current assets,
2011.
BYP 4-2 COMPARATIVE ANALYSIS PROBLEM
(a)
(in millions)
PepsiCo
Coca-Cola
1.
Total current assets
17,441
25,497
2.
Net property, plant & equipment
19,698
14,939
3.
Total current liabilities
18,154
24,283
4.
Total equity
20,899
31,921
position than PepsiCo.
$79,974
$72,882
obligation.
BYP 4-3 COMPARATIVE ANALYSIS PROBLEM
(a)
(in millions)
Amazon
Wal-Mart
1.
Total current assets
17,490
54,975
2.
Net property, plant & equipment
4,417
109,603
3.
Total current liabilities
14,896
62,300
4.
Total stockholders’ (shareholders’) equity
7,757
71,315
(b) Current assets are cash and other resources that are reasonably ex-
pected to be realized in cash or sold or consumed within one year or
Amazon’s current assets were 17% greater than its current liabilities,
Wal-Mart’s stockholders’ equity represents a 20% larger percentage of
$71,315
$7,757
BYP 4-4 REAL-WORLD FOCUS
The solution is dependent upon the companies chosen by the student.
BYP 4-5 DECISION MAKING ACROSS THE ORGANIZATION
(a) WHITEGLOVES JANITORIAL SERVICE
Balance Sheet
December 31, 2015
Assets
Current assets
Cash ................................................ $ 6,500
Accounts receivable
($9,000 + $3,700) ......................... 12,700
Supplies ($5,200 – $2,700) ............. 2,500
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable due within one year ................. $10,000
Accounts payable ($2,500 + $500) .................. 3,000
BYP 4-5 (Continued)
WHITEGLOVES JANITORIAL SERVICE
Balance Sheet (Continued)
December 31, 2015
*Retained earnings as reported ............................. $24,000
Less: Janitorial supplies used ............................ $2,700
Insurance expired ($4,800 X 1/3) ............... 1,600
current assets exceed current liabilities by $10,650 ($24,900 – $14,250)
