ACCT 2110 Shawnee Community College Accounting Problems Worksheet

ACCT2110 Financial Accounting Chapter Two Financial Statements HomeworkProblem 1. The following are the major balance sheet classifications.
Current assets (CA)
Current liabilities (CL)
Long-term investments (LTI)
Long-term liabilities (LTL)
Property, plant, and equipment (PPE) Common stock (CS)
Intangible assets (IA)
Retained earnings (RE)
Instructions Classify each of the following financial statement items taken from Inshore Corporation’s balance sheet.
____ Accounts payable
____ Inventory
____ Accounts receivable
____ Investments
____ Accumulated depreciation—buildings ____ Land
____ Buildings
____ Mortgage payable
____ Cash
____ Supplies
____ Interest receivable
____ Equipment
____ Goodwill
____ Prepaid rent
____ Notes payable
____ Patents
____ Copyrights
____ Bonds payable
____ Salaries and wages payable
____ Unearned sales revenue
____ Income taxes payable
____ Notes receivable
Problem 2. The following information relates to Ty Ringo Co. for the year 2019.
Retained earnings, January 1, 2019 $47,000
Dividends
6,000
Sales revenue
92,500
Cost of goods sold – expense
39,000
Advertising expense $1,500
Rent expense
9,500
Utilities expense
3,400
Salaries expense
20,000
Instructions Prepare an income statement and a retained earnings statement for the year ending December 31, 2019.
Problem 3. The following items are taken from the 2017 balance sheet of Tahoe Inc. (All dollars are in thousands.)
Intangible assets
Common stock
Property and equipment, net
Accounts payable
Other assets
Long-term investments
Accounts receivable
Prepaid expenses and other current assets
Short-term investments
Retained earnings
Cash and cash equivalents
Long-term debt
Accrued expenses and other current liabilities
Unearned revenue—current
Other long-term liabilities
$3,031,623
5,684,300
531,696
48,205
481,832
1,042,575
483,951
94,549
2,688,252
1,417,146
823,723
750,000
853,115
279,387
146,048
Instructions Prepare a classified balance sheet for Tahoe Inc. as of December 31, 2017.
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Problem 4. These items are taken from the financial statements of Martin, Inc.
Prepaid insurance
Equipment
Salaries and wages expense
Utilities expense
Accumulated depreciation—
equipmentpayable
Accounts
Cash
Accounts receivable
Salaries and wages payable
Common stock
Depreciation expense
Retained earnings (beginning)
Dividends
Service revenue
Maintenance and repairs expense
Insurance expense
$2,400
30,000
34,000
2,100
7,600
7,200
6,100
2,900
3,000
6,000
4,300
14,000
2,600
51,000
2,600
1,800
Instructions Prepare an income statement, a retained earnings statement, and a classified balance sheet as of
December 31, 2017.
Problem 5 (optional). These financial statement items are for Snyder Corporation at year-end, July 31, 2018.
Salaries payable
Salaries expense
Utilities expense
Equipment
Accounts payable
Commission revenue
Rent revenue
Long-term note payable
Common stock
Cash
Accounts receivable
Accumulated depreciation
Dividends
Depreciation expense
Retained earnings (beginning of the year)
$ 2,080
51,700
22,600
18,500
4,100
61,100
8,500
1,800
16,000
24,200
9,780
6,000
4,000
4,000
35,200
Instructions
(a) Prepare an income statement and a retained earnings statement for the year. Snyder Corporation did not issue any
new stock during the year.
(b) Prepare a classified balance sheet at July 31.
(c) Compute the current ratio and debt to total assets ratio.
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