Accounting notes

Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. During the last several months, Peyton served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends’ parties as the host deejay. On June 1, 2014, Peyton established a proprietorship known as PS Musi...

PE 1-8A Ratio of liabilities to owner’s equity OBJ. 6 The following data were taken from Mesa Company’s balance sheet: Dec. 31, 2014 Dec. 31, 2013 Total liabilities $547,800 $518,000 Total owner’s equity 415,000 370,000 a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 2013, to December 31, 2014? PE 1-8B Ratio of liabilities to owner’s equity OBJ. 6 The following data were taken from Alvarado Company’s balance...

Using the following data for Sunset Travel Service as well as the statement of owner’s equity shown in Practice Exercise 1-5A, prepare a balance sheet as of April 30, 2014. Accounts payable $ 61,000 Accounts receivable 124,000 Cash 274,000 Land 450,000 Supplies 13,000 PE 1-6B Balance sheet OBJ. 5 Using the following data for Sentinel Travel Service as well as the statement of owner’s equity shown in Practice Exercise 1-5B, prepare a balance sheet as of August 31, 2014. Accounts payable $ 44,...

Financial information related to the proprietorship of Ebony Interiors for February and March 2014 is as follows: February 28, 2014 March 31, 2014 Accounts payable $310,000 $400,000 Accounts receivable 800,000 960,000 Cash 320,000 380,000 Justin Berk, capital ? ? Supplies 30,000 35,000 a. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2014. b. Determine the amount of net income for March, assuming that the owner made no additional investments or withdrawals during th...

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below. Cash receipts: Cash received from customers $637,500 Cash received from additional investment of owner 62,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 90,000 Cash paid to owner for personal use 17,500 The cash balance as of June 1, 2013, was $58,000. Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.

PE 1-7A Statement of cash flows OBJ. 5 A summary of cash flows for Sunset Travel Service for the year ended April 30, 2014, is shown below. Cash receipts: Cash received from customers $1,500,000 Cash received from additional investment of owner 75,000 Cash payments: Cash paid for operating expenses 1,215,000 Cash paid for land 240,000 Cash paid to owner for personal use 66,000 The cash balance as of May 1, 2013, was $220,000. Prepare a statement of cash flows for Sunset Travel Service for the ye...

One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different proprietorships: Freeman Heyward Jones Ramirez Beginning of the year: Assets $ 900,000 $490,000 $115,000 (d) Liabilities 360,000 260,000 81,000 $120,000 End of the year: Assets 1,260,000 675,000 100,000 270,000 Liabilities 330,000 220,000 80,000 136,000 During the year: Additional investment in the business (a) 150,000 10,000 55,000 Withdrawals from the business 75,0...

A, an Internet retailer, was incorporated and began operation in the mid-90s. On the statement of cash flows, would you expect A’s net cash flows from operating, investing, and financing activities to be positive or negative for its first three years of operations? Use the following format for your answers, and briefly explain your logic. First Year Second Year Third Year Net cash flows from operating activities negative Net cash flows from investing activities Net cash flows from financing ac...

TEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDER...

A summary of cash flows for Sunset Travel Service for the year ended April 30, 2014, is shown below. Cash receipts: Cash received from customers $1,500,000 Cash received from additional investment of owner 75,000 Cash payments: Cash paid for operating expenses 1,215,000 Cash paid for land 240,000 Cash paid to owner for personal use 66,000 The cash balance as of May 1, 2013, was $220,000. Prepare a statement of cash flows for Sunset Travel Service for the year ended April 30, 2014. PE 1-7B Statem...

TEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDERTEST BANK FOR FINANCIAL ACCOUNTING, 16TH EDITION, CARL WARREN, CHRISTINE JONICK, JENNIFER SCHNEIDER...

Peyton Smith enjoys listening to all types of music and owns countless CDs. Over the years, Peyton has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. During the last several months, Peyton served as a guest disc jockey on a local radio station. In addition, Peyton has entertained at several friends’ parties as the host deejay. On June 1, 2014, Peyton established a proprietorship known as PS Musi...

Lisa Duncan, a junior in college, has been seeking ways to earn extra spending money. As an active sports enthusiast, Lisa plays tennis regularly at the Phoenix Tennis Club, where her family has a membership. The president of the club recently approached Lisa with the proposal that she manage the club’s tennis courts. Lisa’s primary duty would be to supervise the operation of the club’s four indoor and 10 outdoor courts, including court reservations. In return for her services, the club wo...

PR 1-5B Transactions; financial statements OBJ. 4, 5 Bev’s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on November 1, 2014, are as follows: Cash, $39,000; Accounts Receivable, $80,000; Supplies, $11,000; Land, $50,000; Accounts Payable, $31,500. Business transactions during...

One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different proprietorships: Freeman Heyward Jones Ramirez Beginning of the year: Assets $ 900,000 $490,000 $115,000 (d) Liabilities 360,000 260,000 81,000 $120,000 End of the year: Assets 1,260,000 675,000 100,000 270,000 Liabilities 330,000 220,000 80,000 136,000 During the year: Additional investment in the business (a) 150,000 10,000 55,000 Withdrawals from the business 75,0...

A, an Internet retailer, was incorporated and began operation in the mid-90s. On the statement of cash flows, would you expect A’s net cash flows from operating, investing, and financing activities to be positive or negative for its first three years of operations? Use the following format for your answers, and briefly explain your logic. First Year Second Year Third Year Net cash flows from operating activities negative Net cash flows from investing activities Net cash flows from financing ac...

PR 1-5A Transactions; financial statements OBJ. 4, 5 D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on July 1, 2014, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000. Business transactions during July a...

On June 1 of the current year, Bret Eisen established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,200. c. Received cash from fees earned for managing rental property, $7,200. d. Paid rent on office and equipment for the month, $3,000. e. Paid creditors on account, $750. f. Billed customers for fees earned for managing rental p...

PE 1-7A Statement of cash flows OBJ. 5 A summary of cash flows for Sunset Travel Service for the year ended April 30, 2014, is shown below. Cash receipts: Cash received from customers $1,500,000 Cash received from additional investment of owner 75,000 Cash payments: Cash paid for operating expenses 1,215,000 Cash paid for land 240,000 Cash paid to owner for personal use 66,000 The cash balance as of May 1, 2013, was $220,000. Prepare a statement of cash flows for Sunset Travel Service for the ye...

A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below. Cash receipts: Cash received from customers $637,500 Cash received from additional investment of owner 62,500 Cash payments: Cash paid for operating expenses 475,000 Cash paid for land 90,000 Cash paid to owner for personal use 17,500 The cash balance as of June 1, 2013, was $58,000. Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.