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ORIE_3150_Homework__1_ProblemSet

ORIE_3150_Homework__1_ProblemSet - Building $45,000...

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ORIE 3150 Fall 2008 Homework #1 Due September 9, 2008 1. The Padre Corporation had the following assets and liabilities on the dates indicated. Padre Corporation was incorporated on January 1, 2002 with a cash investment of $100,000 from its shareholders. The corporation’s fiscal year ends on December 31 each year. Date Total Assets Total Liabilities December 31, 2002 $500,000 $350,000 December 31, 2003 $560,000 $405,000 December 31, 2004 $690,000 $500,000 During 2002, $15,000 in cash dividends were declared and paid, there were no additional investments.. In 2003, the cash dividends were zero, but investors invested an additional $80,000 cash in the business. In 2004, cash dividends of $20,000 were declared and paid, there were no additional investments. Find the annual net income for each year, for 2002, 2003, and 2004. 2. Listed in random order are figures for the Flick Co. as of Dec. 31, 2005. Sort the accounts, discard unneeded data, and prepare a balance sheet in the proper format. Accounts Payable $20,000
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Unformatted text preview: Building $45,000 Salaries Expense, Jan – Dec. 2005 $120,000 Contributed Capital $40,000 Note Payable (due in 2009) $5,000 Accounts Receivable $25,000 Cash $20,000 Equipment $20,000 Retained Earnings, Dec. 31, 2004 $25,000 Retained Earnings, Dec. 31, 2005 $45,000 Rent Expense, Jan – Dec 2005 $22,000 3. On July 5, 2008, Jackson Company acquired a machine for $100,000. The company had to pay an additional $5,000 for shipping and $10,000 for installation before the machine could be used. During July, the machine cost $2,000 (in electricity) to run. , and during August it cost $2,430 to run. On August 28, the machine required maintenance costing $2000. The machine is expected to have a useful life of 5 years. Show the value that Jackson Company shows for the machine on their balance sheet on Sept. 1, 2008. 4. Problem 1-3 from the textbook. 5. Case 1-1 from the textbook. 6. Problem 2-4 from the textbook. 7. Problem 2-5 from the textbook. 8. Problem 2-6 from the textbook....
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