Quiz.docx - Balance sheet preparationu2003 u2003 u2003...

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Balance sheet preparation Use the appropriate items from the following list LOADING... to prepare in good form Mellark's Baked Goods balance sheet at December 31, 2015. Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.) Mellark's Baked Goods Balance Sheet as of December 31, 2015 Assets Current assets: Cash $ 216 Accounts receivable 445 Inventories 380 Marketable securities 74 Total current assets $ 1,115 Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.) Gross fixed assets: Machinery and equipment $ 563 Vehicles 26 Furniture and fixtures 173 Land and buildings 324 Total gross fixed assets $ 1,086 Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.) Less: Accumulated depreciation $ 267 Net fixed assets $ 819 Total assets $ 1,934 Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.) Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 217 Notes payable 470 Accruals 57 Total current liabilities $ 744 Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.) Long-term debts $ 420 Total liabilities $ 1,164 Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-down menu and round to the nearest dollar.)
Stockholders’ equity: Common stock (at par) $ 90 Preferred stock 101 Paid-in capital in excess of par 363 Retained earnings 216 Total stockholders’ equity $ 770 Complete the fragment of the balance sheet below ($000): (Round to the nearest integer.)
Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. Ann has tried for the past 2 years to get Jack to agree to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann's side, and explain the positive side to incorporating the business. Next, take Jack's side, and state the advantages to remaining a partnership. Lastly, what information would you want if you were asked to make the decision for Ann and Jack? Which of the following statements are the advantages of a partnership compared to a corporation? (Choose all that apply.)
C. Lower income taxes.

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