Chapter 4, Question 1Santos Charcuterie and BakeryAccount6,200 1,500 Account Balance ($)Accounts Receivable: House AccountsAllowance for Doubtful House AccountsAccounts Receivable: Credit Cardsa. Why must Sean address the issue of allowances for doubtful house accounts if he is to accurately calculate his total current assets?b. What are two examples of prepaid expenses Sean may have incurred and thus must address if he is to accurately calculate his total current assets?
Chapter 4, Question 2NEPTUNE SEAFOOD HOUSE DECEMBER 31, BALANCE STOTAL ASSETS$ 400,500 LIABILITIES AND OWNERS' EQUITYCurrent LiabilitiesAccounts Payable$ 26,100 Payroll Taxes Payable9,100 Sales Taxes Payable15,100 Gift Cards Payable2,400 Accrued Expenses9,100 Current Portion, Long-Term De13,600 Total Current Liabilities$ 75,400 Long Term Debt, net of Current Portion$ 150,250 Total Liabilities$ 225,650 Owners' EquityOriginal Investment $ 30,000 Retained Earnings###Total Equity$ 174,850 TOTAL LIABILITIES AND OWNERS' EQUITY $ 400,500 a. What is the amount of the operation’s Long Term Debt; net of Current Portion?b. What is the amount of the operation’s Retained Earnings?
Chapter 4, Question 3Balance Sheet Accounts: The Restaurant Kwan ManagesInvestments (long-term)$373,256 Paid in CapitalOther Current Liabilities73,954 Accumulated DepreciationBuilding627,998 Food InventoryAccounts Payable213,659 Common StockLong-Term Debt395,315 Prepaid ExpensesCash85,986 Retained EarningsFurnishings and Equipment 308,334 LandBeverage Inventory15,125 Supplies InventoryNotes Payable47,858Marketable Securities196,154 Accounts ReceivableDollar AmountsCash85,986Marketable Securities196,154Accounts Receivable23,721