Chapter 4.xlsx - Chapter 4 Question 1 Santos Charcuterie...

Chapter 4, Question 1
Santos Charcuterie and Bakery
Account
6,200
1,500
Account
Balance ($)
Accounts Receivable: House
Accounts
Allowance for Doubtful House
Accounts
Accounts Receivable: Credit
Cards
a. 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 2
NEPTUNE SEAFOOD HOUSE DECEMBER 31, BALANCE S
TOTAL ASSETS $ 400,500
LIABILITIES AND OWNERS' EQUITY
Current Liabilities
Accounts Payable $ 26,100
Payroll Taxes Payable 9,100
Sales Taxes Payable 15,100
Gift Cards Payable 2,400
Accrued Expenses 9,100
Current Portion, Long-Term De 13,600
Total Current Liabilities $ 75,400
Long Term Debt, net of Current Portion $ 150,250
Total Liabilities $ 225,650
Owners' Equity
Original 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 3
Balance Sheet Accounts: The Restaurant Kwan Manages
Investments (long-term) $373,256 Paid in Capital
Other Current Liabilities 73,954 Accumulated Depreciation
Building 627,998 Food Inventory
Accounts Payable 213,659 Common Stock
Long-Term Debt 395,315 Prepaid Expenses
Cash 85,986 Retained Earnings
Furnishings and Equipment 308,334 Land
Beverage Inventory 15,125 Supplies Inventory
Notes Payable 47,858
Marketable Securities 196,154 Accounts Receivable
Dollar Amounts
Cash 85,986
Marketable Securities 196,154
Accounts Receivable 23,721