M9-Chp-01-3-Prb-Accounting-Review

M9-Chp-01-3-Prb-Accounting-Review - Assume corporation does...

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File: 9cb14175a20acf208d38e4dbd369c562354a7708.xls Page 1 of 1 Julie Corporation Julie organized a corporation on Jan. 1, 2009. The corporation bought a building that contains business offices. Julie's corp. rents these offices. Balances - 12-31-09 Cash 10,000 Building (see note below) 200,000 Accumulated Depreciation 4,000 Mortgage Payable - 10% 80,000 Common Stock ($10 Par) 100,000 Retained Earnings Rent Revenue 48,000 Interest Expense 8,000 Depreciation Expense 4,000 Utilities and Property Taxes 10,000 $232,000 $232,000 Note: Ignore any allocation of acquisition cost to land.
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Unformatted text preview: Assume corporation does not pay income taxes. 1. How much did Julie invest in the corporation? 2. What was the net income in 2009 3. What balance will be reported for retained earnings at the end of 2009? 4. What is the book value of the building at the end of 2009? 5. What is the estimated life of the building? 6. How many shares of stock were issued to Julie? 7. What is earnings per share for 2009? 8. What is rate of return on initial investment (ROI)? 9. What is return on beginning equity (ROE)?...
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