KIMMEL_Acct_2e_ProblemCSolutions_ch02

Accounting: Tools for Business Decision Making

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
SOLUTIONS TO PROBLEMS PROBLEM 2-1C STARBUCKS CORPORATION Balance Sheet October 3, 2004 Assets Current assets Cash and cash equivalents. ................ $299,128 Short-term investments. ...................... 353,881 Accounts receivable. ........................... 140,226 Inventories. ........................................... 422,663 Prepaid exp. and other cur. assets. ... 134,997 Total current assets. .................... $1,350,895 Long-term investments. .............................. 306,926 Property and equipment, net. ..................... 1,551,416 Intangible assets. ......................................... 95,750 Other assets. ................................................ 85,561 Total assets. ......................................... $3,390,548 Liabilities and Stockholders’ Equity Current liabilities Accounts payable. ............................... $ 199,346 Accrued exp. and other cur. liabilities. .. 425,536 Unearned revenue-current. ................. 121,377 Total current liabilities. ................ $ 746,259 Long-term liabilities Long-term debt. .................................... 3,618 Other long-term liabilities. .................. 166,453 Total long-term liabilities. ............ 170,071 Total liabilities. .......................... 916,330 Stockholders’ equity Common stock. .................................... 996,078 Retained earnings. ............................... 1,478,140 Total stockholders’ equity. ................. 2,474,218 Total liabilities and stockholders’ equity $3,390,548 2-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PROBLEM 2-2C GRAHAM CORPORATION Income Statement For the Year Ended December 31, 2007 Revenues Service revenue. ..................................................... $77,000 Expenses Salaries expense. .................................................... $44,000 Depreciation expense. ............................................ 5,300 Insurance expense. ................................................ 3,900 Utilities expense. .................................................... 3,000 Repair expense. ...................................................... 1,800 Total expenses. ............................................... 58,000 Net income. ..................................................................... $19,000 GRAHAM CORPORATION Retained Earnings Statement For the Year Ended December 31, 2007 Retained earnings, January 1. ......................................................... $26,000 Add: Net income. ............................................................................. 19,000 45,000 Less: Dividends. ............................................................................... 7,000 Retained earnings, December 31. ................................................... $38,000 2-2
Background image of page 2
PROBLEM 2-2C (Continued) GRAHAM CORPORATION Balance Sheet December 31, 2007 Assets Current assets Cash. ........................................................................ $20,700
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 01/31/2010.

Page1 / 10

KIMMEL_Acct_2e_ProblemCSolutions_ch02 - SOLUTIONS TO...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online