Problem 2

# Problem 2 - Date Account Titles and Explanation Debt Credit...

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Problem 2-6A a) Earnings per share : 2010 2009 \$70,000-\$0 =\$2.12 \$50,000-\$0 \$33,000 \$30,000 b) Current Assets 2010 2009 75,000-70,000= 5,000 70,000-62,000 = 8,000 c) Current Assets 2010 2009 Current Liabilities 80,000 =1.07:1 73,000 =1.04:1 75,000 70,000 d) Debt to total assets ratio 2010 2009 75,000 = .1% 70,000 =.1% 760,000 685,000 e) 2010 2009 87,000 – 45,000 – 20,000 = \$22,000 60,000 – 38,000 – 15,000 = \$7,000 f) Year 2010 Did better than year 2009 3-2A Assets = Liabilites = Stockholders’ equity Cash + office = Accounts + Common + Retained Earnings equipment Payable Stock Revenue - Expenses 1. +\$15,000 +\$15,000 Issued Stock 2. -700 -\$700 Rent Expense 3. +\$500 = \$500 5. -\$150 advertise News 9. +\$1,000 +\$1,000 Service Revenue 12. -\$200 -\$200 15. -\$4,200 -\$4,200 17. -\$2,500 -\$2,500 23. +\$1,500 +\$1,500 26. -\$5,000 -\$5,000 29. -\$2,000 -\$200 30. -\$150 -\$150

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3-4A General Journal
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Unformatted text preview: Date Account Titles and Explanation Debt Credit March 1 3 5 6 10 Cash Common stock (Issued stock for cash) Cash Land Building Equipment Advertising Expense Accounts Payable Prepaid Insurance Cash (Paid 1-year insurance policy) Golf Clubs & Equipment Notes Payable (Purchased golf clubs and other equipment. Payable in 30 days) \$50,000 \$23,000 \$9,000 \$6,000 \$1,600 \$2,400 \$50,000 \$23,000 \$9,000 \$6,000 \$1,600 \$2,400 18 19 25 30 30 31 Cash Golf fees (Received fees from customers) Accounts receivable Service Revenue Dividends Cash (Declared and Paid a cash dividend) Salaries Expense Cash Cash Paid Fully golden bear Company Cash Received Cash for golf fees \$1,200 \$500 \$700 \$4,700 \$800 \$1,200 \$500 \$700 \$4,700 \$800...
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## This note was uploaded on 04/18/2010 for the course ACCT 201 taught by Professor Prof.ck during the Spring '10 term at DeVry Chicago O'Hare.

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Problem 2 - Date Account Titles and Explanation Debt Credit...

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