FMGT 2293 Assignment #2

FMGT 2293 Assignment #2 - FMGT 2293 Assignment#2 2-34 Seung...

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FMGT 2293 Assignment #2 Seung Hun Han ID #: 100165736 2-34 The Tree Top Restaurant Ltd. Balance Sheet As at December 31, 2008 ASSETS Current assets Cash $ 63,000 Accounts receivable 100,000 Inventory 46,000 Prepaid insurance 8,000 Total current assets $217,000 Non-current assets Furniture and equipment 70,000 Buildings 220,000 Land 100,000 Total Assets $607,000 LIABILITIES & SHAREHOLDER’S EQUITY Current liabilities Accounts payable $ 82,000 Taxes payable 5,000 Wages payable 10,000 Non-current liabilities Bank loan 250,000 Total liabilities $347,000 Shareholder’s equity Common shares $ 200,000 Retained earnings 60,000 Total shareholder’s equity 260,000 Total Liabilities and Shareholder’s $607,000 equity 2-36 a) Assets = Liabilities + Shareholder’s Equity 1. +$200,000 (cash) = + +$200,000 (common shares) 2. +$100,000 (cash) = +$100,000 (loan payable) 3. -$220,000 (cash) +$70,000 (land) +$150,000 (building) 4. +$110,000 (inventory) = +$110,000 (accounts payable) 5. +$30,000 (cash) = + +$202,000 [retained earnings +$172,000 (sales revenue)] (accounts receivable) 6. -$95,000 (cash) = -$95,000 (accounts payable) 7. +$160,000 (cash) -$160,000 (accounts receivable) 8. -$70,000 (cash)
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+$70,000 (invest) 9. +$40,000 (cash) = +$3,000 + -$43,000 [retained earnings (wages payable) (wages expense)] 10. -$7,333* (cash) = +$667 + -$8,000 [retained earnings (interest payable) (interest expense)]
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