accounting - 1-2 Assume that Brandy Company acquires $1,400...

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1-2) Assume that Brandy Company acquires $1,400 cash from creditors and $1,800 cash from investors. The company then has an operating loss of $2,000 cash and goes out of business. Define the term business liquidation: According to the text book this term is defined as, " process of dividing up the assets and returning them to the resource providers. Creditors normally receive first priority in business liquidations; in other words, assets are distributed to creditors first. After creditor claims have been satisfied, the remaining assets are distributed to the investors of the business." What amount of cash will Brandy's creditors receive? $1,200 What amount of cash will Brandy's investors receive? none. 1-4) Annual reports normally include an income statement, statement of changes in equity, balance sheet, and statement of cash flows. Identify the financial statements on which each of the following titles or accounts would appear. If a title or an account appears on more than one statement, list all statements that would include it. Retained Earnings- statement of changes in stockholder equity Revenue- Income statement and statement of cash flow common stock- - statement of changes in stockholder equity and balance sheet and statement of cash flow. Financing activities- statement of cash flow Salaries expense- statement of cash flow land- Balance sheet ending cash balance- statement of cash balance beginning cash balance- balance sheet and statement of cash flow notes payable- balance sheet dividends- statements of changes in stockholders equity and statement of cash flow. 1-9) Ruff company was started on January 1, 2009. During 2009, the company experienced the following three accounting events (1) earned cash revenues of $13,500, (2) paid cash expenses of $9,200 and (3) paid a $500 cash dividend to its stockholders. These were the only events that affected the company during 2009. Write an accounting equation , and record the effects of each accounting event under the appropriate general ledger account headings.
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Prepare an income statement for the 2009 accounting period and a balance sheet at the end of 2009 for the ruff company. 2009 Accounting Equation Assets = Liabilities + Stockholders’ Equity Common Retained Event Cash = + Stock + Earnings 1. Cash revenues 13,500 NA NA 13,500 2. Paid expenses (9,200) NA NA (9,200) 3. Paid dividend (500) NA NA (500) Ending Balance 3,800 = -0- + -0- + 3,800 Ruff Company Year End Income Statement December 31, 2009 Revenue $13,500 Expense (9,200) Net Income $ 4,300 Ruff Company Balance Sheet December 31, 2009 Assets -Cash $ 3,800 Liabilities $ -0- Stockholders’ Equity -Common Stock $ -0- -Retained Earnings 3,800 Total Stockholders’ Equity 3,800
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Total Liabilities and Stockholders’ Equity $ 3,800 1-12) Dakota company experienced the following events during 2010. 1.
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accounting - 1-2 Assume that Brandy Company acquires $1,400...

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