Module3_Posted-Homework

Module3_Posted-Homework - than book value F. Merchandise is...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
+ 0 0 0 0 0 -- 0 -- 0 -- -- Posted Homework This exercise is designed to refresh your understanding of basic accounting concepts and test your knowledge of income statements and balance sheets and the impact of various transactions and them. Show the effect of the following transactions listed below on the total assets, current ratio and net income of the firm. Use (+) to represent an increase, (--) to depict a decrease, and (0) if there is no change. Assume the current ratio prior to the transaction is greater than 1.0. This exercise may be an attachment to your posting. Total Current Impact Current Ratio on Net Assets Income
Background image of page 1

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

View Full DocumentRight Arrow Icon
A. Cash is acquired through issuance of additional common stock B. Merchandise is sold for cash C. Federal income tax due for the previous year is paid D. A fixed asset is sold for less than book value E. A fixed asset is sold for more
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: than book value F. Merchandise is sold on credit G. Payment is made to trade creditors for previous purchases H. A cash dividend is declared and paid I. Cash is obtained through short-term bank loans J. Short-term notes receivable are sold at a discount K. Marketable securities are sold below cost L. Advances are made to employees M. Current operating expenses are paid N. Short term promissory notes are issued to trade creditors in exchange for past due accounts payable + + + + -- + + + --+ + + + + + -+ -- -- + -- -- -- ---- -- --0 0 O. Ten-year notes are issued to pay-off accounts payable P. A fully depreciated asset is retired Q. Accounts receivable are collected R. Equipment is purchased with short term notes S. Merchandise is purchased on credit T. The estimated taxes payable are increased-- -- --...
View Full Document

Page1 / 3

Module3_Posted-Homework - than book value F. Merchandise is...

This preview shows document pages 1 - 3. Sign up to view the full document.

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