HW#2 - Accounts Receivable 3,000 3,000 Total Current Assets...

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TRANSACTIONS a. Note Receivable (Long-Term) (+A) 7,000 Cash (-A) 7,000 b. Equipment (+A) 18,000 Cash (-A) 6,000 Notes Payable (Long-Term) (+L) 12,000 c. Cash (+A) 12,000 Contribued Capital (+SE) 12,000 d. Cash (+A) 12,000 Notes Payable (Short-Term) (+L) 12,000 e. Investment (Short-Term) (+A) 9,000 Cash (-A) 9,000 f. No Transaction g. Intagible Assets (+A) 3,000 Cash (-A) 3,000 h. Cash (+A) 1,000 Inventory (-A) 1,000 i. Building (+A) 25,000 Cash (-A) 9,000 Notes Payable (Long-Term) (+L) 16,000 UPDATED ACCOUNT BALANCES (YEAR END 2010) Cash $12,000  Investment (Short-Term) 11,000 Accounts Receivable 3,000 Inventory 23,000 Notes Receivable (Long-Term) 8,000 Equipment 66,000 Building 115,000 Intangible Assets 6,000 Accounts Payable 15,000 Rent Payable 2,000 Notes Payable (Short-Term) 19,000 Notes Payable (Long-Term) 76,000 Contributed Capital 102,000 Retained Earnings 30,000 Tanco Co. Consolidated Balance Sheets December 31,December 31, 2009 2010 Assets Current Assets Cash $21,000  $12,000  Investment (Short-Term) 2,000 11,000
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Unformatted text preview: Accounts Receivable 3,000 3,000 Total Current Assets 26,000 26,000 Inventory 24,000 23,000 Notes Receivable (Long-Term) 1,000 8,000 Equipment 48,000 66,000 Building 90,000 115,000 Intangible Assets 3,000 6,000 Total Assets 192,000 244,000 Liabilities & Stockholder's Equity Current Liabilities Accounts Payable 15,000 15,000 Rent Payable 2,000 2,000 Notes Payable (Short-Term) 7,000 19,000 Total Current Liabilities 24,000 36,000 Notes Payable (Long-Term) 48,000 76,000 Stockholder's Equity Contributed Capital 90,000 102,000 Retained Earnings 30,000 30,000 Total Stockholder's Equity 120,000 132,000 Total Liabilities & Stockholder's Equit 192,000 244,000 Financial Leverage Ratio ($244,000 + $192,000) / 2 1.73 ($132,000 + $120,000) / 2 This ratio suggests that Tanco Co. uses slightly more equity than debt to aquire its assets....
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