HW1_Solution - EXHIBIT 135 WALGREEN COMPANY Analysis of...

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Chapter 1 Accounting: The Language of Business 1 EXHIBIT 1–35 WALGREEN COMPANY Analysis of Transactions (In Millions of Dollars) Assets Liabilities and Stockholders' Equity Property Stock- Inven- and Other Notes Accounts Other holders' Description of Transactions Cash + tories + Assets = Payable + Payable + Liabilities + Equity Balance May 31 854 4,020 6,085 = 1,956 2,033 6,970 1. Issuance of stock +30 = + 30 2. Issuance of stock +45 = + 45 3. Borrowing +12 = +12 4. Acquisition of equipment for cash –18 +18 = 5. Acquisition of inventory on account +90 = +90 6. Payments to creditors –35 = –35 7. Sale of equipment +2 - 2 = Balance June 2 845 4,110 6,146 = 12 2,011 2,033 7,045 WALGREEN COMPANY Balance Sheet June 2, 2003 (In Millions of Dollars) Assets Liabilities and Stockholders' Equity Cash $ 845 Notes payable $ 12 Inventories 4,110 Accounts payable 2,011 Property and other assets 6,146 Other liabilities 2,033 Stockholders' equity 7,045 Total $11,101 Total $11,101 +11,101 +11,101
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(20-30 min.) UNITED TECHNOLOGIES Balance Sheet September 30, 2003 (In Millions of Dollars) Liabilities and Assets Stockholders' Equity Cash $ 1,421 (1) Accounts payable $ 2,695 Inventories 3,963 Other liabilities 16,598 Property, plant and Long term debt 4,650 equipment 4,899 Total liabilities 23,943 (3) Other assets 23,779 Common stock $ 5,756 Other stockholders’ equity 4,363 (2b) Total stockholders' equity 10,119 (2a) Total liabilities and Total assets $34,062 stockholders' equity $34,062 Notations (1), (2), and (3) designate the answers to the requirements. (1) The $1,421 cash was computed by taking total assets minus all assets except cash. To calculate (2) and (3) note that total assets must equal total liabilities plus stockholders' equity, $34,062 million. Furthermore, (3), total liabilities, is $2,695 + $16,598 + $4,650 = $23,943. Therefore, total stockholders' equity is $34,062 – $23,943 = $10,119, denoted by (2a) above. Additional stockholders' equity is $10,119 – $5,756 = $4,363, denoted by (2b) above.
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Unknown during the Spring '08 term at Carnegie Mellon.

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HW1_Solution - EXHIBIT 135 WALGREEN COMPANY Analysis of...

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