Mgmt 200 Assignment Soln 1-31-11

Mgmt 200 Assignment Soln 1-31-11 - Management 200...

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Management 200 – Introductory Financial Accounting– Spring 2011 Krannert School of Management - Purdue University Solutions to class assignment for January 31, 2011 Exercise 3-19 Requirement 1: December 31, 2012 Debit Credit Service Revenue 400,000 Retained Earnings 400,000 ( Close revenue accounts ) Retained Earnings 349,000 Salaries Expense 300,000 Rent Expense 15,000 Depreciation Expense 30,000 Interest Expense 4,000 ( Close expense accounts ) Requirement 2: Blue Hens Corporation Post-Closing Trial Balance December 31, 2012 Account Title Debit Credit Cash $ 11,000 Accounts receivable 140,000 Prepaid rent 5,000 Office supplies 25,000 Equipment 300,000 Accumulated depreciation $125,000 Accounts payable 11,000 Salaries payable 10,000 Interest payable 4,000 Notes payable 30,000 Common stock 200,000 Retained earnings 101,000 Totals $481,000 $481,000
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Additional Perspective 3-3 Requirement 1: Current assets equal $264,809 thousand. Current assets include cash and cash equivalents, short-term investments, inventory, and prepaid expenses and other assets. The ratio of current assets to total assets is 0.54 (= $264,809 / $488,903).
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This note was uploaded on 02/27/2012 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue.

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Mgmt 200 Assignment Soln 1-31-11 - Management 200...

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