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Chapter 4, Question 1Santos Charcuterie and BakeryAccountAccounts Receivable: House Accounts6,200 Account Balance ($)Allowance for Doubtful House Accountsa. Why must Sean address the issue of allowances for doubtful house accounts if he is to accurately calculate his total current assets?Answer: b. What are two examples of prepaid expenses Sean may have incurred and thus must address if he is to accurately calculate his total current assets?
Chapter 4, Question 2NEPTUNE SEAFOOD HOUSE DECEMBER 31, BALANCE SHEETTOTAL ASSETS$ 400,500 LIABILITIES AND OWNERS' EQUITYCurrent LiabilitiesAccounts Payable$ 26,100 Payroll Taxes Payable9,100 Sales Taxes Payable15,100 Gift Cards Payable2,400 Accrued Expenses9,100 Current Portion, Long-Term Debt13,600 Total Current LiabilitiesLong Term Debt, net of Current PortionTotal Liabilities$ 225,650 Owners' EquityOriginal Investment $ 30,000 Retained EarningsTotal Equity$ 174,850 TOTAL LIABILITIES AND OWNERS' EQUITY$ 400,500 a. What is the amount of the operation’s Long Term Debt; net of Current Portion?Answer: b. What is the amount of the operation’s Retained Earnings? Answer:
Chapter 4, Question 3Balance Sheet Accounts: The Restaurant Kwan ManagesInvestments$373,256 Paid in CapitalOther Current Liabilities73,954 Accumulated DepreciationBuilding627,998 Food InventoryAccounts Payable213,659 Common StockLong-Term Debt395,315 Prepaid ExpensesCash85,986 Retained EarningsFurnishings and Equipment 308,334 LandBeverage Inventory15,125 Supplies InventoryNotes Payable47,858 Allowance for Doubtful AccountsMarketable Securities196,154 Accounts ReceivableTotal Current AssetsCurrent Asset Accounts (In Order of Liquidity)a. What is the amount of the operation's total current assets?Answer: b. What is the first current asset account listed and why is it listed first?Answer: c. What is the last current asset account listed and why is it listed last?
Chapter 4, Question 4Balance Sheet AccountsInvestments$1,275,000Paid in Capital$3,000,000Other Current Liabilities1,590,000Accumulated Depreciation1,185,000Building3,250,000Inventories380,000Accounts Payable1,460,000Common Stock750,000Long-Term Debt1,800,000Retained Earnings2,865,000Cash587,500Land1,957,500Furnishings and Equipment1,850,000Net Receivables2,675,000Notes Payable335,000Other Assets170,000Marketable Securities840,000ASSETSCurrent AssetsCurrent LiabilitiesTotal Current LiabilitiesTotal Current AssetsLong-Term LiabilitiesTotal LiabilitiesProperty and EquipmentOwners’ EquityNet Property and EquipmentTotal Owners’ EquityTOTAL ASSETSAidan's Lodge Balance Sheet December 31 This YearLIABILITIES AND OWNERS’ EQUITY TOTAL LIABILITIES AND OWNERS’ EQUITY