Nguyen_Chapter4.xlsx - Student Name HADM 4100 Chapter 4 Homework Chapter 4 Question 1 Santos Charcuterie and Bakery Account Account Balance($ Accounts

Nguyen_Chapter4.xlsx - Student Name HADM 4100 Chapter 4...

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Student Name HADM 4100 Chapter 4 Homework
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Chapter 4, Question 1 Santos Charcuterie and Bakery Account Accounts Receivable: House Accounts 6,200 1,500 Accounts Receivable: Credit Cards 12,300 Money in Cashiers Banks 5,000 Cash on Deposit in Local Bank 80,200 Food Inventory 17,850 Paper and Supplies Inventory 5,175 Prepaid Expenses 27,950 Santos Charcuterie and Bakery Current Assets $ Cash 85,200 Accounts Receivable Net 17,000 Inventories 23,025 Prepaid Expenses 27,950 Total Current Assets 153,175 Account Balance ($) Allowance for Doubtful House Accounts a. Why must Sean address the issue of allowances for doubtful house accounts if he is to accurately calculate his total current assets? Answer: Because the category of allowance for doubful accounts represents the portion of accounts receivable that may not be actually be collectable by Sean's business. It is important for Sean to also identify the reasonable amount of debt which is unlikely to recover. 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? Answer: Two examples of prepaid expenses Sean may have incurred are prepaid insurance and prepaid rent.
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Chapter 4, Question 2 NEPTUNE SEAFOOD HOUSE DECEMBER 31, BALANCE SHEET TOTAL ASSETS $ 400,500 LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable $ 26,100 Payroll Taxes Payable 9,100 Sales Taxes Payable 15,100 Gift Cards Payable 2,400 Accrued Expenses 9,100 Current Portion, Long-Term Debt 13,600 Total Current Liabilities $ 75,400 Long Term Debt, net of Current Portion $ 150,250 Total Liabilities $ 225,650 Owners' Equity Original Investment $ 30,000 Retained Earnings $ 144,850 Total 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: It is $150,250. b. What is the amount of the operation’s Retained Earnings? Answer: It is $144,850.
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Chapter 4, Question 3 Balance Sheet Accounts: The Restaurant Kwan Manages Investments $373,256 Paid in Capital $486,486 Other Current Liabilities 73,954 Accumulated Depreciation 203,144 Building 627,998 Food Inventory 31,818 Accounts Payable 213,659 Common Stock 133,421 Long-Term Debt 395,315 Prepaid Expenses 15,000 Cash 85,986 Retained Earnings 477,500 Furnishings and Equipment 308,334 Land 309,080 Beverage Inventory 15,125 Supplies Inventory 3,850 Notes Payable 47,858 Allowance for Doubtful Accounts 4,000 Marketable Securities 196,154 Accounts Receivable 23,721 Dollar Amounts Cash $85,986 Marketable Securities $196,154 Net Receivables 19,721 Inventories 50,793 Prepaid expenses 15,000 Total Current Assets $367,654 Current Asset Accounts (In Order of Liquidity) a. What is the amount of the operation's total current assets? Answer: It is $367,654=. b. What is the first current asset account listed and why is it listed first? Answer: Cash is the first current asset account listed, because current assets are listed on the balance sheet in order of their liquidity and cash is the most liquid.
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