Busi293.Assignment1.Solution.Summer2012

Alternativelyevery1ofassetsisfinancedbyapproximately04

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Unformatted text preview: proximately $0.45 of liabilities [L ÷ A = $107,000 ÷ $239.000 = 0.45]. CP2–7 (12 marks) Req. 1 (4 marks) Dewey, Cheetum and Howe, Inc. Statement of Financial Position As at December 31, 2010 Assets Cash Accounts receivable Inventory Total current assets Furniture and fixtures Delivery truck (net) Buildings (net) Total assets Liabilities Accounts payable Payroll taxes payable Total current liabilities Notes payable Mortgage payable Total liabilities Shareholders' Equity Share capital Accumulated deficit1 Total shareholders' equity Total liabilities and shareholders' equity $ 1,000 8,000 8,000 17,000 52,000 12,000 60,000 $141,000 $ 16,000 13,000 29,000 15,000 50,000 94,000 80,000 (33,000) 47,000 $141,000 1 Retained earnings as presented $5,000 – (98,000, building at market – 60,000, building at cost) = $5,000 – 38,000 = $(33,000) CP2–7 (continued) Req. 2 (8 marks) Dear ___________, I corrected the statement of financial position for Dewey, Cheetum and Howe, Inc. Primarily, I reduced the amount reported for buildings to $60,000...
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This note was uploaded on 02/01/2013 for the course BUSI 293 taught by Professor Aziz during the Summer '12 term at UBC.

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