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Land ac c ounts pay able ac c ounts rec eiv able cas

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Unformatted text preview: ement of financial position, often referred to as the balance sheet, is an expansion of the basic accounting equation. Worksheet The balanc e s heet items of the Merc er Company as of Dec ember 31, 2011, follow in random order. Land Ac c ounts Pay able Ac c ounts Rec eiv able Cas h $ 90,000 Offic e Equipment 43,800 Building 56,700 Capital Stoc k 36,300 Notes Pay able Retained Earnings $ 12,400 210,000 75,000 207,000 ? Compute the amount for Retained earnings . (Om it the "$" sign in your response.) Retained earnings $ 79,600 Prepare a balanc e s heet for the c ompany . (Om it the "$" sign in your response.) e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 4/14 11/18/13 Assignme nt Pr int Vie w MERCER COMPANY Balanc e Sheet Dec ember 31, 2011 Assets Cas h Ac c ounts rec eiv able Land Building Offic e equipment Total Liabilities & Owners' Equity Liabilities : Ac c ounts pay able Notes pay able Total Liabilities Owners ' equity : Capital s toc k Retained earnings Total $ $ $ 36,300 56,700 90,000 210,000 12,400 405,400 43,800 207,000 $ 250,800 75,000 79,600 $ 405,400 rev: 09_17_2012, 01_31_2013_QC_25688 Explanation: The amount of retained earnings is c alc ulated as the differenc e between total as s ets and liabilities plus c apital s toc k : $405,400 – ($250,800 + $75,000) = $79,600 4. awar d: 10 out of 10.00 points A number of bus ines s trans ac tions c arried out by Smalling Manufac turing Company are as follows : a. b. c. d. e. f. g. h. i. Borrowed money from a bank . Sold land for c as h at a pric e equal to its c os t. Paid a liability . Returned for c redit s ome of the offic e equipment prev ious ly purc has ed on c redit but not y et paid for. (Treat this the oppos ite of a trans ac tion in whic h y ou purc has ed offic e equipment on c redit.) Sold land for c as h at a pric e in ex c es s of c os t. (Hint: The differenc e between c os t and s ales pric e repres ents a gain that will be in the c ompany 's inc ome s tatement.) Purc has...
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