Aggie Company purchases Wal Mart stock and intends to hold the stock for two

Aggie company purchases wal mart stock and intends to

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_____ Aggie Company purchases Wal-Mart stock and intends to hold the stock for two years before selling.Aggie should record this as a current asset on the balance sheet because the stock is easily converted to cash._____ Retained Earnings is defined as net income over the life of the company._____ Recording assets at historical cost is considered a limitation of the balance sheet.3.List two key provisions of Sarbanes-Oxley: (1 pt. each)
1.2.4.A company’s trial balance after adjusting entries had the following balances on December 31, 2012.(You must show work to receive any partial credit)Cash$30,500Supply Expense1,700Dividends4,000Cost of Goods Sold64,000Note Payable (due 2018)95,000Accumulated Depreciation15,500Accounts Receivable29,000Interest Expense900Patent12,000Equipment37,500Advertising Expense3,000Accounts Payable10,000Sales Revenue145,000Depreciation Expense8,800Wages Payable18,000Prepaid Expense2,300Building120,000Salary Expense55,000Retained Earnings (1/1/12)54,050Supplies1,200Unearned Revenue2,600 Common StockA.What are the company’s total assets as of Dece31, 2012? $__________________________(2 pts.)B.What are total CurrentLiabilities as of December 31, 2012? ?$___________________________(2 pts.)C.(1) How much is gross profit for the year ending December 31, 2012? $ _________________________(2 pts.)(2) How much is net income for the year ending December 31, 2012? $__________________________(2 pts.)
D.What is the balance in the common stock account on December 31, 2012? $____________________________(2 pts.)5.A trial balance before adjustment for the Brown Company appears below as of December 31, 2012:Cash$29,500Accounts Receivable19,000Supplies1,500Prepaid Rent 4,800Equipment18,000Accumulated depreciation $ 3,000Accounts Payable7,100Note Payable7,000Unearned Revenues6,800Common Stock27,000Retained Earnings11,500Dividends1,000Service Revenue24,600Salary Expense7,200Advertising Expense 6,000$87,000$87,000Additional Information:a.Supplies used during the year amounted to $650.b.By year -end, Brown has earned 25% of the balance in its Unearned Revenue account.c.Salaries earned but not paid for at year end amounted to $450.d.Equipment was purchased on January 1, 2011 and is being depreciated over 6 years with no salvage value.e.On June 1, the company prepaid for 1 year of advertising expense at a rate of $500/month.f.The note is an 8-month, 6% loan obtained from the bank on September 1.g.On August 1, the company prepaid $4,800 for 6 months of rent.Required: A.Prepare all necessary adjusting entries as of December 31, 2012. (3 pts. each)(a) (e)(b) (f)
(c) (g)(d)B. Net Income as reported on the December 31, 2012 Income Statements is $ _________________________ (1 pt.)6.For each of the following transactions, determine the effect on the accounting equation and net income. Indicate + for increase and – for decrease. Leave the cell blank if there is no effect (2 pts for each transaction).

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