Question

1. 7. Jaden Iman is completing the year‐end comparative balance sheet for the Coolidge Hotel. The format of the balance sheet is designed to compare the current year to the prior year and includes the amount of dollar and percentage change experienced by the operation. Much of the information for the balance sheet has been entered by Jaden but some is missing. Insert the missing information in the balance sheet. Then, answer the questions that follow.

   Coolidge Hotel Balance Sheet

   	Current Year ($)	Prior Year	$ Change	% Change
   ASSETS
   Current Assets
   Cash
   Cash in House Banks	34,500		4,500	15.0%
   Cash in Demand Deposits		430,000
   Total Cash	484,750
   Short‐Term Investments	250,000	150,000	100,000	66.7%
   Receivables
   Accounts Receivable		285,550	29,450	10.3%
   Notes Receivable	150,000	250,000	(100,000)	−40.0%
   Total Receivables	465,000	535,550	(70,550)	−13.2%
   Less Allowance for Doubtful Accounts	(31,500)	(28,555)	(2,945)	10.3%
   Net Receivables		506,995	(73,495)	−14.5%
   Due from Management Company	15,000	20,000	(5,000)	−25.0%
   Food Inventories	72,500	69,750	2,750	3.9%
   Beverage Inventories	38,520	42,550	(4,030)	−9.5%
   Gift Shop Inventories	6,255	6,950
   Supplies Inventories	12,150	11,825	325	2.7%
   Prepaid Expenses	156,000	120,100	35,900	29.9%
   Deferred Income Taxes—Current	48,000	35,000	13,000	37.1%
   Total Current Assets			93,505
   Investments	272,500	274,150	(1,650)	−0.6%
   Property and Equipment
   Land	3,000,000	3,000,000	—	0.0%
   Building	18,500,000	18,500,000	—	0.0%
   Leaseholds and Leasehold improvements	4,037,000	3,850,000	187,000	4.9%
   Furnishings and Equipment	3,288,000	3,105,000	183,000	5.9%
   Total Property and Equipment	28,825,000	28,455,000	370,000	1.3%
   Less Accumulated Depreciation and Amortization		(2,975,000)		20.2%
   Net Property and Equipment	25,250,000	25,480,000	(230,000)	−0.9%
   Other Assets
   Intangible Assets	100,000	100,000	—	0.0%
   Deferred Income Taxes—Non‐current	66,000	58,000	8,000	13.8%
   Operating Equipment	110,000	65,000	45,000	69.2%
   Restricted Cash	95,000	95,000	—	0.0%
   Total Other Assets	371,000	318,000	53,000	16.7%
   TOTAL ASSETS
   LIABILITIES AND OWNERS' EQUITY
   Current Liabilities
   Notes Payable
   Banks	17,500	16,250	1,250	7.7%
   Others	8,000	7,500	500	6.7%
   Total Notes Payable	25,500	23,750	1,750	7.4%
   Accounts Payable
   Accrued Expenses	45,000	42,500	2,500	5.9%
   Advance Deposits	45,500	42,250	3,250	7.7%
   Income Taxes Payable	85,000	78,000	7,000	9.0%
   Deferred Income Taxes—Current	40,000	35,000	5,000	14.3%
   Current Maturities of Long‐Term Debt	420,000	695,000	(275,000)	−39.6%
   Other	50,000	58,000	(8,000)	−13.8%
   Total Current Liabilities	881,175	1,095,250	(214,075)	−19.5%
   Long‐Term Debt, Net of Current Maturities
   Mortgage Note	16,850,000			−6.4%
   Obligations Under Capital Leases	490,000	385,000	105,000	27.3%
   Total Long‐Term Liabilities	17,340,000	18,385,000	(1,045,000)	−5.7%
   Owners' Equity
   Common Stock	1,000,000	1,000,000	—	0.0%
   Paid in Capital	5,250,000	5,250,000	—	0.0%
   Retained Earnings		1,765,070
   Total Owners' Equity	9,189,000	8,015,070	1,173,930	14.6%
   TOTAL LIABILITIES AND OWNERS' EQUITY

Answer 1

	Current Year ($)	Prior Year	$ Change	% Change
ASSETS
Current Assets
Cash
Cash in House Banks	34,500	30,000	4,500	15.00%
Cash in Demand Deposits	450,250	430,000	20,250	4.71%
Total Cash	484,750	460,000
Short‐Term Investments	250,000	150,000	100,000	66.70%
Receivables
Accounts Receivable	315,000	285,550	29,450	10.30%
Notes Receivable	150,000	250,000	-100,000	−40.0%
Total Receivables	465,000	535,550	-70,550	−13.2%
Less Allowance for Doubtful Accounts	-31,500	-28,555	-2,945	10.30%
Net Receivables	433,500	506,995	-73,495	−14.5%
Due from Management Company	15,000	20,000	-5,000	−25.0%
Food Inventories	72,500	69,750	2,750	3.90%
Beverage Inventories	38,520	42,550	-4,030	−9.5%
Gift Shop Inventories	6,255	6,950	-695	-10.0%
Supplies Inventories	12,150	11,825	325	2.70%
Prepaid Expenses	156,000	120,100	35,900	29.90%
Deferred Income Taxes—Current	48,000	35,000	13,000	37.10%
Total Current Assets	1,516,675	1,423,170	93,505	6.57%
Investments	272,500	274,150	-1,650	−0.6%
Property and Equipment
Land	3,000,000	3,000,000	—	0.00%
Building	18,500,000	18,500,000	—	0.00%
Leaseholds and Leasehold improvements	4,037,000	3,850,000	187,000	4.90%
Furnishings and Equipment	3,288,000	3,105,000	183,000	5.90%
Total Property and Equipment	28,825,000	28,455,000	370,000	1.30%
Less Accumulated Depreciation and Amortization	-3,575,000	-2,975,000	-600,000	20.20%
Net Property and Equipment	25,250,000	25,480,000	-230,000	−0.9%
Other Assets
Intangible Assets	100,000	100,000	—	0.00%
Deferred Income Taxes—Non‐current	66,000	58,000	8,000	13.80%
Operating Equipment	110,000	65,000	45,000	69.20%
Restricted Cash	95,000	95,000	—	0.00%
Total Other Assets	371,000	318,000	53,000	16.70%
TOTAL ASSETS	27,410,175	27,495,320	-85,145	-0.31%
LIABILITIES AND OWNERS' EQUITY
Current Liabilities
Notes Payable
Banks	17,500	16,250	1,250	7.70%
Others	8,000	7,500	500	6.70%
Total Notes Payable	25,500	23,750	1,750	7.40%
Accounts Payable
Accrued Expenses	45,000	42,500	2,500	5.90%
Advance Deposits	45,500	42,250	3,250	7.70%
Income Taxes Payable	85,000	78,000	7,000	9.00%
Deferred Income Taxes—Current	40,000	35,000	5,000	14.30%
Current Maturities of Long‐Term Debt	420,000	695,000	-275,000	−39.6%
Other	50,000	58,000	-8,000	−13.8%
Total Current Liabilities	881,175	1,095,250	-214,075	−19.5%
Long‐Term Debt, Net of Current Maturities
Mortgage Note	16,850,000	18002137	-1,152,137	-6.40%
Obligations Under Capital Leases	490,000	385,000	105,000	27.30%
Total Long‐Term Liabilities	17,340,000	18,385,000	-1,045,000	−5.7%
Owners' Equity
Common Stock	1,000,000	1,000,000	—	0.00%
Paid in Capital	5,250,000	5,250,000	—	0.00%
Retained Earnings	2,939,000	1,765,070	1,173,930	66.51%
Total Owners' Equity	9,189,000	8,015,070	1,173,930	14.60%
TOTAL LIABILITIES AND OWNERS' EQUITY	27,410,175	27,495,320	-85,145	-0.31%

*If you have any doubts let me know in the comment section. Please give your valuable feedback.