Question

Problem 6

The following information is available for Mullen Company for the year ended December 31, 2017:

            Accounts payable                                                               4,700

            Stock investments (long-term)                                           8,400

            Accumulated depreciation, equipment                               4,000

            Retained earnings                                                            16,000

            Common stock                                                                    4,800

            Intangible assets                                                                 2,500

            Notes payable (due in 5 years)                                          6,000

            Accounts receivable                                                           1,500

            Cash                                                                                  2,600

            Debt investments (short-term)                                            3,000

            Land                                                                                  10,000

            Equipment                                                                           7,500

           

Use the above information can you prepare a classified balance sheet for the year ended December 31, 2017.

Problem 7

Sara Obermeyer decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (–) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders’ equity.

Transactions

   (1)     Sara Obermeyer invests $25,000 cash in exchange for common stock to start a pizza parlor business on June 1.

   (2)     Purchased equipment for $4,000 paying $2,000 in cash and the remainder due in 30 days.

   (3)     Purchased supplies for $1,200 cash.

   (4)     Received a bill from Campus News for $200 for advertising in the campus newspaper.

   (5)     Cash receipts from customers for pizza sales amounted to $1,500.

   (6)     Paid salaries of $200 to employees.

   (7)     Billed the Tiger Football Team $300 for pizzas ordered.

   (8)     Paid $200 to Campus News for advertising that was previously billed in Transaction 4.

   (9)     Sara Obermeyer was paid dividends of $1,200.

(10)     Incurred utility expenses for month on account, $100.

Trans-                          Accounts                                                   Accounts                Common      Retained

action          Cash +    Receivable + Supplies   + Equipment   =    Payable                      +     Stock    +          Earnings

   (1)

_____________________________________________________________

Balance

   (2)

_____________________________________________________________

Balance

   (3)

_____________________________________________________________

Balance

   (4)

_____________________________________________________________

Balance

   (5)

_____________________________________________________________

Balance

   (6)

_____________________________________________________________

Balance

   (7)

_____________________________________________________________

Balance

   (8)

_____________________________________________________________

Balance

   (9)

_____________________________________________________________

Balance

(10)

_____________________________________________________________

Totals

                                                                                                                

Answer 1