Chapter 2: Q11DQ (page 79)
What information is reported in a balance sheet?
The balance sheet depicts the information regarding assets, liabilities, and owner’s equity.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Question:Identify the items from the following list that are likely to serve as source documents.
a. Sales ticket d. Telephone bill g. Income statement
b. Trial balance e. Invoice from supplier h. Bank statement
c. Balance sheet f. Company revenue account i. Prepaid insurance
At the beginning of April, Bernadette Grechus launched a custom computer solutions company called Softworks. The company had the following transactions during April.
a. Bernadette Grechus invested \(65,000 cash, office equipment with a value of \)5,750, and \(30,000 of computer equipment in the company in exchange for common stock.
b. The company purchased land worth \)22,000 for an office by paying \(5,000 cash and signing a longterm note payable for \)17,000.
c. The company purchased a portable building with \(34,500 cash and moved it onto the land acquired in b.
d. The company paid \)5,000 cash for the premium on a two-year insurance policy.
e. The company provided services to a client and immediately collected \(4,600 cash.
f. The company purchased \)4,500 of additional computer equipment by paying \(800 cash and signing a long-term note payable for \)3,700.
g. The company completed \(4,250 of services for a client. This amount is to be received within 30 days.
h. The company purchased \)950 of additional office equipment on credit.
i. The company completed client services for \(10,200 on credit.
j. The company received a bill for rent of a computer testing device that was used on a recently completed job. The \)580 rent cost must be paid within 30 days.
k. The company collected \(5,100 cash in partial payment from the client described in transaction i.
l. The company paid \)1,800 cash for wages to an assistant.
m. The company paid \(950 cash to settle the payable created in transaction h.
n. The company paid \)608 cash for minor maintenance of the company’s computer equipment.
o. The company paid \(6,230 cash in dividends.
p. The company paid \)1,800 cash for wages to an assistant.
q. The company paid $750 cash for advertisements on the web during April.
Required
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
Question:Refer to Apple’s financial statements in Appendix A for the following questions.
Required
3. Compute its debt ratio for each of the fiscal years ended September 26, 2015, and September 27, 2014. (Report ratio in percent and round it to one decimal.)
Identify the four financial statements of a business.
Refer to Apple’s financial statements in Appendix A for the following questions.
Required
1. What amount of total liabilities does Apple report for each of the fiscal years ended September 26, 2015, and September 27, 2014?
What do you think about this solution?
We value your feedback to improve our textbook solutions.
