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1- The owner’s equity is 1. subtracted from owner’s equity andthe net amount is equal to net income 2. added to assets and thetwo are equal to liabilities 3. subtracted from liabilities and thenet amount is equal to assets 4. added to liabilities and the twoare equal to assets

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2- 1. $7,000 of merchandise inventory was ordered on September2, 2009 2. $3,000 of this merchandise was received on September 5,2009 3. On September 6, 2009, an invoice dated September 4, 2009,with terms of 3/10, net 30 for $3,250 which included a $250 prepaidfreight cost, was received. 4. On September 10, 2009, $800 of themerchandise was returned to the seller. Based on the aboveinformation, what would be recorded as the cash payment if theinvoice is paid within the discount period? 1. $2,450 2. $2,200 3.$2,134 4. $2,384

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3- The statement of owner's equity shows 1. all the changes inthe owner's capital as a result of net income, net loss, additionalinvestments, and withdrawals 2. only net income, beginning andending capital 3. only total assets, beginning and ending capital4. only net income, beginning capital, and withdrawals

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4- Which of the following accounts usually has a debit balance?1. Freight-In 2. Allowance for Doubtful Accounts 3. Sales taxPayable 4. Purchase Discounts

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5- 1. $7,000 of merchandise inventory was ordered on September2, 2009 2. $3,000 of this merchandise was received on September 5,2009 3. On September 6, 2009, an invoice dated September 4, 2009,with terms of 3/10, net 30 for $3,250 which included a $250 prepaidfreight cost, was received. 4. On September 10, 2009, $800 of themerchandise was returned to the seller. Based on the aboveinformation, what would be recorded as net purchases amount afterall of the transactions have been recorded? 1. $2,384 2. $2,450 3.$2,200 4. $2,134

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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[The following informationapplies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 81,000
Accountsreceivable 132,000
Inventory 56,250
Plant and equipment,net of depreciation 214,000
Total assets $ 483,250
Liabilities and Stockholders’ Equity
Accountspayable $ 75,000
Common stock 346,000
Retainedearnings 62,250
Total liabilitiesand stockholders’ equity $ 483,250


alue:
10.00 points

Required information

Beech’s managers have made thefollowing additional assumptions and estimates:
1.

Estimated sales for July, August, September, and October will be$250,000, $270,000, $260,000, and $280,000, respectively.
2.

All sales are on credit and all credit sales are collected. Eachmonth’s credit sales are collected 45% in the month of sale and 55%in the month following the sale. All of the accounts receivable atJune 30 will be collected in July.
3.

Each month’s ending inventory must equal 20% of the cost of nextmonth’s sales. The cost of goods sold is 75% of sales. The companypays for 30% of its merchandise purchases in the month of thepurchase and the remaining 70% in the month following the purchase.All of the accounts payable at June 30 will be paid in July.
4.

Monthly selling and administrative expenses are always $46,000.Each month $5,000 of this total amount is depreciation expense andthe remaining $41,000 relates to expenses that are paid in themonth they are incurred.
5.

The company does not plan to borrow money or pay or declaredividends during the quarter ended September 30. The company doesnot plan to issue any common stock or repurchase its own stockduring the quarter ended September 30.


Required:
1.

Prepare a schedule of expected cash collections for July,August, and September. Also compute total cash collections for thequarter ended September 30.

Schedule of Expected Cash Collections
Month
July August September Quarter
From accounts receivable $0
From July sales 0
From August sales 0
From September sales 0
Total cash collections $0 $0 $0 $0
2-a.

Prepare a merchandise purchases budget for July, August, andSeptember. Also compute total merchandise purchases for the quarterended September 30.


Merchandise Purchases Budget
July August September Total
Budgeted cost of goodssold
Total needs
Required purchases
2-b.

Prepare a schedule of expected cash disbursements formerchandise purchases for July, August, and September. Also computetotal cash disbursements for merchandise purchases for the quarterended September 30.


Schedule of Cash Disbursements for Purchases
July August September Total
From accounts payable $0
From July purchases 0
From August purchases 0
From September purchases 0
Total cash disbursements $0 $0 $0 $0
3

4.Prepare a balance sheet as of September 30.

Beech Corporation
Balance Sheet
September 30
Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net
Total assets $0
Liabilities and Stockholders'Equity
Accounts payable
Common stock
Retained earnings
Total liabilities andstockholders' equity $0
.

Prepare an income statement for the quarter ended September30.

Beech Corporation
Income Statement
For the Quarter Ended September 30
Sales
Cost of goods sold
Gross margin 0
Selling and administrative expenses
Net operating income 0
Interest expense
Net income $0

Financial statements for E-Perform Inc follow:

E-Perform, Inc

Balance Sheet

December 31

2009 2008
Assets
Cash $97,800 $48,400
Accounts Receivable 75,800 43,000
Inventories 122,500 92,850
Prepaid Expenses 38,400 26,000
Available-for-Sale Securities 128,000 114,000
Property, plant and equipment 270,000 242,500
Accumulated Depreciation (50,000) (52,000)
Total Assets $682,500 $514,750
Liabilities and Shareholders' Equity
Accounts Payable $93,000 $77,300
Accrued Expenses Payable 11,500 7,000
Notes Payable 110,000 150,000
Common Shares 220,000 175,000
Retained Earnings 234,000 105,450
Accumulated other comprehensive income 14,000 0
Total liabilities and shareholders' equity $682,500 $514,750

Statement of Earnings:

Sales $492,780
Cost of Goods Sold 185,460
Gross Profit 307,320
Operating Expenses
Other operating expenses $62,410
Depreciation expense 46,500 108,910
Earnings from operations 198,410
Other expenses
Interest expense $4,730
Loss on sale of equipment 7,500 12,230
Earnings before income tax 186,180
Income tax expense 45,000
Net Earnings $141,180

Additional Information:

1. The available-for-sale securities were revalued to their fair value of $128,000 at the end of 2009.

2. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 note payable

3. Old equipment having an original cost of $57,500 was sold for $1,500

4. Accounts payable relate only to merchandise creditors

5. Notes payable were repaid during the year

**Instructions: Prepare the cash flow statement using the direct method.

I HAVEFILLED IN WHAT I THINK SOME OF THE ANSWERS SHOULD BE..I HAVE NOTCHECKED MY WORK..WE ONLY GET SO
MANYATTEMPTS..DIDNT WANT TO WASTE THEM.


3.
value:
5.00 points


Kenisha Morgan owns and operates Morgan's Furniture Emporium, Inc.The balance sheet totals for assets, liabilities, and owners'equity at August 1, 2010, are as indicated. Described here areseveral transactions entered into by the company throughout themonth of August.

P2-16 Requirement 1-3

Requirement 1:

Indicate the amount and effect (+ or -) of each transaction ontotal assets, total liabilities, and total owners' equity, and thencompute the new totals for each category. The first transaction isprovided as an illustration.


August 1, 2010, totals $ 700,000 $ 550,000 $ 150,000
August 3, borrowed $24,000 in cash from the bank

+24,000

+24,000

0
New totals $ 724,000 $ 574,000 $ 150,000
August 7, bought merchandise inventory valued at $38,000 onaccount

New totals $ $ $
August 10, paid $14,000 cash for operating expenses

New totals $ $ $
August 14, received $100,000 in cash from sales of merchandise thathad cost $66,000

New totals $ $ $
August 17, paid $28,000 owed on accounts payable

New totals $ $ $
August 21, collected $34,000 of accounts receivable

New totals $ $ $
August 24, repaid $20,000 to the bank plus $400 interest

New totals $ $ $
August 29, paid Kenisha Morgan a cash dividend of $10,000

New totals

$

 =

$

 +

$

Requirement 2:
(a) How much were total revenues and total expenses during August?(Omit the "$" sign in yourresponse.)

Total revenues $
Total expenses $

(b) What was the amount of net income (or loss) during August?(Omit the "$" sign in yourresponse.)

(Click to select)Net incomeNet loss $

Requirement 3:

What were the net changes during the month of August in totalassets, total liabilities, and total owner's equity? (Input all amounts aspositive values. Omit the "$" sign in yourresponse.)


Net Change
Total assets $
Total liabilities
Total owner's equity
Which of the following statement(s) is true? (Select all thatapply.)
Revenues decreased Kenisha Morgan's equity, and expenses anddividends increased it.
Interest is a "cost" of doing business.
Dividend is a "cost" of doing business.
Cash balance will be affected while paying off an accounts payableand collecting an accounts receivable.
When money is borrowed from the bank, the total assets and thetotal liabilities will increase.


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