Accounting 201 - Connect Assignments (1-13) PDF

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4/29/13

McGraw-Hill Connect | Student Performance

Score: 10.01

out of 10.01 points (100%)

[The following information applies to the questions displayed below.] Assume that you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31, 2012), the following financial data for the company are available:

Accounts Payable Accounts Receivable Cash Contributed Capital Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies

1.

$ 35,030 11,400 15,800 11,900 2,200 98,000 54,070 79,000 9,800 126,100 10,900

aw ard:

1.43 out of 1.43 points Required: 1. Prepare an income statement for the year ended December 31, 2012.

correct in your previous attem pt

APEC AEROSPACE CORPORATION Income Statement For the Year Ended December 31, 2012 Revenues: Sales Revenue

$

Total Revenues

126,100

126,100

Expenses: Operating Expenses

79,000

Other Expenses

9,800

Total Expenses Net Income

88,800 $

37,300

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Problem B

Difficulty: Medium

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

Required: 1. Prepare an income statement for the year ended December 31, 2012.

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McGraw-Hill Connect | Student Performance APEC AEROSPACE CORPORATION Income Statement For the Year Ended December 31, 2012 Revenues: Sales Revenue

$

Total Revenues

126,100 126,100

Expenses: Operating Expenses

79,000

Other Expenses

9,800

Total Expenses

88,800 $

Net Income

37,300

Explanation:

No further explanation details are available for this problem.

2.

aw ard:

1.43 out of 1.43 points 2. Prepare a statement of retained earnings for the year ended December 31, 2012.

correct in your previous attempt

APEC AEROSPACE CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2012 Retained Earnings, January 1, 2012 Add: Net Income

37,300

Less: Dividends Retained Earnings, December 31, 2012

2,200 $

35,100

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Difficulty: Medium

Problem B

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

2. Prepare a statement of retained earnings for the year ended December 31, 2012. APEC AEROSPACE CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2012 Retained Earnings, January 1, 2012 Add: Net Income

37,300

Less: Dividends

(2,200)

Retained Earnings, December 31, 2012

$

35,100

Explanation:

No further explanation details are available for this problem.

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3.

McGraw-Hill Connect | Student Performance aw ard: 1.43 out of 1.43 points 3. Prepare a balance sheet at December 31, 2012.

correct in your previous attempt

APEC AEROSPACE CORPORATION Balance Sheet At December 31, 2012 Assets Cash

$

15,800

Accounts Receivable

11,400

Supplies

10,900

Equipment

98,000

Total Assets

$

136,100

$

35,030

Liabilities Accounts Payable Notes Payable

54,070

Total Liabilities

89,100 Stockholders' Equity

Contributed Capital

11,900

Retained Earnings

35,100

Total Stockholders' Equity Total Liabilities and Stockholders' Equity

47,000 $

136,100

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Problem B

Difficulty: Medium

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

3. Prepare a balance sheet at December 31, 2012.

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McGraw-Hill Connect | Student Performance APEC AEROSPACE CORPORATION Balance Sheet At December 31, 2012 Assets Cash

$

15,800

Accounts Receivable

11,400

Supplies

10,900

Equipment

98,000

$

Total Assets

136,100

Liabilities Accounts Payable

$

Notes Payable

35,030 54,070

Total Liabilities

89,100 Stockholders' Equity

Contributed Capital

11,900

Retained Earnings

35,100

Total Stockholders' Equity Total Liabilities and Stockholders' Equity

47,000 $

136,100

Explanation:

No further explanation details are available for this problem.

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4.

McGraw-Hill Connect | Student Performance aw ard: 1.43 out of 1.43 points Required: 1-a. What net income or loss did the company report?

Net Income

$

correct in your previous attempt

37,300

1-b. Is the company profitable? Yes

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Difficulty: Hard

Problem B

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

Required: 1-a. What net income or loss did the company report? Net Income

$

37,300

1-b. Is the company profitable? Yes

Explanation: 1.

APEC Aerospace Corporation’s income statement reported net income of $37,300, suggesting that the company was profitable because revenues exceeded expenses.

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5.

McGraw-Hill Connect | Student Performance aw ard: 1.43 out of 1.43 points

You did NOT receive full credit for this question in previous attempt.

2. The company has paid $2,200 as dividend. What is the maximum amount of additional dividend the company could have paid? (Note: The company will not borrow any additional cash.) Maximum Additional Dividend

$

15,800

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Difficulty: Hard

Problem B

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

2. The company has paid $2,200 as dividend. What is the maximum amount of additional dividend the company could have paid? (Note: The company will not borrow any additional cash.) Maximum Additional Dividend

$

15,800

Explanation: 2.

APEC Aerospace Corporation’s statement of retained earnings reported a retained earnings balance of $35,100, after dividends of $2,200 had been subtracted. This suggests the company could have sustained additional dividends of $35,100, if sufficient cash were available to pay them. As it turns out, the company’s balance sheet reports cash of $15,800, suggesting that only $15,800 in additional dividends could be paid (without borrowing additional cash).

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6.

McGraw-Hill Connect | Student Performance aw ard: 1.43 out of 1.43 points

You did NOT receive full credit for this question in previous attempt.

3-a. What amount of total assets have been financed by the creditors and by the stockholders?

Financed by Creditors

$

89,100

Financed by Stockholders

$

47,000

3-b. Was the company financed mainly by creditors or stockholders? Creditors

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Difficulty: Hard

Problem B

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

3-a. What amount of total assets have been financed by the creditors and by the stockholders?

Financed by Creditors

$

89,100

Financed by Stockholders

$

47,000

3-b. Was the company financed mainly by creditors or stockholders? Creditors

Explanation: 3.

APEC Aerospace Corporation’s balance sheet reports total liabilities of $89,100 and stockholders’ equity of $47,000, indicating that the company is financed mainly by creditors.

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7.

McGraw-Hill Connect | Student Performance aw ard: 1.43 out of 1.43 points 4. Determine the amount of cash increase or decrease that would be shown in the statement of cash flows.

Cash

increased

by

$

correct in your previous attempt

15,800

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Difficulty: Hard

Problem B

Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

4. Determine the amount of cash increase or decrease that would be shown in the statement of cash flows. Cash

increased

by

$

15,800

Explanation: 4.

APEC Aerospace Corporation was founded at the beginning of the year, so it began with no cash. The balance sheet reports a cash balance of $15,800 at the end of the year. The reasons for this increase of $15,800 would be shown in the statement of cash flows.

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McGraw-Hill Connect | Student Performance

Score: 9.88

out of 9.96 points (99.20%)

[The following inform ation applies to the questions displayed below.]

Starbucks is a coffee company—a big coffee company. During a 10-year period, the number of Starbucks locations grew from 165 to over 8,800 stores in 50 countries. The following is adapted from Starbucks’s annual report for the year ended September 30, 2010, and dollars are reported in thousands.

Cash Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Noncurrent Assets Accounts Payable Short-term Bank Loans Long-term Debt Other Noncurrent Liabilities Contributed Capital Retained Earnings

$1,234,000 323,700 578,300 771,600 2,500,500 1,269,000 349,800 1,531,500 577,400 424,100 281,100 3,513,200

Assume that the following events occurred in the following quarter, which ended December 31, 2010. Dollars are in thousands. a. Paid $17,000 cash for additional other long-term assets. b. Issued additional shares of stock for $6,500 in cash. c. Purchased property, plant, and equipment; paid $14,000 in cash and signed additional long-term loans for $10,900. d. Sold, at cost, other long-term assets for $13,000 cash. e. Conducted negotiations to purchase a coffee farm, which is expected to cost $9,800.

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1.

McGraw-Hill Connect | Student Performance aw ard:

1.66 out of 1.66 points Required: 1. Analyze transactions (a)–(e) to determine their effects on the accounting equation. (Enter all amounts as positive values. Enter your answers in thousands.) =

Assets a.

Other Noncurrent Assets

+

17,000 17,000

Cash

−

b.

Cash

+

6,500

c.

Property, Plant, and Equipment

+

24,900

Cash

−

14,000

Cash

+

13,000

Other Noncurrent Assets

−

13,000

d.

You did NOT receive full credit for this question in previous attempt.

+

Liabilities

Stockholders’

Contributed Capital Long-term Debt

+

10,900

e.

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Problem B

Learning Objective: 02-02 Apply trans action analysis to accounting trans actions .

Learning Objective: 02-04 Prepare a clas sified balance sheet.

Difficulty: Hard

Learning Objective: 02-03 Us e journal entries and Taccounts to show how trans actions affect the balance sheet.

Learning Objective: 02-05 Interpret the balance sheet us ing the current ratio and an unders tanding of related concepts.

Required: 1. Analyze transactions (a)–(e) to determine their effects on the accounting equation. (Enter all amounts as positive values. Enter your answers in thousands.) =

Assets a.

Other Noncurrent Assets

+

17,000 17,000

Cash

−

b.

Cash

+

6,500

c.

Property, Plant, and Equipment

+

24,900

Cash

−

14,000

Cash

+

13,000

Other Noncurrent Assets

−

13,000

d.

+

Liabilities

Stockh

Contributed Capital Long-term Debt

+

10,900

e.

Explanation:

No further explanation details are available for this problem.

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2.

McGraw-Hill Connect | Student Performance aw ard:

1.58 out of 1.66 points 2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands.) Transaction a

General Journal Other Noncurrent Assets

Debit

Credit

17,000

Cash

b

17,000

Cash

6,500

Contributed Capital

c

6,500

Property, Plant, and Equipment

d

14,000

Cash

14,000

Long-term Debt

10,900

Cash

13,000

Other Noncurrent Assets

e

You did NOT receive full credit for this question in previous attempt.

13,000

No Journal Entry Required

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Problem B

Learning Objective: 02-02 Apply trans action analysis to accounting trans actions .

Learning Objective: 02-04 Prepare a clas sified balance sheet.

Difficulty: Hard

Learning Objective: 02-03 Us e journal entries and Taccounts to show how trans actions affect the balance sheet.

Learning Objective: 02-05 Interpret the balance sheet us ing the current ratio and an unders tanding of related concepts.

2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands.) Transaction a

General Journal Other Noncurrent Assets

Debit

Cash

b

Cash

17,000

6,500

Contributed Capital

c

d

Property, Plant, and Equipment

6,500

24,900

Cash

14,000

Long-term Debt

10,900

Cash Other Noncurrent Assets

e

Credit

17,000

13,000 13,000

No Journal Entry Required

Explanation:

No further explanation details are available for this problem.

3.

aw ard:

1.66 out of 1.66 points

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McGraw-Hill Connect | Student Performance 3. Summarize the journal entry effects from part 2 using T-accounts. (Enter your answers in thousands.) Cash Beg. Bal.

Accounts Receivable

1,234,000

(b)

6,500

17,000

(a)

(d)

13,000

14,000

(c)

Beg. Bal.

323,700

End. Bal.

323,700

End. Bal.

1,222,500

Beg. Bal.

578,300

Beg. Bal.

771,600

End. Bal.

578,300

End. Bal.

771,600

Inventories

Other Current Assets

Property, Plant, and Equipment Beg. Bal. (c)

End. Bal.

Other Noncurrent Assets

2,500,500

Beg. Bal.

24,900

1,269,000

(a)

2,525,400

17,000

End. Bal.

Accounts Payable

13,000

1,273,000

Short-term Bank Loans

Beg. Bal.

349,800

Beg. Bal.

1,531,500

End. Bal.

349,800

End. Bal.

1,531,500

Long-term Debt Beg. Bal.

Other Noncurrent Liabilities

577,400 10,900

End. Bal.

Beg. Bal.

424,100

End. Bal.

424,100

(c)

588,300

Contributed Capital Beg. Bal.

Retained Earnings

281,100 6,500

End. Bal.

(d)

Beg. Bal.

3,513,200

End. Bal.

3,513,200

(b)

287,600

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Problem B

Learning Objective: 02-02 Apply trans action analysis to accounting trans actions .

Learning Objective: 02-04 Prepare a clas sified balance sheet.

Difficulty: Hard

Learning Objective: 02-03 Us e journal entries and Taccounts to show how trans actions affect the balance sheet.

Learning Objective: 02-05 Interpret the balance sheet us ing the current ratio and an unders tanding of related concepts.

3. Summarize the journal entry effects from part 2 using T-accounts. (Enter your answers in thousands.)

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McGraw-Hill Connect | Student Performance Cash Beg. Bal.

Accounts Receivable

1...