ACCT 220 Hw - Some homework problems to help others if they don\'t understand the material. PDF

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Some homework problems to help others if they don't understand the material....

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Basic Exercises BE 1-1: On the given case for Ritts Roofing, the initial cost of the land was $275,000 when it was purchased on July 9th. This land also had an assessed value of $280,000 for tax purposes. Ritts Roofing also received an offer of $305,000 on December 22nd, from a national retail chain for the same land. From this, we can’t call it a transaction for the Cost Principle concept the historical cost will only be changed in the case where another transaction takes place and in the present case there’s no transaction that takes place to change the value of the land. So the value that should be recorded Ritts Roofing is $275,000. ➢ Problems BE 1-4 ,BE 1-5, BE 1-6, BE 1-7 were done on a Google Spreadsheet.

Exercises Ex 1-4 The total assets and total liabilities (in millions) of McDonald’s Corporation (MCD) and Starbucks Corporation (SBUX) follow: MCD = McDonalds SBUX = Starbucks McDonald’s $37,939 30,851

Assets Liabilities

Starbuck’s $14,330 8,446

Stockholders Equity of Company MCD: $37,939 - 30,851 = $7,088 million Stockholders Equity of Company SBUX: $14,330 - 8,446 = $5,884 million Ex 1-6 Assets X = $776,550 = $14,750,000 =

= Liabilities + Stockholders Equity $550,000 + $1,345,000 X + $588,800 $4,455,000 + X

A. $550,000 + $1,345,000 = $1,895,000 B. $776,550 - $588,800 = $187,700 C. $14,750,000 - $4,455,000 = $10,295,000 Ex 1-7 Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational had assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts:

A. Stockholders’ equity as of October 31, 20Y2. a. $5,250,000 - $1,600,000 = $3,650,000 B. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 20Y3. a. [($5,250,000 + $800,000) - ($1,600,000 + $330,000)] b. $6,050,000 - $1,930,000 c. = $4,120,000 C. Stockholders’ equity as of October 31, 20Y3, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 20Y3. a. [($5,250,000 - $600,000) - ($1,600,000 + $140,000)] b. $4,650,000 - $1,740,000 c. = $2,910,000 D. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 20Y3. a. [($5,250,000 + $440,000) - ($1,600,000 + $90,000)] b. $5,690,000 - $1,510,000 c. = $4,180,000 E. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or divi-dends paid. a. $6,140,000 - ($1,950,000 + $3,650,000) i. The $3,650,000 came from the Stockholders’ equity from part A. b. $6,140,000 - $5,600,000 c. = $540,000 Ex 1-22 A. a. Balance Sheet of Exxon Mobil Corporation i. Crude Oil Inventory ii. Equipment iii. Prepaid Taxes iv. Marketable Securities v. Long term debt vi. Notes and Loans payable vii. Notes receivable viii. Investments ix. Income taxes payable x. Accounts payable b. Income Statement i. Selling Expenses ii. Sales iii. Operating Expenses iv. Exploration Expenses

B. An item can appear on more than one financial statement. But the item can’t appear in both the income statement and balance sheet. Income statement records the revenue earned expenses made over a given period of time; Balance sheets shows the assets, liabilities, and the shareholders equity of a company on a given date. C. The accounting equation is relevant for Exxon Mobil Corporation for this equation is followed by every company to represent a relationship between the assets, liabilities, and shareholders equities. ➢ Problem Ex 1-25 was done on a Google Spreadsheet

Problems ➢ Problems PR 1-2A was done on a Google Sheet ➢ Problem PR 1-2B wasn’t done for the deadline was near...