Chat with AI
Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068
Verified
Step 1 of 2
a. | HOEMAN, INC. Balance Sheets December 31, 2011, and 2010
| |||
| Assets: | |||
| Current assets: |
| 2011 | 2010 |
| Cash |
| $ 52,000 | $ 46,000 |
| Accounts receivable | (1) | 124,000 | 134,000 |
| Inventory |
| 156,000 | 176,000 |
| Total current assets | (2) | $332,000 | $ 356,000 |
| Land | (3) | 140,000 | 140,000 |
| Buildings | (4) | 415,000 | 290,000 |
| Less: Accumulated depreciation |
| (120,000) | (105,000) |
| Total land&buildings | (5) | $435,000 | $ 325,000 |
| Total assets | (6) | $767,000 | $ 681,000 |
| Liabilities: |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable | (7) | $ 167,000 | $ 197,000 |
| Note payable |
| 155,000 | 124,000 |
| Total current liabilities |
| $ 322,000 | $321,000 |
| Long-term debt | (11) | $ 192,000 | $ 139,000 |
| Owners' Equity: |
|
|
|
| Common stock |
| $ 50,000 | $ 45,000 |
| Retained earnings | (9) | 203,000 | 176,000 |
| Total owners' equity | (10) | $ 253,000 | $ 221,000 |
| Total liabilities and owners' equity | (8) | $ 767,000 | $ 681,000 |
Calculations:
1. $134,000 – $10,000 = $124,000
2. $52,000 + $124,000 + $156,000 = $332,000
3. Land is carried at historical cost = $140,000
4. $290,000 + $125,000 = $415,000
5. $140,000 + $415,000 – $120,000 = $435,000
6. $332,000 + $435,000 = $767,000
7. $322,000 – $155,000 = $167,000
8. Same as total assets = $767,000
9. $176,000 + $94,000 – $67,000 = $203,000
10. $50,000 + $203,000 = $253,000
11. $767,000 – $253,000 – $322,000 = $192,000
Step 2 of 2
Why don’t you like this exercise?
Other
