Business Accounting Accounting Homework Accounting Information Systems
Assign account numbers (from the list that follows) to the accounts for a company.
- Inventory
- Accounts Payable
- Lisa Cohen, Capital
- Lisa Cohen, Withdrawals
- Service Revenue
- Depreciation Expense
Choose from the following account numbers:
- 101
- 131
- 191
- 211
- 281
- 311
- 321
- 411
- 531
Inventory - 131
Accounts Payable - 211
Lisa Cohen, Capital - 311
Lisa Cohen, Withdrawals - 321
Service Revenue - 411
Depreciation Expense -531
The accounts of Madrid Jewelers show some of the company's adjusted balances before closing:
Total assets..........................................$ ?
Current assets.....................................43,600
Plant assets..........................................63,400
Total liabilities....................................... ?
Current liabilities...................................41,100
Long-term liabilities............................. ?
Ronaldo Madrid, capital........................ 8,600
Ronaldo Madrid, withdrawals................ 2,000
Total revenues.....................................40,000
Total expenses.....................................21,000
Compute the missing amounts. You must also compute ending owner's equity.
Net Income = $40,000 - $21,000 = $19,000
Total ending Owners Equity = $8,600 + $19,000 - $2,000 = $25,600
Total Assets = $43,600 + $63,400 = $107,000
Total Liabilities = $107,000 - $25,600 = $81,400
Long term Liabilities = $81,400 - $41,100 = $40,300
The following items are stored in cells of a spreadsheet:
Item Cell
Total Assets B14
Current Assets B5
Fixed Assets B9
Total liabilities C11
Current liabilities C8
Long-term liabilities C10
Write a spreadsheet formula to calculate
a. Current Ratio
Current Ratio = Current assets / Current liabilities
Current Ratio = B5 / C8
b. Total owner's equity
Total Owner’s equity = Total assets – Total liabilities
Total Owner’s equity = B14 – C11
c. Debt Ratio
Debt Ratio = Total liabilities / Total assets
Debt Ratio = C11 / B14
During April, St. Regis Sales Company completed these credit purchase transactions:
April 5 Purchased supplies, $555, from Sudan, Inc.
11 Purchased inventory, $1,200, from Greenbrier Corp. St. Regis uses a perpetual inventory system.
19 Purchased equipment, $14,300, from Saturn Co.
22 Purchased inventory, $2,210, from Milan, Inc.
Record these transactions first in the general journal (with explanations) and then in the purchases journal. Omit credit terms and posting references. Which procedure for recording is quicker? Why?
The purchase journal seems to be faster because information can be easily placed in the appropriate spots. You have to input less information, like the explanation and account titles (accounts payable, inventory, and supplies).
