College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 15, Problem 8SPB
INCOME STATEMENT, STATEMENT OF OWNER’S EQUITY, AND BALANCE SHEET Backlund Farm Supply completed the work sheet on page 609 for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $50.000. The current portion of Mortgage Payable is $1,000.
REQUIRED
- 1. Prepare a multiple-step income statement.
- 2. Prepare a statement of owner s equity.
- 3. Prepare a balance sheet.
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Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin's transactions
related to the note payable information below:
Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan
with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan
payment is due June 30.
See amortization table below:
Vehicle Loan Amortization
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Date
6/30/22
9/30/22
12/31/22
3/31/23
6/30/23
9/30/23
12/31/23
3/31/24
6/30/24
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
12/31/25
3/31/26
6/30/26
9/30/26
12/31/26
3/31/27
$47,210
8.00%
6
4
2,496
Interest Principal Payment Balance
47,210
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44,075
42,461
944 1,552
913
1,583
882
1,615
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2,496
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2,496
1,647 2,496
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748
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2,496
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2,496
1,818 2,496
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713
678
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604 1,892 2,496
567 1,930 2,496
323
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1,968 2,496
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2,496
2,496
2,496…
Balance sheet classification
At the balance sheet date, a business owes a mortgage note payable of $375,000, the terms of which provide for monthly payments of $1,250.
How should the liability be classified on the balance sheet?
Balance sheet classification
At the balance sheet date, a business owes a mortgage note payable of $648,000, the terms of which provide for monthly payments of
$1,800.
How should the liability be classified on the balance sheet?
Current liability: $
Long-term liability: $
Chapter 15 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TFCh. 15 - Prob. 3TFCh. 15 - Prob. 4TFCh. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MCCh. 15 - Prob. 2MCCh. 15 - Prob. 3MCCh. 15 - Prob. 4MCCh. 15 - Prob. 5MC
Ch. 15 - Prob. 1CECh. 15 - Prob. 2CECh. 15 - 1. L01 Prepare a multiple-step income statement...Ch. 15 - Prob. 4CECh. 15 - Prob. 5CECh. 15 - Prob. 6CECh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Describe how to calculate the following ratios (a)...Ch. 15 - Where is the information obtained that is needed...Ch. 15 - Explain the function of each of the four closing...Ch. 15 - What is the purpose of a post-closing trial...Ch. 15 - What is the primary purpose of reversing entries?Ch. 15 - What is the customary date for reversing entries?Ch. 15 - What adjusting entries should be reversed?Ch. 15 - REVENUE SECTION. MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial statements...Ch. 15 - CLOSING ENTRIES From the work sheet on page 600,...Ch. 15 - REVERSING ENTRIES From the work sheet used in...Ch. 15 - Prob. 7SEACh. 15 - INCOME STATEMENT. STATEMENT OF OWNER S EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - WORK SHEET, ADJUSTING, CLOSING, AND REVERSING...Ch. 15 - REVENUE SECTION, MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial...Ch. 15 - CLOSING ENTRIES From the work sheet on page 607...Ch. 15 - Prob. 6SEBCh. 15 - ADJUSTING, CLOSING, AND REVERSING ENTRIES Prepare...Ch. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - Prob. 10SPBCh. 15 - Prob. 1MYWCh. 15 - Dominique Fouque owns and operates Dominiques Doll...Ch. 15 - Prob. 1CP
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