Mastering Owner's Equity and Balance Sheet Analysis
School
West Valley College**We aren't endorsed by this school
Course
ACC 122
Subject
Accounting
Date
Dec 12, 2024
Pages
8
Uploaded by kwohn99
Problem 12-2BName: Enter the appropriate numbers/formulas in the shaded (gray) cells, or select from the drop-down lists.An asterisk (*) will appear in the column to the right of an incorrect answer.1.Meyer Mountain ShopStatement of Owner's EquityFor Year Ended December 31, 20--2.Meyer Mountain ShopBalance SheetDecember 31, 20--AssetsCurrent Assets:Total Current AssetsProperty and Equipment:LessLessLessLessTotal Property and EquipmentTotal AssetsLiabilitiesCurrent Liabilities:
Total Current LiabilitiesLong-Term Liabilities:Total LiabilitiesOwner's EquityTotal Liabilities and Owner's Equity3. & 4.Working Capital:Current Ratio:
Problem 12-2BName: SolutionEnter the appropriate numbers/formulas in the shaded (gray) cells, or select from the drop-down lists.An asterisk (*) will appear in the column to the right of an incorrect answer.1.Meyer Mountain ShopStatement of Owner's EquityFor Year Ended December 31, 20--M. E. Meyer, Capital, January 1, 20--$ 75,085 Add Net Income for the Year$ 24,351 Less Withdrawals for the Year35,250 Decrease in Capital(10,899)M. E. Meyer, Capital, December 31, 20--$ 64,186 2.Meyer Mountain ShopBalance SheetDecember 31, 20--AssetsCurrent Assets:Cash$18,525 Notes Receivable4,500 Accounts Receivable22,680 Merchandise Inventory53,542 Prepaid Property Taxes1,820 Prepaid Insurance2,450 Total Current Assets$ 103,517 Property and Equipment:Land$18,600 Building$ 42,000 LessAccumulated Depreciation, Building22,500 19,500 Computer Equipment$ 4,424 LessAccum. Depreciation, Computer Equip.2,250 2,174 Store Equipment$ 7,480 LessAccum. Depreciation, Store Equip.5,085 2,395 Delivery Equipment$ 5,740 LessAccum. Depreciation, Delivery Equip.3,225 2,515 Total Property and Equipment45,184 Total Assets$ 148,701 LiabilitiesCurrent Liabilities:Notes Payable$ 6,500
Accounts Payable19,455 Mortgage Payable (current portion)2,500 Wages Payable1,460 Total Current Liabilities$ 29,915 Long-Term Liabilities:Mortgage Payable54,600 Total Liabilities$ 84,515 Owner's EquityM. E. Meyer, Capital64,186 Total Liabilities and Owner's Equity$ 148,701 3. & 4.Working Capital:Current Assets$ 103,517 Current Liabilities29,915 $ 73,602 Current Ratio:Current Assets$ 103,517 3.46 Current Liabilities$ 29,915