Baltimore Company's Complete Assets And Liabilities Are Acco ✓ Solved
Baltimore Company's complete assets and liabilities are Accounts
Baltimore Company's complete assets and liabilities are: Accounts Receivable $800, Equipment $10,000, Accounts Payable $4,650, Prepaid Rent $2,000, Supplies $400, Bank Loan $3,950, and Tools $300. Calculate Baltimore's total liabilities.
Baltimore Company's complete assets and liabilities are: Accounts Receivable $1,950, Equipment $8,200, Accounts Payable $5,500, Prepaid Rent $1,500, Supplies $725, Bank Loan $4,450, and Tools $535. Calculate Baltimore's total equity.
Baltimore Company experienced a total increase in stockholders' equity of $24,000 during the current year. Stockholders' equity was increased by additional issuances of $43,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $88,000. Calculate Baltimore's revenue for the year.
Baltimore Company experienced an increase in total assets of $20,500 during the current year. During the same time period, total liabilities increased by $3,600. Shareholders made no investments during the year and no dividends were paid. Calculate Baltimore's net income.
Annapolis Corporation's trial balance included debits to expense accounts of $105,000, credits to revenue accounts of $225,000, and debits to the Dividends account of $50,000. Calculate the company's net income or loss.
Baltimore Company reports total assets and total liabilities of $276,000 and $110,000, respectively, at the conclusion of its first year of business. The company earned $67,500 during the first year and distributed $28,000 to shareholders as dividends. Calculate how much shareholders initially invested in the business.
During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. Record the adjusting entry to reflect this on July 31.
On January 7, Bravo purchased supplies on account for $1,000 and recorded this purchase to the Supplies account. At the end of January, Bravo had $600 of these supplies still on hand. Record the proper adjusting journal entry at January 31.
On January 1, 20X1, Bravo Company borrowed $26,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year on December 31, 20X2. Prepare the adjusting entry needed for December 31, 20X1.
On Tuesday, March 31, 20X1, the Bravo Company had accrued wages of $1,000. On Friday, April 3, Bravo paid employee wages of $2,500 for the week. Prepare the general journal entry needed for March 31, 20X1.
During 2018, Towson Company had credit sales of $40,000 and cash sales of $14,000. In 2018, Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $47,000, of which $42,900 was paid in 2018. Calculate Towson's 2018 accrual basis net income or loss.
The following is the Frederick Company's adjusted Trial Balance. Use this information to prepare the classified Balance Sheet for the fiscal year. Ensure to close out temporary accounts to arrive at the adjusted retained earnings balance.
A partial list shows that Charles Corporation's adjusted trial balance included various items. Calculate Charle's current ratio, rounding your answer to two decimal places.
Paper For Above Instructions
The accounting process involves the critical tasks of measuring and communicating financial information, which is often summarized in terms of assets, liabilities, and equity. This paper will explore various cases related to the Baltimore Company, Annapolis Corporation, Bravo Magazine, Towson Company, Frederick Company, and Charles Corporation, assessing their financial situations based on the information provided.
Baltimore Company's Total Liabilities
To find Baltimore Company's total liabilities, we will sum up its accounts payable, bank loans, and any other liabilities mentioned. The liabilities consist of:
- Accounts Payable: $4,650
- Bank Loan: $3,950
Therefore, the total liabilities for Baltimore Company is:
Total Liabilities: $4,650 + $3,950 = $8,600.
Baltimore Company's Total Equity
For computing Baltimore Company's total equity, we need to consider its assets and liabilities. The assets include:
- Accounts Receivable: $1,950
- Equipment: $8,200
- Prepaid Rent: $1,500
- Supplies: $725
- Bank Loan: $4,450
- Tools: $535
The total assets amount to:
Total Assets: $1,950 + $8,200 + $1,500 + $725 + $4,450 + $535 = $18,360.
Now, we subtract the total liabilities from the total assets to find equity:
Total Equity: $18,360 - $5,500 = $12,860.
Baltimore Company's Revenue
Baltimore experienced an increase in stockholders' equity of $24,000 due to capital stock issuances and retained earnings. Given that:
- Increase in Stockholders' Equity: $24,000
- Capital Issued: $43,000
- Expenses: $88,000
Using the formula:
Net Income = Increase in Equity - Capital Issued + Expenses
Thus, Revenue = $24,000 + $88,000 - $43,000 = $69,000.
Baltimore Company's Net Income
In another scenario, Baltimore's total assets increased by $20,500 while its liabilities increased by $3,600. The increase in equity is derived from:
Total Assets - Total Liabilities = Net Income
Hence, Net Income is:
Net Income: $20,500 - $3,600 = $16,900.
Annapolis Corporation's Net Income
For Annapolis Corporation, the calculated net income can be derived from the revenues against expenses. Given:
- Revenues: $225,000
- Expenses: $105,000 + $50,000 = $155,000
The net income is:
Net Income: $225,000 - $155,000 = $70,000.
Shareholder Investment Calculation for Baltimore Company
For Baltimore Company in the first year, given total assets of $276,000 and liabilities of $110,000:
Equity = Assets - Liabilities = $276,000 - $110,000 = $166,000.
Shareholder investment can further be determined by:
Shareholders' Investment = Equity - Retained Earnings + Dividends = $166,000 - $67,500 + $28,000 = $126,500.
Bravo Magazine's Unearned Revenue Adjustment
In the case of Bravo Magazine, we recorded Unearned Revenue upon receipt of cash for future services:
The adjusting entry on July 31 would show:
- Debit Unearned Revenue: $2,000
- Credit Revenue: $2,000
Bravo's Supply Adjustment Entry
At the end of January, with $600 of supplies still available from an initial purchase of $1,000, the adjusting journal entry would be:
- Debit Supplies Expense: $400
- Credit Supplies: $400
Bravo's Loan Adjusting Entry
The adjusting journal entry for interest would recognize accrued interest for the year:
- Debit Interest Expense: $2,600
- Credit Interest Payable: $2,600
Towson Company's Accrual Income Calculation
In its financial performance, we find Towson's accrual basis net income by calculating total revenues and expenses:
Total Revenue = $40,000 (credit sales) + $14,000 (cash sales) = $54,000
Total Expenses = $47,000.
Net Income: $54,000 - $47,000 = $7,000.
Charles Corporation's Current Ratio Calculation
The current ratio can be calculated as follows:
Current Assets: Cash + Accounts Receivable + Inventory + Prepaid Expenses
Current Liabilities = Accounts Payable + Interest Payable
Current Ratio = Total Current Assets / Total Current Liabilities = ($46,000 + $54,000 + $32,000 + $5,000) / ($47,000 + $5,000) = 1.61.
References
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