The document consists of various accounting problems requiring the completion of worksheets, balance sheets, income statements, and cash flow statements for different companies and scenarios. It covers topics such as the effects of different business structures, stock transactions, and dividend effects on financial statements. Additionally, it includes comparisons of partnerships and corporations in terms of taxation and liability.

1. PROBLEM 8-18:
a. Fill in the worksheet with the appropriate values, provide
footnotes with calculations as appropriate;
Davis Corporation
Accounting Equation
Event
Assets
=
Liabilities
Stockholders’ Equity
Cash
=
Div. . Pay .
+
Pfd.
Stk.
+
Com. Stk.
+
PIC in Exc. PS
+
PIC in Exc.

2. CS
Trea-sury Stock
+
Ret. Earn.
Acct. Title R/E
2012
1/2

3. 1/15
2/14

4. 12/31
12/31

5. 12/31*
Bal.
=
+
+
+
+
+

6. 2013
1/31

7. 3/1
6/1

8. 12/31
12/31

9. 12/31**
Bal.
=
+
+

10. +
+
+
Footnotes: * :
Footnotes: **:
b. Fill in the worksheet with the appropriate values;

11. Stockholders’ Equity
Preferred Stock, $50 par value, 5% cumulative, 50,000 shares
authorized, 1,000 shares issued and outstanding
Common Stock, $10 par value, 100,000 shares authorized,
20,000 shares issued and outstanding
Paid-
Paid-
Total Paid-In Capital

12. Retained Earnings
Total Stockholders’ Equity
c. Fill in the worksheet with the appropriate values;
Davis Corporation
Balance Sheet
As of December 31, 2013
Assets

13. Cash
Total Assets
Liabilities
Dividends Payable
Total Liabilities

14. Stockholders’ Equity
Preferred Stock, $50 par value, 5% cumulative, 50,000 shares
authorized, 3,000 shares issued and outstanding
Common Stock, $10 par value, 100,000 shares authorized,
20,000 shares issued, 19,500 shares outstanding
Paid-In Capital in Exces
Paid-
Total Paid-In Capital

15. Retained Earnings2
Less: Treasury Stock
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity

16. PROBLEM 8-23:
This problem requires a brief memo, the completed schedules
below and discussions;
Advantages
Disadvantages
Partnership
Ease of formation
Less regulation
Lower effective tax rate
Limited life
Mutual agency
Unlimited liability
Corporation
Unlimited life
Limited liability
Capital easier to acquire & ownership easily transferred
More regulation
Higher effective tax rate

17. Partnership
Corporation
Income before taxes
Tax at entity level (30%)
Net income distributed to owners
Less: Individual income tax (30%/15%)
After-tax cash flow
After-tax cash flow available to each investor*
Effective tax rate*
* show calculations
PROBLEM 7-26:
a. Fill in the worksheet with the appropriate values, provide
footnotes with calculations as appropriate;
Artesia Co.
Effect of Events on the General Ledger
2012 and 2013

18. Assets
=
Liabilities
+
Stockholders’ Equity
Event
Cash
=
Sales Tax Pay.
Int.
Pay.
Notes Pay.
+
Com. Stock
Retained
Earnings
Acct. Title/RE
2012
1.

19. 2.
3.
4.

20. 5.
(1)
Bal.
2013

21. B. Bal.
1.
2.

22. 3a.
(2)
3b.
4.
5.

23. Bal.
b. Fill in the worksheet with the appropriate values, provide
footnotes with calculations where indicated (note there are
statements due for 2012 and 2013). Properly indent values as
per vertical statement formatting.;
Artesia Co.
Income Statement
For the Year Ended December 31, 2012

24. Service Revenue
Expenses
Operating Expenses
Total Operating Expenses
Operating Income

25. Interest Expense
Net Income
Artesia Co.
Statement of Changes of Stockholders’ Equity
For the Year Ended December 31, 2012
Common Stock

26. Beginning Retained Earnings
Add: Net Income
Ending Retained Earnings
Total Stockholders’ Equity

27. Artesia Co.
Balance Sheet
As of December 31, 2012
Assets
Cash
Total Assets
Liabilities

28. Sales Tax Payable
Interest Payable
Notes Payable
Total Liabilities
Stockholders’ Equity
Retained Earnings
Total Stockholders’ Equity

29. Total Liabilities and Stockholders’ Equity
Artesia Co.
Statement of Cash Flows
For the Year Ended December 31, 2012
Cash Flows From Operating Activities:

30. Inflow from Customers
Inflow from Sales Tax
Outflow for Expenses
Outflow for Sales Tax
Net Cash Flow from Operating Activities
Cash Flows From Investing Activities

31. Cash Flows From Financing Activities:
Inflow from Loan
Net Cash Flow from Financing Activities
Net Change in Cash
Plus: Beginning Cash Balance

32. Ending Cash Balance
Artesia Co.
Income Statement
For the Year Ended December 31, 2013
Service Revenue
Expenses
Operating Expenses

33. Total Operating Expenses
Operating Income
Interest Expense
Net Income

34. Artesia Co.
Statement of Changes of Stockholders’ Equity
For the Year Ended December 31, 2013
Common Stock
Beginning Retained Earnings
Add: Net Income
Ending Retained Earnings

35. Total Stockholders’ Equity
Artesia Co.
Balance Sheet
As of December 31, 2013
Assets
Cash
Total Assets

36. Liabilities
Sales Tax Payable
Total Liabilities
Stockholders’ Equity
Retained Earnings
Total Stockholders’ Equity

37. Total Liabilities and Stockholders’ Equity
Artesia Co.
Statement of Cash Flows
For the Year Ended December 31, 2013
Cash Flows From Operating Activities:

38. Inflow from Customers
Inflow from Sales Tax
Outflow for Expenses
Outflow for Sales Tax
Outflow for Interest
Net Cash Flow from Operating Activities

39. Cash Flows From Investing Activities
Outflow for Loan Payment
Net Cash Flow from Investing Activities
Cash Flows From Financing Activities
Net Change in Cash

40. Plus: Beginning Cash Balance
Ending Cash Balance
PROBLEM 7-27:a. Fill in the worksheet with the appropriate
values, provide footnotes with calculations where indicated;
Norman Co.
Effect of Events on the General Ledger
2012 and 2013
Assets
=
Liabilities
+
Stockholders’ Equity
Event
Cash
Accts.
Rec.
=
Notes

41. Pay.
Int.
Pay.
+
Com. Stock
Retained
Earnings
Acct. Title/RE
2012
1.
2.

42. 3.
4.
5.
(1)
Bal.

43. =
+
2013
B. Bal.
=
+

44. 1.
2.
3.
4.

45. 5.
(2)
Bal.
=
+
Footnote (1):

46. Footnote (2):
b. Provide the requested values and show components and
calculations as appropriate;
c. Provide the requested values and show components and
calculations as appropriate;
d. Provide the requested values and show components and
calculations as appropriate;
e. Provide the requested values and show components and
calculations as appropriate;
f. Provide the requested values and show components and
calculations as appropriate;
g. Provide the requested values and show components and
calculations as appropriate;
h. Provide the requested values and show components and
calculations as appropriate;
i. Provide the requested values and show components and
calculations as appropriate;- - -
PROBLEM 7-28:
a. Provide the requested values and show components and
calculations for;
(1) Cash paid for interest:
(2) Interest Expense:
(3) Warranty Expense:
b. Provide the requested values and show components and
calculations as appropriate, (you should show
values/calculations for Interest Payable, Sales Tax Payable,
Warranty Payable, and Notes Payable), and then fill in the
following table. Answer the question - What is done regarding
the contingent liability:
Caledonia Company
Current Liabilities
Interest Payable

47. Sales Tax Payable
Warranty Payable
Notes Payable
Total Current Liabilities
c. Fill in the worksheet with the appropriate impact indicator
(+, -, NA); in the Cash Flow column, also indicate OA, IA, FA;
Event
Assets
=
Liab.
+
Equity
Rev.
Exp.
=
Net Inc.

48. Cash Flow
1.
2.

49. 3.
4.

50. 5.
6.
7.

51. 8.
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314 ACC201
LOS
• connect

52. La 1.2
E ES
b. Preferred Stock.2012: $!iO.ooO
c. Common Shares OutstandlO!l.
2013: 19.soo
Required
a. How will CD<: Corporation's books be affected by the stock
split?
b. Determine the number of common shares outstanding and the
par value after the split.
c. Explain bow the marker value of the stock will be affected by
the stock split.
Exercise 8-16 C",poTtlte /UIIIoulfcemetrls
Super Drugs (one of the three largest drug makers) just reported
that its 2012 third-quarter prof-
its had increased substantially over its 2011 third-quarter
profits. In addition to this announce-
ment, the same day. Super Drugs also announced that the Food
and Drug Administration had
just denied approval of a new drug used to treat high blood
pressure that Super Drugs developed.
The FDA was concerned about potential side effects of the drug.
R'quired
Using the above information. answer the following questions.
a. What do you think will happen to the stock price of Super
Drugs on the day these two
announcements are made? Explain your answer.
b. How will the balance sheet be affected on that day by the
above announcemeats?

53. c. How will the income statement be affected on that day by the
above announcements?
d. How will the statement of cash flows be affected on that day
by the above announcements?
PROBLEMS
All applicable Problems are available with McGraw-HiII's
Connect Accounting.
Problem 1-17 Effect of bll$UreJ$ structsre on finQncUz[
statemetrls
Calloway Company was started on January 1,2012. when the
owners invested S40,OOOeash in
the business. During 2012, the company earned cash revenues of
S18,OOOand incurred eash ex-
penses of 512,500. The company also paid cash distributions of
S3,OOO.
Reqlired
Prepare the 2012 income statement, capital statement (statement
of changes in equity), balance
sheet, and statement of cash flows using eaeh of tbe following
assumptions. (Consider each as-
sumption separately)
a. Calloway is a sole proprietorship owned by ~acy Calloway.
b. Calloway is a partnership with two partners, Macy Calloway
and Artie Calloway. Mac)'
CaIJo"Qyinvested S25,OOOand Artie Callo .••.ay invested
SI5,OOOof the S40,OOOcash that was
used to start the business. A. Calloway was expected to assume
the vast majority of the
responsibility for operating the business. The partnership
agreement called for A.. Calloway

54. to receive 60 percent of the profits and M. Calloway to get the
remaining 40 percent. With
regard to the 53,000 distribution, A. Calloway withdrew SI,200
from the business and
M. Calloway withdrew 51,800.
c, Ca1JO"Qyis a corporation. It issued 5,000 shares of 55 par
common stock for $40,000 cash
to start the business.
Problem 1-18 Recording lUId reporting stock transactions tUJd
ClISh di"';dends
across moo IU:cormtUtg cydes
Davis Corporation was authorized to issue 100,000 shares of
$10 par common stock and 50,000
shares of SSOpar, 6 percent, cumulative preferred stock. Davis
Corporation completed the fol-
lowing transactions during its first twO years of operation.
21112
Jan. 2 Issued 5,000 shares of Sto par common stock for 528 per
share.
15 Issued 1,000 shares of S50 par preferred stock for S70 per
share.
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Survey of Accounting. Third Edition 31

55. Feb. 14
Dec. 31
Pl"oprietorsh"s, Par.ner.;hi05, "00 Corooratio 5 313
31
Issued 15,000 shares of SID par common stock for S30 pet
share.
During the year, earned SliO,Ooo of cash service revenue and
paid S 110,000 of cash
operating expenses.
Declared the cash dividend 00 outstanding shares of preferred
stock for 2012. The
dividend will be paid 011 January 31 to stockholders of record
on January 15,2013.
2013
Jan. 31
Mar. I
June I
Dec. 31
Paid the cash dividend declared on December 31, 2012.
Issued 2,000 shares of S50 par preferred stock for S58 per
share.
Purchased SOO shares of common stock as treasury stock at 543
per share.
During the year, earned S210,000 of cash service revenue and
paid S175,000 of cash
operating expenses.
Declared the dividend 00 the preferred stock and a $0.60 per
share dividend 00 the
common stock.
31

56. Requi~d
a. Organize the transaction data in accounts under an accounting
equation.
b. Prepare the stockholders' equity section of the balance sheet
at December 31, 2012.
c. Prepare the balance sheet at December 31, 2013.
Probl m 8-19 RecorcJiJfg IUUIreporting tretUlITY stock
trruulldwm
Midwest Corp. completed the following transactions in 2012,
the first year of operation.
1. Issued 20,000 shares of S10 par common stock at par.
2. Issued 2,000 shares of S30 Stated value preferred stock at
S32 per share.
3. Purchased 500 shares of common stock as treasury stock for
SI5 per share.
4. Declared a 5 percent dividend on preferred stock.
S. Sold 300 shares of treasury stock for SI8 per share.
6. Paid the cash dividend 00 preferred stock that was declared
in Event 4.
7, Earned cash service revenue of S7S,000 and incurred cash
operating expenses of S42,000.
8. Appropriated. S6,000 of retained. earnings.
Requi~d
a. Organize tile transaction in accounts under an accounting
equation.
b.Prepare the stockholders' equity section of the balance sheet
as of December 31, 2012.
Problem 8-20 Recording and reporting treasury stock
transactions
Boley Corporation reports the following information in its
January I, 2012, balance sheet:

57. Stockholders' equity
Common stock. $tO par value,
50.000 shares authorized, 30,000 shares Issued and outstamling
Pald-in capital In excess of par value
Retainad earnlnlls
Total stockholders' equity
5300,000
150,000
jOO,OOO
8550,000
During 2012. Boley was affected by the following accounting
events.
1. Purchased 1,000 shares of treasury stock at SI8 per share.
2. Reissued 600 shares of treasury stock at 520 per share.
3, Earned S64 000 of cash service revenues,
4. Paid S38,OOO of cash operating expenses.
Requi~d
Prepare the stockholders' equity section of the year-end balance
sheet.
LO5, 6, B
JC
CHE
b. Total Paid-In Capital: S264,Dl
L05

58. CHECKAG~RES
Total Paid·ln Capital: 5451.200
Total Stock·hofders'equity:
SSlO,OOO
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Survey of Accounting. Third Edition 31
Problem 8-23 Diffenm fomu of ~~ O'KtUrizIztitm
Shawn Bates was worki.ng to establish a business enterprise
••••ith four of his wealthy friends, Each
of the five individuals would reoei",: a W peta:Dt ownership
interest in the company. A primary
goal of establishing the enterprise ",-as to miniI::!.i.zethe
amount of income taxes paid. Assume
that thefive investors an: taaed at the rate of Isy. on cfuidend
income and 30% on all other in-
come and that the corporate taX me is 30 percent. Also assume
that the new company is ex-
pected to earn S40Q,OOOof cash incooe before taxes during its
ru-st year of operation. All
earnings are expected to be ;mmerliarely Cisuibu~ to the
owners.
LD1
Prop:ietorsh~s. Partnerships. and CoI'OOl'C"t'.o/lS 315
available to each investor if the business is estab-

59. 'rite iI t=o~.lai.ning the advantages and disad-
orsalli.wion. ExpWn why a limited liability company
pat'llllenbiip or a oorporation..
Probl 8-24 Effutt ef .itylNllSIIA=DDIU 011jiatuJt:Ud
~tJIUnrDJIl
The foUowing ~ ;-eree••peneo:lld b) !:bot J.nc.:
1. Issued aun:ulali-~ prefernrl lOr
2. Issued rommoo StOCk
3. Di.mibuted a AIX'-
4. Issued ooocu;ou1am~ P<'~I
5. Appropriated rtWned
6. Sold treasury stod: for
7. DistnDuted a ock di' .
8. Paid cash to purctwe treuury
9. DecIa.red a cash div end-
10. Paid the cash cfu'idend declared in E,= 9.
core than the cost of the treasury stock.
Requirwd
Show the effect of each evem on the ekmenu of the fmancial
statmICnU using a horizontal state-
ments modd fu the follo...ing ooe, Use T Of in=ase. - for
decrease, and , 'A lOC DOl: affected. In
the Cash Flow column, indicate whether the itecl is an operating
iJCti.,~ (OA), in-esting acti~i:ty
CIA),or rmancingactivity{FA). The first transaction is entered
as an ~
Event
No. Asse1S U8b. + Equity Rev.

60. NA NA + FA
ANALVZE, THINK, COMMUNICATE
Use the 1 's annual report in Appendix B 10 answer tbe
following questions, --Required
., What is the par value per share of Target's srock?
II. How many shares of Target's common stock were
outstanding as of January 31, 2010?
c. Target's annual report provides some details about the
company's executive officers. How
many are identified? What is their minimum, maximum, and
average age? How many are
females?
d. Target's balance sheet does not show a balance for treasury
stock. Does this mean the com-
pany has not repurchased any of its o.•••.n stock? Explain.
l
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---_ .._-----------------------------_. Survey of Accounting. Third
Edition
Exercise 1-23 Effecti~ interest amortization of Q bond discount
On January 1,2012, Sea V_ Condo Association issued bonds
with 8: face value of S2OO,OOO,a
stated rate of interest of 8 percent, and a l()..year tetm to

61. maturity. Interest is payable in cash on
December 3J of _ch year. The effective rate of interest was 10
percent at the time the bonds
~'CI'C issued. The bonds sold for SI75,442_ Sea VIeW used the
effective interest rate method to
amortize bond discount.
Requirad
a. Determine the amount of the discount on the da,y of Issue,
b. Determine the amount or intW:st expense ~ed on December
31. 20 12.
Co Determine the carrying value of the bond liability on
December 31 201.2.
Exercise '·24 Effective interest amortization of a bond
dUCOIUft
On JanuatY J. 2012,. Woodland Enterprises issued bonds with a
face value of 550,000, a stated
rate of interest of 8 percent, and a five-year term to maturity.
Interest is payable in cash on
December 3J of each year, The effective rate of interest was 10
percent at the time the bonds
were issued. The bonds sold. for S46,209. Woodland used the
effective interest rate method to
amortize bond discount.
Required
a. Prepare an amortization tableas shown below:
.~~ "..-
'Cash Interest Discount cB.nyi1lll·
fa,~ ExJll!ose AmartlzatlOll Value
January 1,2012 46.209
December 31.2012 4.000 4,621 621 46,830

62. Oecember31, 2013 ? ? ., 1
December31,2014 ? 1 ? 1
December 31,2015 ? 1 ? 1
December 31. 2016 ---1 _1 -.1 ?
Totals ~ 23,791 3)91
b. What item(s) in the tablcM)uld appear on the 201.3 balance
sheet'?
Co What item(s).in the table would appear on the 2013 income
statement?
d. whiltitem(s) in the table would appear on the 201l statement
of cash flaws?
Exercise 1~~ Effir:tiveinterest ~,sram'aight.;line amoftizatfon
On January 1. 20U. Smith and Associates issued bonds with
aface value of S1,OOO,OOO,astatcd rate
of interest of 9 percent, and a ~year term to maturity. Interest
ispa)'liblein cash on December 31
of each year. The etfectM rate of interest was 11 ~t at the time
the bonds were issued,
Required
Write a l1iiefmemoexpJaining whether the etfectiveintcrest rate
method or-the straight-line method
willprodnce the highest amount of interest expense recognized
on the 2012 income statement,
PROBLEMS
All applicable ProbJemsare available with McGraw·Hilrs
COnnectAccounfin~ .
Pt'Oblem 7-2& Accoulfting/Or sltort-tenn debt and sales tax-
t#YJ Qcc.ountMgcycks
ThefoUowingtransactions lWP!y to Artesia Co. for 2012, its
first year of operations.

63. 1. Received $4(),000 cash from the issue of a short-term note
with a 5 percent interest rate and
a one-year maturity. The Dote was issued on April I; 2012.
ACCO<lnt1ngfor liabilitieS 277
LO'I1
L011
t.O 11
LO'I~2. 3. 4
CHECK RGlJRf
Ne Income 2012: $46,500
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ACC201
LO 1. 2, 4
CHfCKAGURE
TOIaI Current liabilities!S44.1l5D
Z. Received $120,000 cash plus applicable sales tax from
performing- services The services are
subject to a sales tax rate of 6 percent.

64. 3. Paid S72,000 cash for other operating expenses during the
year.
4. Paid the sales tax due on SI00,OOOof the service. revenue
for the year. Sales tax on the
balance of the revenue is not due nntil2013.
~. Recognized the accrued interest at December 3t. 20.12.
The following transactions apply to Artesia Co. for Z013.
I.Paid the balance of the sales tax duefor201Z.
2. 1tecci~'ed S145,000 cash plus applicable sales tax from
performing Services. The- services are
. subject to a sales tax rate of 6 percent.
3; .Repaid the principal of the note and applicable interest on
Aprll 1. 2013_
4. Paid -s85,000 of other operating expenses during the year.
S. Paid tlle sales tax due on 5120,000 of theservicereveaue, The
sales tax on the balance of the
revenue is not due until 2014. -
Requited
a. Organize the transaction data in accounts under an accounting
equation.
b. Prepare an Income statement, a statement of changes in
stockholders' equity, a balance
sheet, and a statement of cash flow for2Q12 and 20 13.
Problem 7-TI Effect of accrUl!d interest 011jinancitiJ
stfl1l!DU!nU
Toonan Co. borrowed 515,000 from theJocaI bank on Aprll J,
2012, when the company ~1IS

65. started. The note had an 8 percent annual interest rate and a
one-year term to maturity. Norman
eo. recognized S42,000 of revenue on account in 2012 and
S56,OOOof revenue on account in
2013. Cash collections from accounts receivable were $38,000
in 2012 and S58,OOOin 2013.
'= Co. paid $26,000 of salaries expense in 2012 and S32,000 of
salaries expense in Z013.
Norman Co. paid the loan and interest at the maturity date.
Required
a. Organize the information in accounts under an accounting
equation.
b. What amount of net cash flow from operating activities
would be reponed on the 2012 cash
flow statement?
Co What amount of interest expense wolil.d be reported on the
2012 income statement?
d. "'bat amount of total liabilities would be reported on the
December 31. 2()1~balancesheet?
e. -What amount of retained earnings would be reponed on the
December 31, 201i.~lallce
sheet?
.t What amount of. cash flow from ~g ~ctivities would be
reported on the ip12 state-
ment of cash fiows? .
. g. WhaI amount of interest expense would be reported on the
2013 income statement?
h. What amount of cash flows frolll operating- activities would
be reported on the 20tl cash

66. flow statement?
lWbatamount of assets would be reported on the December
31,2013, balance sheefI-
Problem 7·28 CrD'fent li4bilities
The folJowfug selected transactions were taken from the boon
of Caledonia Company for 2012.
1. On Maroh 1,2012, borrowed S50,OOOcash from thelocal
bank. The note had a 6 percent
interest rate and was due on September 1.2012.
2. cash sales for the year amounted (05125,000 plus sales tax at
the rate of 1 percent.
3. Caledonia provides a 9O-day warranty on the merchandise
sold. The warranty expense ~
estimated to be 2 percent of sales.
4. Paid the sales tax to the state sales tax agency on
SI90,OOOof the sales.
5. Paid the note due on September 1 and 'the related interest.
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Survey of Accounting. ThIrd Edition--------------------------------
--------------------------------------------------
ACcountingforUabiitles 279
6_ On October 1, 2012, borrowed S40,OOOcash from the local
bank, The note had a 7 percent

67. interest Fate and a one-year term to matUrity.
7. Paid 83.600 in warran ty repairs.
8. A CUStomer has filed a lawsuit against. Caledonia for
5100,000 for breach of contract, The
company artorney docs not beiieve the suit has merit.
Require4
a. Anm-e.r the following questions:
(1) Wfuu amount of cash did Caledonia pay for interest during
the year'?
(1) What. amount of Imeeesteapease is reported: on Caledonia 5
income.statementfor the yeai1
(3) What is the amount of warranty expeesefor tbe year?
b. Prepare the current liabilities section of'the balance sheet at
December 3J, 2012.
Co Show the effect of these transactions on the financial
statements using a horizontal. stare-
meats model like the one.shown here Use a + to indicate
increase, a - for decrease, afut NA
for not affected. In the Cash Flow colamn, indicate whether the
Item is an operating activity
(OA), .investing activity (fA), or financing activit}' (FA). The
fusttransaction is recorded as
an example,
Uallilities + Equity Exp. Net IJIC. CasflRaw
NA +FA
Problem 7-29 Contingent liIlbiJiJies
Required

68. a. Give an example of a contingent liability that is probable and
reasonably estimable. How
would this type of liability be Shown in the accounting records?
.b. Give an example of a contingent liability that is reasonably
possible or probable but not
reasonably estimable. How J,'OUld this type of liability be
shown in the accounting, records?
e, Give an example of a contingent liability that is remote. How
is this type of liability shown
in the accouating records?
Prob~m7.30 Multistep ilfcome statement-and cl4ssified balance
sheet
Require~
Use the fqllowing information to prepare a multistep income
statement and a claBsif«:d balance
s~tfor Douglas Company for-2012. (Him: Some of th.eitems
willlU}lap~ on either statement,
and ending retained earnings must be calculated.) c
Other olleratilll expenses
land
Accumulated-ilepreciation
Accounts payable
Unearned revenue
Warran1ies payable (slum term1
Equip!llerJt .
Notes jlayable !long terml
Salva!18valueaf equipment
Dividends 'c c.
wiirraittyexpense _ c
~ginning retained earnings·
InterestreveJJue

69. Gain on sale of equipment
t nvelltllry
Notes re1:eivable {shan terml
S 9O.oDOCasfl
50.000 1nterest receivable (short te-rrill
38.000 Cash ftowfrom investinjl activities
60.000 Allowance for doubtful accounts
58,oiJo Jr.terestpayable (short1erm)
toOO . Sales revenue
77,000- UncoUectible accounts expense
129,000 Interest exjlense
7,000 Acllounts receivable'
12.000. salaries payable
5.000 c Supplies
28,800 Prepard rent
6.000 Common stock
10.000 Cost of goods sold
154,000 salaries expense
17.000
S 23,000
800
102.000
7.000
3,000
5OO,1m
14,Im
32.000

70. c 113,000
12;Ooil
3,000
14.000
5UXXl
119,lJOO
l~c
i.03
CHECKAGUReS
Total Cunent Assets: $317,800
Total Current Ualll1i1ies: $135,000
WEEK 4: Assignments
Template & Book notes to follow as attachment
Problems: 7-26, 7-27, 7-28
Problems: 8-18, 8-23
Survey of Accounting 3e
Chapter 7 Problems
Complete the following problems from Chapter 7 and submit to
your instructor. These problems will be graded for accuracy.
Problems: 7-26, 7-27, 7-28.
Chapters 8 Problems
Complete the following problems from Chapter 8 and submit to
your instructor. These problems will be graded for accuracy.
Problems: 8-18, 8-23.