Question

Question 14 The following account balance information is available for XYZ Co., representing all accounts shown...

Question 14

  1. The following account balance information is available for XYZ Co., representing all accounts shown on its statement of financial position as of December 31, 20X7:

    Cash…………………………………………………………………$3,500,000

    Accounts receivable…………………………………………………$2,500,000

    Marketable securities……………………………………………….....$800,000

    Prepaid insurance……………………………………………………...$200,000

    Equipment (net)..…………………………………………………….$7,000,000

    Current liabilities (total)..……………………………………………$2,100,000             

    Long-term liabilities (total)………………………………………….$7,000,000

    Common stock…………………………………………………..…...$1,000,000

    Retained earnings…………………………………………………… ?

    What is XYZ Co.’s retained earnings balance on December 31, 20X7?

    a.

    $3,900,000.

    b.

    $6,000,000.

    c.

    $4,900,000.

    d.

    $2,700,000.

Homework Answers

Answer #1
Cash 3500000
Accounts receivable 2500000
Marketable securities 800000
Prepaid insurance 200000
Equipment (net) 7000000
Total Assets 14000000
Current liabilities 2100000
Long-term liabilities 7000000
Total liabilities 9100000
Total Assets 14000000
Less: Total liabilities 9100000
Stockholders' Equity 4900000
Stockholders' Equity 4900000
Less: Common stock 1000000
Retained earnings 3900000
Option A $3,900,000 is correct
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                              &nbs
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                                $300,000 Accounts receivable                                                 1,125,000 Inventories                                                               1,837,500 Prepaid expenses                                                          24,000 Total current assets                                                $3,286,500 Fixed assets                                                              2,700,000 Less: accumulated depreciation                               1,087,500 Net fixed assets                                                      $1,612,500 Total assets                                                             $4,899,000 Liabilities: Accounts payable                                                      $240,000 Notes payable                                                              825,000 Accrued taxes                                                                42,000 Total current liabilities                                           $1,107,000 Long-term debt                                                            975,000 Owner’s equity                                                         2,817,000 Total liabilities and owner’s equity                        $4,899,000 Co. XYZ Income Statement Net sales (all credit)                                                $6,375,000 Less: Cost of goods sold                                           4,312,500 Selling and administrative expense                           1,387,500 Depreciation expense                                                  135,000 Interest expense                                                          127,000 Earnings before taxes                                               $ 412,500 Income taxes                                                                225,000 Net income                                                                $ 188,000 Common stock...
The accounts of the Capitan Company are shown below: Capitan Company List of Accounts as on...
The accounts of the Capitan Company are shown below: Capitan Company List of Accounts as on December 31 Accounts payable $20,000 Accounts receivable 18,000 Accumulated depreciation 11,000 Equity shares 75,000 Cash 85,000 Building and equipment 81,000 Inventory 15,000 Long-Term investment 30,000 Land 27,000 Marketable securities 3,000 Mortgage payable 89,000 Patents 4,000 Prepaid rent 6,000 Retained earnings ? Supplies 6,000 Taxes payable 11,000 Unearned revenue 19,000 Required: Prepare a balance sheet at December 31 for the Capitan Company. Assume that no...
On January 2, 20X7, Victory Co. acquired 60% of the shares of Sauce Ltd. by issuing...
On January 2, 20X7, Victory Co. acquired 60% of the shares of Sauce Ltd. by issuing shares valued at $1,200,000. On this date, Sauce’s building and machinery had estimated remaining useful lives of 10 years and 5 years respectively. Both Victory and Sauce use straight-line depreciation. The separate-entity statements of financial position for Victory and Sauce just prior to the acquisition are presented below. Statements of Financial Position As of January 1, 20X7 Victory Co. Sauce Ltd. (Carrying Value) (Carrying...
Financial statements for AAR Company appear below: AAR Company Balance Sheet December 31 Current assets:    ...
Financial statements for AAR Company appear below: AAR Company Balance Sheet December 31 Current assets:     Cash and marketable securities $21,000     Accounts receivable, net 160,000     Inventory 300,000     Prepaid expenses          9,000       Total current assets 490,000 Noncurrent assets:     Plant & equipment, net      810,000 Total assets $1,300,000 Current liabilities:     Accounts payable $75,000     Accrued liabilities 25,000     Notes payable, short term      100,000        Total current liabilities 200,000 Noncurrent liabilities:     Bonds payable      300,000...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 45,000 Accounts receivable 39,000 Inventories 80,000 Prepaid rent for the next 8 months 21,000 Marketable securities (short term) 15,000 Machinery 170,000 Accumulated depreciation—machinery $ 16,000 Patent (net of amortization) 84,000 Accounts payable 10,500 Wages payable 6,500 Taxes payable 37,000 Bonds payable (due in 10 years) 190,000 Common stock 150,000 Retained earnings 44,000 Totals $ 454,000 $ 454,000 Required: Prepare a...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 52,000 Accounts receivable 46,000 Inventories 87,000 Prepaid rent for the next 8 months 28,000 Marketable securities (short term) 22,000 Machinery 205,000 Accumulated depreciation—machinery $ 23,000 Patent (net of amortization) 91,000 Accounts payable 14,000 Wages payable 10,000 Taxes payable 44,000 Bonds payable (due in 10 years) 260,000 Common stock 150,000 Retained earnings 30,000 Totals $ 531,000 $ 531,000 Required: Prepare a...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash 47,000 Accounts receivable 41,000 Inventories 82,000 Prepaid rent for the next 8 months 23,000 Marketable securities (short term) 17,000 Machinery 180,000 Accumulated depreciation—machinery 18,000 Patent (net of amortization) 86,000 Accounts payable 11,500 Wages payable 7,500 Taxes payable 39,000 Bonds payable (due in 10 years) 210,000 Common stock 100,000 Retained earnings 90,000 Totals 476,000 476,000 Required: Prepare a classified balance sheet for...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 51,000 Accounts receivable 45,000 Inventories 86,000 Prepaid rent for the next 8 months 27,000 Marketable securities (short term) 21,000 Machinery 200,000 Accumulated depreciation—machinery $ 22,000 Patent (net of amortization) 90,000 Accounts payable 13,500 Wages payable 9,500 Taxes payable 43,000 Bonds payable (due in 10 years) 250,000 Common stock 140,000 Retained earnings 42,000 Totals $ 520,000 $ 520,000 Required: Prepare a...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title...
The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation. Account Title Debits Credits Cash $ 60,000 Accounts receivable 54,000 Inventories 95,000 Prepaid rent for the next 8 months 36,000 Marketable securities (short term) 30,000 Machinery 245,000 Accumulated depreciation—machinery $ 31,000 Patent (net of amortization) 99,000 Accounts payable 18,000 Wages payable 14,000 Taxes payable 52,000 Bonds payable (due in 10 years) 270,000 Common stock 180,000 Retained earnings 54,000 Totals $ 619,000 $ 619,000 Required: Prepare a...
Below are the balance sheet accounts and balances for The Cougar Hotel for the years 20X7...
Below are the balance sheet accounts and balances for The Cougar Hotel for the years 20X7 and 20X8, please complete the following: 1.    Organize the information into the correct Balance Sheet Format. Proper format includes: a.    Headings b.    Dates c.     Subtotals/Totals d.    Vertical Analysis e.    Horizontal Analysis 20X7                  20X8 Accounts Payable                               100,000             500,000 Accounts Receivable                         500,000             100,000 Accumulated Depreciation          (7,000,000)     (12,000,000) Building                                          20,000,000       25,000,000 Cash                                                      600,000             400,000 Common Stock                              20,000,000       25,000,000 Current Portion of Mortgage        1,250,000          1,250,000 Equipment                                     10,000,000       12,000,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT