Did you include event c in the spreadsheet

Assignment Help Accounting Basics
Reference no: EM13877516

Swish Watch Corporation manufactures, sells, and services expensive watches. The company has been in business for three years. At the end of the previous year, the accounting records reported total assets of $ 2,255,000 and total liabilities of $ 1,780,000. During the current year, the following summarized events occurred:

a. Issued additional shares of common stock for $ 109,000 cash.

b. Borrowed $ 186,000 cash from the bank and signed a 10- year note.

c. A stockholder sold $ 5,000 of his stock in Swish Watch Corporation to another investor.

d. Built an addition on the factory buildings for $ 200,000 and paid cash to the contractor.

e. Purchased equipment for the new addition for $ 44,000, paying $ 12,000 in cash and signing a six- month note for the balance.

f. Returned a $ 4,000 piece of equipment, from (e), because it proved to be defective; received a cash refund.


1. Complete the spreadsheet that follows, using plus (+) for increases and minus (-) for decreases for each account. The first transaction is used as an example.

2. Did you include event (c) in the spreadsheet? Why?

3. Based on beginning balances plus the completed spreadsheet, provide the following amounts (show computations):

a. Total assets at the end of the year.

b. Total liabilities at the end of the year.

c. Total stockholders' equity at the end of the year.

4. At the end of the current year, has the financing for Swish Watch Corporation's investment in assets primarily come from liabilities or stockholders' equity?

Reference no: EM13877516

Property in complete liquidation

In the current year, Orion Corporation (E & P of $2 million) distributes all of its property in complete liquidation. Allie, a shareholder, receives land having a market val

Percent annual coupon bonds of the abc co

If the market value of debt is $155,527, market value of preferred stock is $78,829, and market value of common equity is 312,100, what is the weight of preferred stock? ?En

What portion of computer software costs

The product will earn future revenues of $4,000,000 over its 5-year life, as follows: 2008 - $1,000,000; 2009 - $1,000,000; 2010 - $800,000; 2011 - $800,000; and 2012 - $400

What is the best conclusion

What do you think is George Bush's desired conclusion? Make sure to include the computations of income.  How can the discrepancies in parts (a) and (b), and the motivation di

Company total net operating income

It is estimated that $38,400 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department is discontinued, the c

Determine the amount of pension plan assets at fair value

The following information relates to Schmidt Sausage Co.'s defined benefit pension plan during the current reporting year: Required: Determine the amount of pension plan asset

Why are many manufacturers and retailers out sourcing

Why are many manufacturers and retailers out sourcing the physical logistics of delivering merchandise to shoppers? What advantages does such a strategy offer? What are the po

Prepare a statement of cash flows

Prepare a statement of cash flows for 2016 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. (Amounts to be deducted shoul


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd