Refer to Apple’s financial statements in Appendix A for the following questions.
1. What amount of total liabilities does Apple report for each of the fiscal years ended September 26, 2015, and September 27, 2014?
September 15 - $171,124
September 14 - $120,292
Liabilities are the obligations of the business either short-term or long-term. Short-term obligations are the result of the daily operating activity. Whereas, long-term obligations are due to the investing and financing activity.
In the given appendix for Apple, the liabilities or fiscal years ending September 2015, and September 2014 are $171,124 and $120,292 respectively.
At the beginning of April, Bernadette Grechus launched a custom computer solutions company called Softworks. The company had the following transactions during April.
a. Bernadette Grechus invested $65,000 cash, office equipment with a value of $5,750, and $30,000 of computer equipment in the company in exchange for common stock.
b. The company purchased land worth $22,000 for an office by paying $5,000 cash and signing a longterm note payable for $17,000.
c. The company purchased a portable building with $34,500 cash and moved it onto the land acquired in b.
d. The company paid $5,000 cash for the premium on a two-year insurance policy.
e. The company provided services to a client and immediately collected $4,600 cash.
f. The company purchased $4,500 of additional computer equipment by paying $800 cash and signing a long-term note payable for $3,700.
g. The company completed $4,250 of services for a client. This amount is to be received within 30 days.
h. The company purchased $950 of additional office equipment on credit.
i. The company completed client services for $10,200 on credit.
j. The company received a bill for rent of a computer testing device that was used on a recently completed job. The $580 rent cost must be paid within 30 days.
k. The company collected $5,100 cash in partial payment from the client described in transaction i.
l. The company paid $1,800 cash for wages to an assistant.
m. The company paid $950 cash to settle the payable created in transaction h.
n. The company paid $608 cash for minor maintenance of the company’s computer equipment.
o. The company paid $6,230 cash in dividends.
p. The company paid $1,800 cash for wages to an assistant.
q. The company paid $750 cash for advertisements on the web during April.
3. Prepare a trial balance as of the end of April.
Question: The expanded accounting equation consists of assets, liabilities, common stock, dividends, revenues, and expenses. It can be used to reveal insights into changes in a company’s financial position.
1. Form learning teams of six (or more) members. Each team member must select one of the six components, and each team must have at least one expert on each component: (a) assets, (b) liabilities, (c) common stock, (d) dividends, (e) revenues, and ( f ) expenses.
2. Form expert teams of individuals who selected the same component in part 1. Expert teams are to draft a report that each expert will present to his or her learning team addressing the following:
d. Describe a transaction, with amounts, that decreases its component.
3. Each expert should return to his/her learning team. In rotation, each member presents his/her expert team’s report to the learning team. Team discussion is encouraged.
Question: 1. Prepare general journal entries for the following transactions of Valdez Services.
a. Brina Valdez invested $20,000 cash in the company in exchange for common stock.
b. The company provided services to a client and immediately received $900 cash.
c. The company received $10,000 cash from a client in payment for services to be provided next year.
d. The company received $3,500 cash from a client in partial payment of accounts receivable.
e. The company borrowed $5,000 cash from the bank by signing a note payable.
2. Transactions a, c, d, and e did not yield revenue. Match each transaction (a, c, d, and e) with one of the following reasons for not recording revenue.
_______This transaction changed the form of an asset from a receivable to cash. Total assets were not increased (revenue was recognized when the services were originally provided).
_______This transaction brought in cash (increased assets), and it also increased a liability by the same amount (represented by the signing of a note to repay the amount).
_______This transaction brought in cash, but this is an owner investment.
This transaction brought in cash, and it created a liability to provide services to the client in the next year.
Question: Aracel Engineering completed the following transactions in the month of June.
a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock.
b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a longterm note payable for $42,700.
c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b.
d. The company paid $3,000 cash for the premium on an 18-month insurance policy.
e. The company completed and delivered a set of plans for a client and collected $6,200 cash.
f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
h. The company purchased $1,150 of additional office equipment on credit.
i. The company completed engineering services for $22,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.
k. The company collected $7,000 cash in partial payment from the client described in transaction g.
l. The company paid $1,200 cash for wages to a drafting assistant.
m. The company paid $1,150 cash to settle the account payable created in transaction h.
n. The company paid $925 cash for minor maintenance of its drafting equipment.
o. The company paid $9,480 cash in dividends.
p. The company paid $1,200 cash for wages to a drafting assistant.
q. The company paid $2,500 cash for advertisements on the web during June.
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes
Payable (250); Common Stock (307); Dividends (319); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.
Zucker Management Services opened for business and completed these transactions in November.
Nov. 1 Matt Zucker, the owner, invested $30,000 cash along with $15,000 of office equipment in the company in exchange for common stock.
2 The company prepaid $4,500 cash for six months’ rent for an office. (Hint: Debit Prepaid Rent for $4,500.)
4 The company made credit purchases of office equipment for $2,500 and of office supplies for $600. Payment is due within 10 days.
8 The company completed work for a client and immediately received $3,400 cash.
12 The company completed a $10,200 project for a client, who must pay within 30 days.
13 The company paid $3,100 cash to settle the payable created on November 4.
19 The company paid $1,800 cash for the premium on a 24-month insurance policy.
22 The company received $5,200 cash as partial payment for the work completed on November 12.
24 The company completed work for another client for $1,750 on credit.
28 The company paid $5,300 cash in dividends.
29 The company purchased $249 of additional office supplies on credit.
30 The company paid $831 cash for this month’s utility bill.
1. Prepare general journal entries to record these transactions (use account titles listed in part 2).
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