Problem income statement and balance sheet of Lauren Company (Answers attached in Xls format)

1. The following information was made available from the income statement and balance sheet of Lauren Company. Item 12/31/10 12/31/09 Accounts Receivable $53,400 58,600 Accounts Payable 35,600 32,700 Merchandise Inventory 85,000 79,000 Sales (2010) 243,000 Interest Revenue (2010) 5,600 Dividend Revenue (2010) 1,200 Tax Expense (2010) 12,300 Salaries Expense (2010) 28,000 COGS (2010) 65,000 Interest Expense (2010) 3,600 Operating Expenses 28,500 Complete the cash flow from operating activities section for Lauren Company using the direct method for the year ended December 31, 2010. 2. Given the following balance sheet, complete a horizontal analysis. Compute the percentage to the nearest tenth of a percent. Jill’s Bikes Comparative Balance Sheet For Years Ended December 31, 2011 and 2010 (in thousands) 2011 2010 Difference Percentage Assets Current Assets Cash and Equivalents $72 $94 Accounts Receivable, net 122 104 Inventory 288 232 Total Current Assets 482 430 Property, Plant and Equipment 638 358 Total Assets $1,120 $788 Liabilities Current Liabilities Accounts Payable $242 $148 Accrued Liabilities 48 66 Total Current Liabilities 290 214 Long-Term Liabilities 346 208 Total Liabilities 636 422 Stockholders’ Equity Common Stock 70 60 Retained Earnings 414 306 Total Stockholders’ Equity 484 366 Total Liabilities and Stockholders’ Equity $1,120 $788 1. Record the following transactions using the accounting equation. Example: Assets = Liabilities + Equity XXXX(cash) XXXX(accounts payable) A. Amanda invests $17,000 cash into her merchandising business. B. She buys $6,500 of office equipment and $3,000 of office supplies with cash from Office Depot. C. Additional purchases were supplies for $35,000 on account from various suppliers. 2. Journalize the following transactions and omit the explanations. A. ABC Corporation purchased $15,000 of office furniture by putting $7,000 down in cash and the rest on account on April 8. B. The corporation paid $60,000 for a two-year lease on April 19. C. The corporation had sales of $45,000, of which $35,000 were on account on April 20. D. The corporation borrowed $25,000 by signing a note payable on April 22. E. The corporation paid $1,250 on one of its accounts payable on April 26. 3. Prepare a trial balance from the following information for Learn a New Language, Inc. for December 31, 2012. Accounts payable $5,012 Common stock $9,692 Cash $3,928 Notes payable $1,439 Wages expense $777 Marketing expense $493 Equipment $8,345 Accounts receivable $1,142 Inventory $8,074 Sales $6,616 4. Compute the missing information from this post-closing trial balance. Cash $34,689 Accounts Receivable 9,467 Prepaid Rent 5,000 Prepaid Insurance (A) Supplies 944 Accounts Payable $5,389 Wages Payable (B) Common Stock 37,049 Retained Earnings 8,234 _______ _______ Total $52,356 $52,356 5. Journalize the following transactions using the perpetual inventory method. Aug. 6 Purchased $830 of inventory on account from Johnston with terms of 2/10, n/30. Aug. 8 Purchased $2,611 of inventory for cash from Pillner Company. Aug.15 Paid for August 6 purchase from Johnston. Aug. 17 Purchased $1,743 of merchandise on account from Luis Company with Terms of 3/15, n/45. 6. Given the following information, prepare a balance sheet for Isaiah’s Tool Shed for the year ending December 31, 2012. Cash $65,750 Retained Earnings $179,319 Common Stock $35,000 Equipment $27,500 Accounts Receivable $11,478 Accounts Payable $29,450 Land $30,000 Inventory $78,311 Prepaid Supplies $7,357 Income Taxes Payable $4,209 Office Computers $11,345 Other PPE $31,446 Accum. Depr. (all) $23,459 Prepaid Insurance $8,250