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  • Dec 6, 2011, 07:36 AM
    EPS_MRS
    Help with accounting questions?
    July 11,20aa A co. acquires 80% of voting stock of B. During the yr. A sold to B for $450,000 goods which cost $330,000. B owes 15% of the goods at yr end. B reported NI was $204,000, and A NI was $806,000. A decided to use the equity method to account for this investment. What was the noncontrolling interets share of consolidation NI?
  • Dec 11, 2011, 07:40 AM
    francinet



















    AC2760 Week 1 Assignment

    Background Story:

    Colfax Dry Cleaners is owned and operated by Maria Acosta. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates.

    The assets, liabilities and capital stock of the business on November 1, 2011 are as follows:

    Cash: $34,200
    Accounts Receivable: $40,000
    Supplies: $5,000
    Land: $50,000
    Accounts Payable: $16,400
    Capital Stock: $10,000


    Business transactions during November are summarized as follows:
    (a) Maria Acosta invested additional cash in the business with a deposit of $35,000 in exchange for capital stock.
    (b) Purchased land for use as a parking lot, paying cash of $30,000.
    (c) Paid rent for the month, $4,500.
    (d) Charged customers for dry cleaning revenue on account, $18,250.
    (e) Paid creditors for account, $9,000.
    (f) Purchased supplies on account, $2,800.
    (g) Received cash from cash customers for dry cleaning revenue, $31,750.
    (h) Received cash from customers on account, $27,800.
    (I) Received monthly invoice for dry cleaning expense for November (to be paid on December 10) $14,800.
    (j) Paid the following: wages expense, $8,200; truck expense, $1,875; utilities expense, $1,575; miscellaneous expense, $850.
    (k) Determined that the cost of supplies on hand was $3,550; therefore, the cost of supplies used during the month was $4,250.
    (l) Paid dividends, $10,000.


    To Do:

    1 Determine the amount of retained earnings as of November 1, 2011.
    2 State the assets, liabilities, and stockholders' equity as of November 1st.
    In tabular form below the equation, indicate the increases and decreases resulting from each transaction and the new balances after all the transactions have been entered.
    3 Determine the amount of retained earnings as of November 30, 2011.


    Use the prepared forms on the Week1 Worksheet (click on the tab below) to complete each of the exercises described here.
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    Nov 1st
    Assets = Liabilities + Stockholders' Equity

    Accounts Accounts Capital Retained
    Cash + Receivable + Supplies + Land = Payable + Stock + Earnings

    34,200 + 40,000 + 5,000 + 50,000 = 16,400 + 10,000 + Retained Earnings

    84,200 = 110,600 + Retained Earnings

    110,600 = Retained Earnings



    Assets = Liabilities + Stockholders' Equity

    Accounts Accounts Capital Retained
    Cash Receivable Supplies Land Payable Stock Earnings Dividends

    Nov 1st 34,200 40,000 5,000 50,000 = 16,400 10,000

    (a) 35,000 = 35,000

    (b) 30,000 =

    (c) (4,500) =

    (d) =

    (e) = (9,000)

    (f) 2,800 = 2,800

    (g) = 31,750

    (h) 27,800 =

    (I) = 14,800 (14,800)

    (j) (1,875) * 850 * = (1,575) * 8,200 *

    (k) (4,250) =

    (l) = (10,000)

    Nov 30th =


    Nov 30th
    Assets = Liabilities + Stockholders' Equity

    Accounts Accounts Capital Retained
    Cash + Receivable + Supplies + Land = Payable + Stock + Earnings

    + + + = + + Retained Earnings

    = + Retained Earnings

    = Retained Earnings













    My problem is that I can't get the j amounts to go anywhere wages expense $8200, truck expense,$1875, utilities expense $1575, miscellaneous expense, $850. Can you help me apply these amounts to the financial statement



  • Dec 11, 2011, 10:06 AM
    pready
    Take your revenues minus expenses = Net Income minus Dividends plus Beginning Retained Earnings = Ending Retained Earnings.

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