Chapters 1 & 2 Homework
Complete the following exercises 1. Classify the accounts below (e.g. Assets, Liabilities or Stockholders’ Equity)

a. Accounts Payable Liability b. Preferred Stock Stockholder Equity c. Office Supplies Assets d. Accounts Receivable Assets e. Machinery Assets f. Notes Receivable Assets g. Cash Assets h. Mortgage Payable Liability i. Inventory Assets

2. Determine the missing amounts.

j. Assets $500,000
Stockholders’ Equity $150,000
Liabilities $350,000

k. Stockholders’ Equity $311,000
Liabilities $423,000
Assets $734,000

l. Assets at January 1, 2013 $950,000
Liabilities at January 1, 2013 $345,000
During 2013 Stockholders’ Equity increased by $35,000
Liabilities decreased by $15,000 during 2013
Stockholders’ Equity at December 31, 2013 $640,000 3. Identify the Classified Balance Sheet category for each of the accounts listed in question #1 as one of the following: m. Current Assets Accounts Receivable, Cash, Inventory, Note Receivable, Office Supply n. Property, Plant & Equipment Machinery o. Current Liabilities Accounts Payable p. Long-term Liabilities Mortgage Payable q. None of the above Preferred Stock 4. Compute the Net Realizable Value of the $460,000 of Accounts Receivable if the company estimates its Allowance for Uncollectible Accounts as 1.5% of its Accounts Receivable.
$460,000 - $6900 = $453,100

5. The Clark Company sells only one product. It began the year with 100 units on hand with a cost of $10 each. During the year they made the following purchases:

Jan. 15 200 units $11 $2200
Mar. 1 300 units $12 $3600
May 21 250 units $13 $3250
July 3 100 units $14 $1400
Sept 25 200 units $15 $3000
Nov. 30 150 units $16 $2400