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    Assestment Test 2

    Uploaded by

    Nicolas Ernesto
    The document shows journal entries for Jennifer's Company for the years 2019, 2020 and 2021 recording annual mortgage installment payments of $50,000 each year to reduce the mortgage notes payable balance. It also shows journal entries for Bell Corporation recording investments in shares and dividends received. Finally, it presents a general journal for the year 2020.

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    Assestment Test 2

    Uploaded by

    Nicolas Ernesto
    30 views11 pages
    The document shows journal entries for Jennifer's Company for the years 2019, 2020 and 2021 recording annual mortgage installment payments of $50,000 each year to reduce the mortgage notes payable balance. It also shows journal entries for Bell Corporation recording investments in shares and dividends received. Finally, it presents a general journal for the year 2020.

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    © © All Rights Reserved

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    The document shows journal entries for Jennifer's Company for the years 2019, 2020 and 2021 recording annual mortgage installment payments of $50,000 each year to reduce the mortgage notes payable balance. It also shows journal entries for Bell Corporation recording investments in shares and dividends received. Finally, it presents a general journal for the year 2020.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    30 views11 pages

    Assestment Test 2

    Uploaded by

    Nicolas Ernesto
    The document shows journal entries for Jennifer's Company for the years 2019, 2020 and 2021 recording annual mortgage installment payments of $50,000 each year to reduce the mortgage notes payable balance. It also shows journal entries for Bell Corporation recording investments in shares and dividends received. Finally, it presents a general journal for the year 2020.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11

    Question 1

    Jennifer's Company for thr year of 2019


    Date Account Titles Ref Dr Cr
    Jan-01 Cash 300000
    Mortgage Notes Payable 300000

    Jan-01 Annual Installment 50000


    Cash 50000
    (Paid Annual Installment: $50,000)

    Jennifer's Company for the year of 2020


    Date Account Titles Ref Dr Cr
    Jan-01 Annual Installment 50000
    Cash 50000
    (First Annual Installment: $50,000)

    Jennifer's Company for the year of 2021


    Date Account Titles Ref Dr Cr
    Jan-01 Annual Installment 50000
    Cash 50000
    (Second Annual Installment: $50,000)
    Bell Corporation
    General Journal
    Period 2020
    Date Account CoA Ref Dr
    1-Jan Investment $ 360,000
    Cash $ 360,000

    10-Jan Share Investment $ 660,000


    Cash $ 660,000

    Cash $ 45,000
    Dividend Income $ 45,000

    Cash $ 90,000
    Dividend Income $ 90,000
    Issue bonds 2000000 7% 10 years Date Description Ref
    at 2147202 1 Cash
    Market Rate 6% Bonds Payble

    2 Interest Expense
    Bonds Payble
    Interest Payble

    3 Interest Payble
    Cash

    4 Interest Expense
    Bonds Payble
    Interest Payble

    5 Interest Expense
    Bonds Payble
    Interest Payble
    Dr Cr Date Cash paid Interest expense
    2147202
    2147202 Dec 2020 140000 128832.12
    Dec 2021 140000 128162.0472
    128832.12
    11167.88
    140000
    b Book Value =
    140000 Premium =
    140000 Total =

    128162.047
    11837.9528
    140000

    14720.2 C Straight-line Amortization


    125279.8 14720.2
    140000
    Amortization/Discount Carrying Amount
    2147202
    11167.88 2136034.12
    11837.9528 2124196.1672

    2000000
    147202
    2147202
    Zaro Company
    Financial Analysis
    December 31, 2020
    Ratios Unit 2020
    Liquidity
    Current Ratio Times 6.00
    Acid-test ratio Times 3.27

    Asset Management Begining


    Account Receivable turnover Times/Years 4.9 Add : Net Income
    Average Collection Period Days 73.9 Less : Dividend
    Inventory turnover Times/Years 2.9 Ending
    Days in inventory Days 127.1
    Asset turnover Times/Years 0.8

    Long-term debt-paying
    Times interest earned Times/Years 5.25
    Debt to asset ratio % 48.62%

    Profitability
    Profit Margin % 5.00%
    Return on asset % 7.59%
    Return on Equity % 23.53%
    Asset turnover Ratio 1.518027
    Earning per share Currency $ 0.308
    Price earning ratio Ratio 6.50
    Pay out ratio Ratio 1.45
    54000
    Add : Net Income 20000
    Less : Dividend 29000
    45000
    Coco Company
    Statement of Cashflows (Partial)
    December 31
    Cash flows from operating activities Free Cash flows
    Cash Receipt
    Customer $ 297,500
    Gain $ 5,000
    $ 302,500
    Cash Disbursement
    Payment for Inventory $ 24,250
    Payment Operating $ 19,670
    Payment Income Tax $ 37,720
    Payment Interest $ 2,940
    $ (84,580)
    Cash flows from operating activities $ 217,920
    = $ (154,000)
    Genius Company
    Statement of Cash Flows
    December 31 , 2020
    Cash Flows from Operating Activities
    Net Income $ 38,000
    Add : Depreciation $ 12,000
    Changes Account Receivable $ (20,000)
    Changes Inventory $ (14,000)
    Changes Account Payble $ (5,000)
    Changes Interest Payble $ (1,000)
    Changes income tax payble $ 10,000
    Changes Prepaid $ (2,000)
    Loss on Sale Equipment 6000
    $ 24,000
    Cash Flows from Investing
    Purchase Equipment $ (10,000)
    Sold Equipment $ 12,000

    $ 2,000
    Cash Flows from Financing
    Issued Share $ 15,000
    Dividend Paid $ (14,000)
    Cash paid retire notes $ (34,000)
    Bonds Payble $ 30,000
    $ (3,000)
    Net Increase Cash $ 23,000
    Begining Cash $ 12,000
    Ending Cash $ 35,000
    Cost Equipment $ 30,000
    Acc Depreciation $ (12,000)
    BV $ 18,000
    MV $ 12,000
    Loss $ 6,000

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