Financial Accounting 2nd Assignment

方钧同 2021011783 [email protected]

Multiple-choice questions from p81

2.D

3.A

4.A

5.B

6.C

7.A

8.D

9.B

10.D

M2-5
(1) SE

(2) NCA

(3) CL

(4) CL

(5) NCA

(6) NCA

(7) NCL

(8) CL

(9) CA

(10) CA

(11) CA

(12) SE

(13) CL
M2-10
Cash

Debit Credit

Beg. bal. 900 10,000 b

a 30,000 5,000 d

c 500

16,400

Notes Receivable

Debit Credit

Beg. bal. 1,000

b 10,000

11,000

Equipment

Debit Credit

Beg. bal. 15,100

d 15,000

30,100

Notes Payable

Debit Credit

3,000 Beg. bal.

30,000 a

10,000 d

43,000

Dividends Payable

Debit Credit

0 Beg. bal.

2,000 e

2,000
Common Stock

Debit Credit

1,000 Beg. bal.

10 c

1,010

Additional Paid-in Capital

Debit Credit

3,000 Beg. bal.

490 c

3,490

Retained Earnings

Debit Credit

e 2,000 10,000 Beg. bal.

8,000

M2-11

JonesSpa Corporation -- Trial Balance January 31

Debit Credit

Cash 16,400

Notes Receivable 11,000

Equipment 30,100

Notes Payable 43,000

Dividends Payable 2,000

Common Stock 1,010

Additional Paid-in Capital 3,490

Retained Earnings 8,000

Total 57,500 57,500

Journal Entries Debit Credit

(a) Cash(+A) 202

Common Stock(+SE) 8

Additional Paid-in Capital(+SE) 194

(b) Not a transaction. The company hasn't receive the equipment yet.

(c) Cash(+A) 1,419

Notes Receivable(-A) 1,419

(d) Cash(+A) 4,291

Long-term Notes Payable(+L) 4,291

(f) Equipment(+A) 6,540

Cash(-A) 6,540

(g) Treasury Stock(+SE) 4,846

Cash(-A) 4,846

(h) Notes Payable(-L) 4,377

Cash(-A) 4,377

Short Answer

These are the top 5 firms with the highest ratios. All of them has a feature that the current assets
account for a large proportion of th total assets. Another point is that their stockholders' equities
are exrtremely, which is at least 10 times more than their liabilities. As 4 out of them are
biopharmaceutical companies, and 2021 is when COVID -19 is at is peak in China, so a possile
explanation could be that those companies raised more money than usual times due to people's
conscious worries about virus. The rest one is a emerging technology companies which mainly
sells dornes and robots. These are also popular industries then and can be expained in the same
way.

These are the bottom 5 firms with the lowest ratios. According to online infromation, those firms
were all faced with operational inefficiencies, some of which even delisted. 600139 Most of them
have a negative stockholders' equity, which means they have serious trouble in running and was
burdened with high liabilities. They may encountered a problem of funding chain rupture.