1 / 26

Tutorial 2

Tutorial 2. Question P3-6. T-accounts for May 31, 2011. Temporary T-accounts. Transactions. A) Provided delivery service to customers, receiving $4,567 in accounts receivable and $17,600 in cash. Transactions. B) Purchased new equipment costing $1,345; signed a long-term note. Transactions.

kawena
Download Presentation

Tutorial 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tutorial 2 Question P3-6

  2. T-accounts for May 31, 2011

  3. Temporary T-accounts

  4. Transactions • A) Provided delivery service to customers, receiving $4,567 in accounts receivable and $17,600 in cash

  5. Transactions • B) Purchased new equipment costing $1,345; signed a long-term note

  6. Transactions • C) Paid $4,598 cash to rent equipment and aircraft, with $3,067 for rental this year and the rest for rent next year. ?

  7. Transactions • D) Spent $1,348 in cash to maintain and repair facilities and equipment during the year.

  8. Transactions • E) Collected $4,824 from customers on account

  9. Transactions • F) Repaid $18 on a long term note

  10. Transactions • G) Issued additional stock for $16

  11. Transactions • H) Paid employees $10,031 during the year

  12. Transactions • I) Purchased in cash and used $5,348 in fuel for the aircraft and equipment during the year.

  13. Transactions • J) Paid $784 on accounts payable

  14. Transactions • K) Ordered $72 in spare parts and supplies • Only ordered, no goods received yet • Not a transaction

  15. 2012 Effects

  16. Current Assets Noncurrent Assets

  17. Noncurrent Liabilities Stockholder’s Equity Current Liabilities

  18. Temporary T-accounts

  19. Income Statement

  20. Statement of SE

  21. Balance Sheet

  22. Statement of Cash Flows

  23. Total Asset Turnover Ratio • Measures sales generated per dollar of assets. Higher = more efficient at managing assets. Total Asset Turnover Ratio Sales (or Operating) Revenues Average Total Assets = (Beginning total assets + ending total assets) / 2

  24. Total Asset Turnover Ratio 1.44 22,167 15,446 = (13,306 + 17,586) / 2

  25. Total Asset Turnover Ratio • 1.44 • Very hard to tell anything without comparing to close competitors

More Related