1. The following information was made available from theincome statement and balance sheet of Lauren Company.Item 12/31/10 12/31/09Accounts Receivable $53400 58600Accounts Payable 35600 32700Merchandise Inventory 85000 79000Sales (2010) 243000Interest Revenue (2010) 5600Dividend Revenue (2010) 1200Tax Expense (2010) 12300Salaries Expense (2010) 28000COGS (2010) 65000Interest Expense (2010) 3600Operating Expenses 28500Complete the cash flow from operating activities section for Lauren Company using the direct method for the year ended December 31 2010.2. Given the following balance sheet complete a horizontal analysis. Compute the percentage to the nearest tenth of a percent.Jill s BikesComparative Balance SheetFor Years Ended December 31 2011 and 2010(in thousands) 2011 2010 Difference PercentageAssetsCurrent AssetsCash and Equivalents $72 $94Accounts Receivable net 122 104Inventory 288 232Total Current Assets 482 430Property Plant and Equipment 638 358Total Assets $1120 $788LiabilitiesCurrent LiabilitiesAccounts Payable $242 $148Accrued Liabilities 48 66Total Current Liabilities 290 214Long-Term Liabilities 346 208Total Liabilities 636 422Stockholders EquityCommon Stock 70 60Retained Earnings 414 306Total Stockholders Equity 484 366Total Liabilities andStockholders Equity $1120 $7881. Record the following transactions using the accounting equation.Example: Assets = Liabilities + Equity XXXX(cash) XXXX(accounts payable)A. Amanda invests $17000 cash into her merchandising business.B. She buys $6500 of office equipment and $3000 of office supplies with cash from Office Depot.C. Additional purchases were supplies for $35000 on account from various suppliers.2. Journalize the following transactions and omit the explanations.A. ABC Corporation purchased $15000 of office furniture by putting $7000 down in cash and the rest on account on April 8.B. The corporation paid $60000 for a two-year lease on April 19.C. The corporation had sales of $45000 of which $35000 were on account on April 20.D. The corporation borrowed $25000 by signing a note payable on April 22.E. The corporation paid $1250 on one of its accounts payable on April 26.3. Prepare a trial balance from the following information for Learn a New Language Inc. for December 31 2012.Accounts payable $5012Common stock $9692Cash $3928Notes payable $1439Wages expense $777Marketing expense $493Equipment $8345Accounts receivable $1142Inventory $8074Sales $66164. Compute the missing information from this post-closing trial balance.Cash $34689Accounts Receivable 9467Prepaid Rent 5000Prepaid Insurance (A)Supplies 944Accounts Payable $5389Wages Payable (B)Common Stock 37049Retained Earnings 8234_______ _______Total $52356 $523565. Journalize the following transactions using the perpetual inventory method.Aug. 6 Purchased $830 of inventory on account from Johnston with terms of 2/10 n/30.Aug. 8 Purchased $2611 of inventory for cash from Pillner Company.Aug.15 Paid for August 6 purchase from Johnston.Aug. 17 Purchased $1743 of merchandise on account from Luis Company with Terms of 3/15 n/45.6. Given the following information prepare a balance sheet for Isaiah s Tool Shed for the year ending December 31 2012.Cash $65750 Retained Earnings $179319Common Stock $35000 Equipment $27500Accounts Receivable $11478 Accounts Payable $29450Land $30000 Inventory $78311Prepaid Supplies $7357 Income Taxes Payable $4209Office Computers $11345 Other PPE $31446Accum. Depr. (all) $23459 Prepaid Insurance $8250

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