• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Maynard Company Balance Sheets a of June 1 and June 30 compared.

Extracts from this document...

Introduction

Question 1: Answer: Balance Sheets as of June 1 and June 30 Maynard Company Balance Sheet as of June 1 Assets Liabilities and Shareholders' Equity Current Assets Current Liabilities Cash 34,983.00 Accounts Payable 8,517.00 Accounts Receivable 21,798.00 Bank Notes Payable 8,385.00 Note Receivable, Diane Maynard 11,700.00 Taxes Payable 5,700.00 Merchandise Inventory 29,835.00 Accrued Wages Payable 1,974.00 Supplies on Hand 5,559.00 Total Current Liabilities 24,576.00 Prepaid Insurance 3,150.00 Total Current Assets 107,025.00 Other Noncurrent Liabilities 2,451.00 Property, Plant, and Equipment Total Liabilities 27,027.00 Land 89,700.00 Building 585,000.00 Shareholder's Equity Less: Accumulated Depreciation 156,000.00 429,000.00 Capital Stock 390,000.00 Equipment 13,260.00 Retained Earnings 221,511.00 Less: Accumulated Depreciation 5,304.00 7,956.00 Net Property, Plant and Equipment 526,656.00 Total Shareholder's Equity 611,511.00 Other Noncurrent Assets 4,857.00 Total Assets ...read more.

Middle

427,050.00 Shareholder's Equity Equipment 36,660.00 Capital Stock 390,000.00 Less: Accumulated Depreciation 5,928.00 30,732.00 Retained Earnings 229,446.00 Net Property, Plant and Equipment 547,482.00 Total Shareholder's Equity 619,446.00 Other Noncurrent Assets 5,265.00 Total Assets 681,888.00 Total Liabilities and Shareholder's Equity 681,888.00 Question 2: Make comments about how the financial condition as of the end of June 30 compared with that at the beginning of June. Answer: The financial condition of the company as of the end of June 30 compared to that of June 1 is better in the view of the management. The company has increased its total assets to $ 43,350, this increase comes from short term borrowings and net earnings of the month. ...read more.

Conclusion

supposedly its Retained earnings will have a balance of $241,146 , but since Diane Maynard paid herself a dividend amounting to $11,700 at the end of June that transaction decreases the Retained Earnings, and resulted to Retained Earnings Ending balance of $ 229,446.00. Question 4: As of June 30, do you feel that Maynard Company is worth the amount in the Shareholder's Equity, $ 619,446.00? Explain. Answer: Yes, Maynard Company is worth its Shareholders Equity. Shareholders equity is composed of all stockholders' investment and all profits the company made in its entire existence. It can also be expressed as Total Assets less all Liabilities, for this we can say that a company's worth is its Stockholder's Equity or also known as Net Worth. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. A2 Business CourseWork

    - The persons of whom the data is may be accessed by that person at any time. It may be altered or withdrawn at any time by that person. If a customer wishes to withdraw from the club card scheme and wish to withdraw the information held about them Tesco must therefore remove it within a given time period.

  2. Accounting Revision Notes

    Liquidity: the ease with which an asset can be converted into cash. Net Worth: The difference between the total assets and total liabilities of a business. The Balance Sheet and T-Accounts Balance Sheet Left Side (Assets/Debit Balance) Right Side (Liabilities+ Owner's equity/ Credit)

  1. Financial Ratio Analysis.

    2.2.3 Revenue Recognition Accrual accounting is based on the matching of cost with the revenue they generate. It is crucially important under this convention that we can establish the point at which revenue may be recognised so that the correct treatment can be applied to the related costs.

  2. The company I'm reporting on is Kraft Foods Incorporated - accounting principles.

    2002 and they hope it will keep rising for many years to come as they continue to add new products. Trend in Expenses There are numerous categories that make up the expenses for Kraft. These include marketing, administration and research costs (MAR), amortization of goodwill and other intangible assets, interest and other debt expenses.

  1. Balance sheets and banks assets. Likely effects of the recession on business.

    have an adverse effect on the economy by forcing us into a downward spiral of small and mid level companies going bust ,which will in turn make unemployment levels rise , mortgage payments and loan payments will then get defaulted and spending is reduced in most sectors .

  2. Profit & Loss Accounts and Balance sheet.

    This would give them less profit because of these factors. Mr. Kong Han should take immediate action upon this ratio because Gross profit helps a company to see what percentage of its earning after costs (for products and/or services) is profit.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work