• 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

    If Tesco breaks this law they can land a heavy punishment. Consumer protection act: This act is designed to protect customers from unfair trade. They are designed to enable fair competition and enable truthful information in the market. Essentially it is designed to prevent business that practice unfair selling techniques from gaining an advantage.

  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 Defining Accrual accounting 2.2.1 Accrual accounting It is very important to grasp the principle, which is applied in nearly all businesses' accounts, that accounts are not prepared on a cash basis but on an accrual (or earnings) basis. That is, a sale or purchase is dealt with in the

  2. Profit & Loss Accounts and Balance sheet.

    Net Profit: - Net Profit in the year 2005 was only 28% but it has been decreased by 1% in the following year (2006) and again the following year (2007) it decreases by 9.2%. This means that the ratio is getting worse.

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

    This is primary due to the acquisition of Nabisco. Nabisco has brought so many new products into the Company, which in turn has made revenue jump significantly. The revenues in years prior to 2000 have a much closer relationship to each other.

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

    Decrease risk adjusted assessments * Change the composition of assets in favour of those which have a lower risk weighting. Therefore over time, reduce lending to private individuals and small businesses The effect of both of these actions will re-build the capital ratio level , however these actions will

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