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

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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.

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