Brianna Webb, a connoisseur of fine chocolate, opened Bris Sweets in Collegetown on February 1, 2011. The shop specializes in a selection of gourmet chocolate
candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the stores financial records. The following transactions
occurred in February 2011, the first month of operations. a. Received four shareholders’ contributions totaling $28,900 cash to form the corporation; issued stock.
b. Paid three months’ rent for the store at $1,750 per month (recorded as prepaid expenses). c. Purchased and received candy for $6,200 on account, due in 60 days.
d. Purchased supplies for $1,430 cash. e. Negotiated and signed a two-year $14,000 loan at the bank. f. Used the money from (e) to purchase a computer for $3,150
(for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper
for $490 cash. h. Made sales on Valentine’s Day totaling $3,800; $2,675 was in cash and the rest on accounts receivable. The cost of the candy sold was $2,000. i.
Made a $620 payment on accounts payable. j. Incurred and paid employee wages of $1,000. k. Collected accounts receivable of $150 from customers. l. Made a repair
to one of the display cases for $125 cash. m. Made cash sales of $2,700 during the rest of the month. The cost of the candy sold was $1,510. 1&2. Record in the
T-accounts the effects of each transaction for Bris Sweets in February, referencing each transaction in the accounts with the transaction letter. Show the ending
balances in the T -accounts. 3.1 Prepare an income statement at the end of the month ended February 28, 2011. 3.2 Prepare statement of stockholders equity at the
end of the month ended February 28, 2011. 3.3 Prepare balance sheet at the end of the month ended February 28, 2011. (Be sure to list the assets and liabilities in
order of their liquidity. Omit the “$” sign in your response.) 5. After three years in business, you are being evaluated for a promotion. One measure is how
efficiently you managed the assets of the business. The following data are available: 2013* 2012 2011 Total assets $ 85,000 $ 50,500 $ 35,500 Total liabilities
49,000 17,500 18,500 Total stockholders equity 36,000 33,000 17,000 Total sales 94,500 78,000 56,000 Net income 22,300 11,000 4,200 * At the end of 2013, Brianna
decided to open a second store, requiring loans and inventory purchases prior to the stores opening in early 2014. Compute the total asset turnover ratio for 2012
and 2013.
candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the stores financial records. The following transactions
occurred in February 2011, the first month of operations. a. Received four shareholders’ contributions totaling $28,900 cash to form the corporation; issued stock.
b. Paid three months’ rent for the store at $1,750 per month (recorded as prepaid expenses). c. Purchased and received candy for $6,200 on account, due in 60 days.
d. Purchased supplies for $1,430 cash. e. Negotiated and signed a two-year $14,000 loan at the bank. f. Used the money from (e) to purchase a computer for $3,150
(for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper
for $490 cash. h. Made sales on Valentine’s Day totaling $3,800; $2,675 was in cash and the rest on accounts receivable. The cost of the candy sold was $2,000. i.
Made a $620 payment on accounts payable. j. Incurred and paid employee wages of $1,000. k. Collected accounts receivable of $150 from customers. l. Made a repair
to one of the display cases for $125 cash. m. Made cash sales of $2,700 during the rest of the month. The cost of the candy sold was $1,510. 1&2. Record in the
T-accounts the effects of each transaction for Bris Sweets in February, referencing each transaction in the accounts with the transaction letter. Show the ending
balances in the T -accounts. 3.1 Prepare an income statement at the end of the month ended February 28, 2011. 3.2 Prepare statement of stockholders equity at the
end of the month ended February 28, 2011. 3.3 Prepare balance sheet at the end of the month ended February 28, 2011. (Be sure to list the assets and liabilities in
order of their liquidity. Omit the “$” sign in your response.) 5. After three years in business, you are being evaluated for a promotion. One measure is how
efficiently you managed the assets of the business. The following data are available: 2013* 2012 2011 Total assets $ 85,000 $ 50,500 $ 35,500 Total liabilities
49,000 17,500 18,500 Total stockholders equity 36,000 33,000 17,000 Total sales 94,500 78,000 56,000 Net income 22,300 11,000 4,200 * At the end of 2013, Brianna
decided to open a second store, requiring loans and inventory purchases prior to the stores opening in early 2014. Compute the total asset turnover ratio for 2012
and 2013.
