HCS 380 Week 1 WileyPLUS (Ex 1-15, Ex Problem 1-3A, Ex 2-1, Ex 2-5, Problem 2-3A) NEW

Complete the assigned exercises in WileyPLUS.

Excel Exercise 1-15
Excel Problem 1-3A
Exercise 2-1
Exercise 2-5
Problem 2-3A
Problem 2-2A

You should see the following assignments that are due for a grade:
Chapter 1 – Excel assignment;
Chapter 2 – Homework assignment – wileyplus prepare excel sheet
Chapter 2 – Problems — prepare excel sheet
NOTE: Assignment must be completed by Due Date.

E1-15
Classify items as assets, liabilities, and stockholders’ equity, and prepare accounting equation
Suppose the following items were taken from the balance sheet of Nike, Inc. (All items are in millions.)

1. Cash $2,291.1 7. Inventory $2,357.0
2. Accounts receivable 2,883.9 8. Income taxes payable 86.3
3. Common stock 2,874.2 9. Equipment 1,957.7
4. Notes payable 342.9 10. Retained earnings 5,818.9
5. Buildings 3,759.9 11. Accounts payable 2,815.8
6. Mortgage payable 1,311.5

Instructions
(a) Classify each of these items as an asset, liability, or stockholders’ equity and determine the total
dollar amount for each classification.
(b) Determine Nike’s accounting equation by calculating the value of total assets, total liabilities, and
total stockholders’ equity.
(c ) To what extent does Nike rely on debt versus equity financing?
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?”

P1-3A
Prepare an income statement, retained earnings statement and balance sheet; discuss results
On June 1, Hightower Service Co. was started with an initial investment in the company of $22,100 cash.
Here are the assets, liabilities, and common stock of the company at June 30, and the revenues and
expenses for the month of June, its first month of operations:

        Cash    $4,600             Notes payable $12,000
        Accounts receivable    4,000               Accounts payable        500
        Service revenue           7,500               Supplies expense         1,000
        Supplies           2,400               Maintenance and repairs expense       600
        Advertising expense   400                  Utilities expense          300
        Equipment       26,000             Salaries and wages expense    1,400
        Common Stock           22,100                        

In June, the company issued no additional stock but paid dividends of $1,400.

Instructions
(a) Prepare an income statement and retained earnings statement for the month of June and a balance sheet
at June 30, 2014.
(b) Briefly discuss whether the company’s first month of operations was a success.
(c ) Discuss the company’s decision to distribute a dividend.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .

Exercise 2-1

Classify each of the following financial statement items taken from Mordica Corporation’s balance sheet.

                                                        Accounts payable
                                                        Accounts receivable

Entry field with incorrect answer Accumulated depreciation—equipment
Buildings
Cash
Interest payable
Goodwill
Income taxes payable
Inventory
Stock investments (to be
Land (in use)
Mortgage payable
Supplies
Equipment
Prepaid rent

Exercise 2-5
http://edugen.wiley.com/edugen/art2/common/pixel.gif

These items are taken from the financial statements of Donavan Co. at December 31, 2014.
Buildings

$121,035
Accounts receivable

14,414
Prepaid insurance

3,661
Cash

13,545
Equipment

94,266
Land

70,013
Insurance expense

892
Depreciation expense

6,063
Interest expense

2,974
Common stock

68,640
Retained earnings (January 1, 2014)

45,760
Accumulated depreciation—buildings

52,166
Accounts payable

10,868
Notes payable

107,078
Accumulated depreciation—equipment

21,416
Interest payable

4,118
Service revenue

16,817

Problem 2-3A

You are provided with the following information for Ramirez Enterprises, effective as of its April 30, 2014, year-end.
Accounts payable

$ 868
Accounts receivable

918
Accumulated depreciation—equipment

670
Cash

1,378
Common stock

1,224
Cost of goods sold

1,094
Depreciation expense

301
Dividends

359
Equipment

2,528
Income tax expense

199
Income taxes payable

169
Insurance expense

244
Interest expense

434
Inventory

1,075
Land

3,208
Mortgage payable

3,608
Notes payable

169
Prepaid insurance

94
Retained earnings (beginning)

1,600
Salaries and wages expense

666
Salaries and wages payable

256
Sales revenue

5,208
Stock investments (short-term)

1,274
Prepare an income statement for Ramirez Enterprises for the year ended April 30, 2014.

Problem 2-2A

These items are taken from the financial statements of Tresh Corporation for 2014.
Retained earnings (beginning of year)

$34,462
Utilities expense

2,128
Equipment

69,462
Accounts payable

23,048
Cash

12,343
Salaries and wages payable

4,884
Common stock

12,000
Dividends

12,000
Service revenue

71,415
Prepaid insurance

5,384
Maintenance and repairs expense

1,672
Depreciation expense

3,189
Accounts receivable

16,448
Insurance expense

2,611
Salaries and wages expense

40,415
Accumulated depreciation—equipment

19,843