Student Name: Class: Problem 02-05

HERE COME THE CLOWNS! Balance Sheet June 30, 2007 Assets Cash Notes receivable Accounts receivable Animals Cages Costumes Props and equipment Tents Trucks & wagons Total Liabilities & Stockholders' Equity Liabilities: Notes payable Accounts payable Salaries payable Total liabilities Owners' equity: Capital stock Retained earnings Total

b. Explain what changes would be required in your June 30 balance sheet to reflect the loss of an uninsured tent that cost $14,300.

Given Data P02-05: HERE COME THE CLOWNS! Accounts Payable Accounts Receivable Animals Cages Capital Stock Cash Costumes $ 26,100 7,450 189,060 24,630 310,000 ? 31,500 Notes Payable Note Receivable Props and Equipment Retained Earnings Salaries Payable Tents Trucks & Wagons $ 180,000 9,500 89,580 27,230 9,750 63,000 105,840

Student Name: Class: Problem 02-08 THE SWEET SODA SHOP Balance Sheet September 30, 2007 Assets Cash Accounts receivable Supplies Land Building Furniture & fixtures Total Liabilities & Owners' Equity Liabilities: Notes payable Accounts payable Total liabilities Owners' equity: Capital stock Retained earnings Total

THE SWEET SODA SHOP Balance Sheet October 6, 2007 Assets Cash Accounts receivable Supplies Land Building Furniture & fixtures Total Liabilities & Owners' Equity Liabilities: Notes payable Accounts payable Total liabilities Owners' equity: Capital stock Retained earnings Total

THE SWEET SODA SHOP Income Statement For the Period October 1-6, 2007 Revenues Expenses Net income

Student Name: Class: Problem 02-08 THE SWEET SODA SHOP Statement of Cash Flows For the Period October 1-6, 2007 Cash flows from operating activities: Cash received from revenues Cash paid for expenses Cash paid for accounts payable Cash paid for supplies Cash used in operating activities Cash flows from investing activities: None Cash flows from financing activities: Cash received from sale of capital stock Increase in cash Cash balance, October 1, 2007 Cash balance, October 6, 2007

c. Assume the note payable does not come due for several years. Is The Sweet Soda Shop in a stronger financial position on Sept. 30 or October 6? Explain briefly.

Given Data P02-08: THE SWEET SODA SHOP Accounts Payable Accounts Receivable Building Cash Capital Stock $ 8,500 1,250 45,500 7,400 50,000 Furniture & Fixtures Land Notes Payable Retained Earnings Supplies $ 20,000 55,000 ? 4,090 3,440 30,000 18,000 1,000 1,875 5,500 4,000

Cash received for stock Purchase price of furniture Cash paid for supplies Cost of supplies under normal circumstances Revenues earned and paid in cash Expenses incurred and paid in cash

Student Name: Class: Problem 02-09 BERKELEY PLAYHOUSE Balance Sheet September 30, 2007 Assets Cash Accounts receivable Props and costumes Lighting equipment Liabilities & Owners' Equity Liabilities: Notes payable Accounts payable Salaries payable Total liabilities Owner's equity: Helen Berkeley, capital Total

Total

b. For each of the nine numbered items above, explain your reasoning in deciding whether or not to include the items in the balance sheet and in determining the proper dollar value.

Student Name: Class: Problem 02-09

Given Data P02-09: BERKELEY PLAYHOUSE Balance Sheet September 30, 2007 Assets Cash Accounts Receivable Props and Costumes Theater Building Lighting Equipment Automobile Total $ 21,900 132,200 3,000 27,000 9,400 15,000 $ 208,500 $ 15,000 1,900 5,000 7,200 125,000 18,000 3,000 15,000 3,000 135,000 9,400 0 9,000 15,000 3,900 2,100 25,000 4,200 20,000 50,000 Liabilities & Owners' Equity Liabilities: Accounts Payable $ 6,000 Salaries Payable 29,200 Total Liabilities $ 35,200 Owner's equity Helen Berkeley, Capital 50,000 Total $ 85,200

(1) Cash in company bank account Cash in company safe Cash in personal savings account (2) Dell, Inc. receivable Estimate of future ticket sales (3) Cost of props and costumes Cash paid for props and costumes Note to Actors' Supply Co. (4) Monthly rent on theater building Purchase price of theater building (5) Purchase price of lighting equipment Current value of lighting equipment (6) Purchase price of Jaguar Listed sales price of similar Jaguar (7) Business debts Balance on personal VISA (8) Salary offered to Mario Dane Salary owed to stage hands (9) Original investment in business Recent offer to purchase