Professional Documents
Culture Documents
Management Accounting - I (Section A, B & H) Term I (2021-22)
Management Accounting - I (Section A, B & H) Term I (2021-22)
Term I (2021-22)
Exercise: 1-1.
As of December 31, Charles Company had $12,000 in cash, held $95,000 of inventory, and owned
other items that originally cost $13, 000. Charles Company also had borrowed $40,000 from First
City Bank. Prepare a balance sheet for Charles Company as of December 31. Be sure to label each
item and each column with appropriate terms.
Exercise: 1-2.
Selected balance sheet items are shown for the Microtech Company. Compute the missing amounts
for each of the four years. What basic accounting equation did you apply in making your
calculations?
Exercise: 1-3.
Selected income statement items are shown for Astrotech Company. Compute the missing amounts
for each of the four years. What basic accounting equation did you apply in making your
calculations?
(Hint: To estimate the Year 4 missing numbers, compute the typical percentage each expense item is
of sales for Years 1 to 3 and apply the percentage figure for each expense item to Year 4’s sales.)
1
Tax expense ? 1,019 945 ?
Net income $1,679 $1,528 $1,418 ?
Exercise 1.4:
Using the information given, calculate the missing amount in each of the independent cases below:
a. b. c.
Current Assets $31,500 $_______ $45,000
Noncurrent Assets $36,000 $60,000 $66,000
Current Liabilities $21,000 $15,000 $______
Noncurrent Liabilities $18,000 $30,000 $10,500
Contributed Capital $______ $33,000 $33,000
Retained Earnings $12,000 $______ $66,000
Shareholders' Equity $______ $54,000 $______
Exercise 1.5:
Using the information given, calculate the missing amounts in each of the independent cases below:
a. b. c.
Assets $______ $288,000 $198,000
Liabilities $36,000 $ 90,000 $132,000
Contributed Capital $45,000 $______ $ 48,000
Retained Earnings 1/1 $______ $0 $ 6,000
Net Income $10,800 $45,000 $33,000
Dividends $6,000 $21,600 $______
Retained Earnings,
$24,000 $______ $______
12/31
Exercise 1.6:
Selected balance sheet amounts for Georgia-Pacific Corporation, a forest products company, for four
recent year appear below (amounts in $ millions).
2
b
Current Assets – Current Liabilities = –$1,160.
You are required to compute the missing balance sheet amounts for each of the four years.