Question

Rowland Company was organized on January 1, 2013. At the end of the first year of operations, December 31, 2013, the bookkeeper prepared the following trial balances (amounts in thousands of dollars):
Required:
1. Based on inspection of the two trial balances, prepare the 2013 adjusting entries recorded by the bookkeeper (provide brief explanations).
2. Based on these data, prepare the 2013 closing entries with brief explanations.
3. Answer the following questions (show computations):
a. How many shares were outstanding at year- end?
b. What was the amount of interest expense included in the total expenses?
c. What was the balance of retained earnings on December 31, 2013?
d. What was the average income tax rate?
e. How would the rent receivable and deferred rent revenue accounts be reported on the statement of financial position?
f. Explain why cash increased by $40,000 during the year even though net earnings was comparatively very low.
g. What was the amount of earnings per share for 2013?
h. What was the average selling price of the shares?
i. When was the insurance premium paid and over what period of time did the coverage extend?
j. What was the net profit margin ratio for the year?
k. What was the return on equity for the year?


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  • CreatedAugust 04, 2015
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