The following general equation can be used to determine missing
The following general equation can be used to determine missing information about balance sheet accounts:
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Use this equation to determine the missing information in each of the following in dependent situations. For each case, assume that the year-end is June 30. You can also use an accounting equation spreadsheet to determine the missing information.
a. On June 30, 2017, LaSalle Ltd. (LaSalle) owed its employees \$456,000. During fiscal 2017, LaSalle's employees earned \$3,750,000 and were paid \$3,360,000. How much did LaSalle owe its employees on July 1, 2016?
b. On July 1, 2017, Gambo Ltd. (Gambo) had \$975,000 of inventory on hand. During fiscal 2018, Gambo sold \$980,000 of inventory and purchased \$2,445,000 of inventory. How much inventory did Gambo have on June 30, 2018?
c. Norquay Inc. (Norquay) purchases all of its inventory on credit. On July 1, 2017, Norquay had \$750,000 of inventory on hand and on June 30, 2018 it had \$600,000 of inventory. Cost of goods sold during fiscal 2018 was \$2,850,000. The beginning and ending balances in Norquay's accounts payable account on July 1, 2017 and June 30, 2018 were \$405,000 and \$309,000 respectively. How much did Norquay pay its suppliers during fiscal 2018?
d. On July 1, 2016, Holstein Inc. (Holstein) had \$1,110,000 of accounts receivable and on June 30, 2017 it had \$1,260,000 of accounts receivable. During fiscal 2017, Holstein collected \$6,450,000 from customers. What amount of credit sales did Holstein make during fiscal 2017? Assume all of Holstein’s sales were on credit.
e. Kanata Inc. (Kanata) capitalizes the cost of decorating a new store and amortizes them over five years. On July 1, 2017 the balance in Kanata’s unamortized store decoration costs account on the balance sheet was \$445,000. On June 30, 2018 the balance in the account was \$485,000. During fiscal 2018, the amorization expense for store decoration costs was \$90,000. What amount of store decoration costs did Kanata capitalize during fiscal 2018? Assume that Kanata doesn’t have a separate contra-asset account for accumulating amorization for thisaccount.
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