17.

value: 1 points

2.

Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. (Record the transactions in given order. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

Cash
Date			Debit			Credit		Balance
April	1
	2
	6
	13
	19
	22
	28
	30

Accounts Receivable
Date			Debit			Credit		Balance
April	9
	22
	25

Office Supplies
Date			Debit			Credit		Balance
April	3
	29

Prepaid Insurance
Date			Debit			Credit		Balance
April	19

Prepaid Rent
Date			Debit			Credit		Balance
April	2

Office Equipment
Date			Debit			Credit		Balance
April	1
	3

Accounts Payable
Date			Debit			Credit		Balance
April	3
	13
	29

Common Stock
Date			Debit			Credit		Balance
April	1

Dividends
Date			Debit			Credit		Balance
April	28

Services Revenue
Date			Debit			Credit		Balance
April	6
	9
	25

Utilities Expense
Date			Debit			Credit		Balance
April	30

Check My WorkeBook Links (5) References

Worksheet	Learning Objective: 02-C3 Describe a ledger and a chart of accounts.	Learning Objective: 02-P2 Prepare and explain the use of a trial balance.
Difficulty: Medium	Learning Objective: 02-C4 Define debits and credits and explain double-entry accounting.
Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.	Learning Objective: 02-P1 Record transactions in a journal and post entries to a ledger.

18.

value: 1 points

3.	Prepare a trial balance as of April 30. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses.Omit the "$" sign in your response.)

TECHNOLOGY CONSULTANTS Trial Balance April 30
	Debit	Credit
(Click to select)Utilities expensePrepaid insuranceServices revenueCashAccounts receivableOffice equipment	$
(Click to select)Services revenueUtilities expenseAccounts receivableCashOffice suppliesOffice equipment
(Click to select)Prepaid rentServices revenueAccounts receivableOffice suppliesPrepaid insuranceOffice equipment
(Click to select)Prepaid rentPrepaid insuranceOffice equipmentOffice suppliesServices revenueAccounts receivable
(Click to select)Office equipmentServices revenuePrepaid rentAccounts receivablePrepaid insuranceOffice supplies
(Click to select)Accounts receivablePrepaid insuranceOffice equipmentPrepaid rentOffice suppliesServices revenue
(Click to select)Accounts receivableAccounts payableServices revenuePrepaid rentOffice suppliesOffice equipment		$
(Click to select)Prepaid rentAccounts receivableServices revenueCommon stockDividendsOffice equipment
(Click to select)Services revenueAccounts receivableDividendsCommon stockPrepaid rentOffice equipment
(Click to select)CashPrepaid insuranceServices revenueUtilities expenseOffice suppliesOffice equipment
(Click to select)CashPrepaid insuranceServices revenueUtilities expenseOffice suppliesOffice equipment
Total	$	$

[The following information applies to the questions displayed below.]

The accounting records of Fabiano Distribution show the following assets and liabilities as of December 31, 2010 and 2011.

December 31	2010	2011
Cash	$ 52,500	$ 18,750
Accounts receivable	28,500	22,350
Office supplies	4,500	3,300
Office equipment	138,000	147,000
Trucks	54,000	54,000
Building	0	180,000
Land	0	45,000
Accounts payable	7,500	37,500
Note payable	0	105,000

Late in December 2011, the business purchased a small office building and land for $225,000. It paid $120,000 cash toward the purchase and a $105,000 note payable was signed for the balance. Mr. Fabiano had to invest $35,000 cash in the business (in exchange for stock) to enable it to pay the $120,000 cash. The business also pays $3,000 cash per month for dividends.

References

Section Break	Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.	Learning Objective: 02-P3 Prepare financial statements from business transactions.
Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.	Learning Objective: 02-C2 Describe an account and its use in recording transactions.

19.

value: 1 points

Required:
1.	Prepare balance sheets for the business as of December 31, 2010 and 2011. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

FABIANO DISTRIBUTION Balance Sheet December 31, 2010
Assets
(Click to select)CashOffice suppliesAccounts receivableOffice equipmentTrucks	$
(Click to select)Accounts receivableOffice suppliesOffice equipmentCashTrucks
(Click to select)Office suppliesAccounts receivableCashOffice equipmentTrucks
(Click to select)Accounts receivableOffice suppliesOffice equipmentTrucksCash
(Click to select)CashAccounts receivableOffice equipmentOffice suppliesTrucks
Total Assets	$
Liabilities
(Click to select)Accounts payableOffice suppliesOffice equipmentCashFabiano, Capital	$
Owner's Equity
Total Equity
Total Liabilities & Equity	$

FABIANO DISTRIBUTION Balance Sheet At December 31, 2011
Assets
(Click to select)CashAccounts payableAccounts receivableOffice equipmentOffice supplies	$
(Click to select)Accounts receivableAccounts payableOffice suppliesOffice equipmentCash
(Click to select)Accounts receivableOffice suppliesTrucksCashOffice equipment
(Click to select)Office equipmentTrucksAccounts receivableOffice suppliesCash
(Click to select)TrucksOffice suppliesOffice equipmentCashAccounts receivable
(Click to select)Accounts receivableCashLandAccounts payableBuilding
(Click to select)CashLandAccounts payableAccounts receivableBuilding
Total Assets	$
Liabilities
(Click to select)Accounts payableOffice suppliesOffice equipmentBuildingCash	$
(Click to select)Note payableAccounts receivableOffice suppliesOffice equipmentCash
Total Liabilities
Owner's Equity
Total Equity
Total Liabilities and Equity	$

Check My WorkeBook Links (4) References

Worksheet	Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.	Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Difficulty: Hard	Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.	Learning Objective: 02-P3 Prepare financial statements from business transactions.

20.

value: 1 points

2.	By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2011. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

Equity, December 31, 2011	$
Equity, December 31, 2010
(Click to select)Decrease in equity in 2011Increase in equity in 2011
(Click to select)Deduct: Additional investmentAdd: Additional investment
(Click to select)Net increase in equity in 2011Net decrease in equity in 2011
(Click to select)Add: DividendsDeduct: Dividends
(Click to select)Net income in 2011Net loss in 2011	$

Check My WorkeBook Links (4) References

Worksheet	Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.	Learning Objective: 02-C2 Describe an account and its use in recording transactions.
Difficulty: Hard	Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.	Learning Objective: 02-P3 Prepare financial statements from business transactions.

21.

value: 1 points

3.	Compute the 2011 year-end debt ratio for the business. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Debt ratio

%