The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers The Mentha Company was incorporated on July 1, 20X1. Mentha had 10 holders of common stock. Laurie Mentha, who was the president and CEO, held 49% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Mentha's first location was a store in Centerville Mall. The following events occured during July: A. The company was incorporated. Common stockholders invested $145,000 cash. B. Purchased merchandise inventory for cash, $55,000. C. Purchased merchandise inventory on open account, $28,000. D. Merchandise carried in inventory at a cost of $42,000 was sold for $90,000, $30,000 for cash and $60,000 on open account. Mentha carries and will collect these accounts receivable. E. Collection of a portion of the preceding accounts receivable, $25,000. F. Payments ofa portion of accounts payable, S15,000. See transaction C. G. Special display equipment and fixtures were acquired on July I for $48,000. Their expected useful life was 48 months with no teminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Mentha paid S15,000 as a down payment and signed a promissory note for $33,000. H. On July 1, Mentha signed a rental agreement with Centerville Mall The agreement called for rent of $1,550 per month, payable quarterly in advance. Therefore, Mentha paid $4.650 cash on July 1. L. The rental agreement also called for a payment of 15% ofall sales. This payment was in addition to the flat $2,350 per month. In this way, Centerville Mall would share in any success of the venture and be compensated for generservices such as cleaning and utilities, This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Mentha made the payment on July 31. J. Wages, salaries, and sales commissions were all paid in cash for all carnings by employees. The amount was S30,000. K. Depreciation expense for July was recognized. See transaction G. L The expiration of an appropriate amount of prepaid rental services was recognized. See transactionH. L Prepare an analysis of Mentha Company's transactions, employing the equation approach demonstrated in Exhibit 15-1 (pg 621). Two additional columns will be needed, one for Equipment and Fixtures and one for Note Payable. Show all amounts in thousands. 2 Prepare a balance sheet as of July 31, 2OXI, and an income statement for the month of July. Ignore income taxes 3 Given these sparse facts, analyze Mentha's performance for July and its financial position as of July 31, 20XI. Sacks Fifth operates 197 fashion specialty retail stores in 28 states. The company's actual data (slightly simplified) follow for its fiscal year ended June 15, 2009 (in millions of dollars): Assets, beginning of period Assets, end of period Liabilities, beginning of period $5,850 V. B. Liabilities, end of period Paid-in capital, beginning of period Paid-in capital, end of period Retained carmings, beginning of period Retained carnings, end of period 6,041 979 495 D. Revenues 8.550 Costs and expenses Net income 613 Dividends 336 Additional investments by stockholders 152 Find the unknowns (in millions), showing computations to support your answers
Expert Answer:
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
The Sibelius Company was incorporated on 1 March X1. It carries a commercial activity. The following transactions were undertaken during the first month of operation of Sibelius Co. 1 March 1...
-
Window Shine Ltd. was incorporated on July 1, 20X1, and purchased an existing business on the same date. The purchase included the following assets: Delivery trucks...
-
Steve Nash Company was incorporated on January 2, 2009, but was unable to begin manufacturing activities until July 1, 2009, because new factory facilities were not completed until that date. The...
-
Aria Perfume, Inc.. sold 3,210 boxes of white musk soap during January of 2016 at the price of $90 per box. The company offers a full refund for any product returned within 30 days from the date of...
-
A particular basketball player hits 70% of her free throws. When she tosses a pair of free throws, the four possible simple events and three of their associated probabilities are as given in the...
-
At the end of the accounting period, Houston Company had $12,000 of par value common stock issued, additional paid in capital of $11,000, retained earnings of $12,000, and $4,000 of treasury stock....
-
Although everyone makes mistakes, describe how history repeats itself when there are patterns of progress and regression in the provision of patient care. In forming your answer, consider how...
-
The net income (after income tax) of McCants Inc. was $2 per common share in the latest year and $6 per common share for the preceding year. At the beginning of the latest year, the number of shares...
-
Interserve and Kier Group can borrow for one year at the following rates: Interserve Kier Group Fixed rate 4.50% 5.10% Floating rate LIBOR + 0.15% LIBOR + 0.35% Calculate the quality spread...
-
A box B contains 1 white ball, 3 red balls and 2 black balls. Another box B contains 2 white balls, 3 red balls and 4 black balls. A third box B3 contains 3 white balls, 4 red balls and 5 black...
-
TCP is a very symmetric protocol, but the client/server model is not. Consider an asymmetric TCP-like protocol in which only the server side is assigned a port number visible to the application...
-
An organization has been assigned the prefix 200.1.1/24 (a class C) and wants to form subnets for four departments, with hosts as follows: There are 145 hosts in all. (a) Give a possible arrangement...
-
Learn about a key escrow, or key surrender, scheme (for example, Clipper). What are the pros and cons of key escrow?
-
In stop-and-wait transmission, suppose that both sender and receiver retransmit their last frame immediately on receipt of a duplicate ACK or data frame; such a strategy is superficially reasonable...
-
You are an Internet service provider; your client hosts connect directly to your routers. You know some hosts are using experimental TCPs and suspect some may be using a greedy TCP with no congestion...
-
the Great Plains Medical facility had budgeted negative cash flow for the month of March of $30,000. In the full year cash budget, February had budgeted negative cash flow of $47,500 and April was...
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
Platt Enterprises started a wholesale business two years ago and has made a profit from the beginning. To date, the company has been storing merchandise inventory in a public warehouse, but the...
-
Briefly explain the tax treatment of a RESP.
-
How does the issuing of a bond at a premium affect the after-tax cost of financing to the corporate issuer?
-
Alan, Bob and Charles are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The statement of financial position for the partnership as at 30 June 2016 is as follows: Charles...
-
The statement of financial position of A. Barnes and C. Darwin at 31 March 2015 is as follows: The partners share profits and losses: Barnes three-fifths and Darwin two-fifths. At the date of the...
-
At 31 December 2017, the statement of financial position of A, B and C, who are equal partners, was as follows: A retired at that date. In order to determine the amount due to him the following...
Study smarter with the SolutionInn App