At the end of Year 1, Clayton Company had $6,000 of cash, $7,000 land, $2,000 of liabilities, $3,000 of common stock, and $8,000 of retained earnings. During Year 2, Clayton experienced the following events. 1. Borrowed $1,500 cash. 2. Earned $6,500 of cash revenue. 3. Paid $4,000 of cash expenses. 4. Paid $5,000 cash to purchase land. Based on this information the amount of total assets, total liabilities, and retained earnings appearing on the Year 2 financial statements is:. Total Assets Total Liabilities Retained Earnings A. $ 5,000 $ 5,500 $ 8,500 B. $ 17,000 $ 3,500 $ 10,500 C. $ 11,000 $ 2,000 $ 10,500 D. $ 11,000 $ 2,500 $ 5,500

B. $ 17,000 $ 3,500 $ 10,500

Explanation:

First Record the transactions for year 2 as follows :

Journal 1

Cash $1,500 (debit)

Note Payable $1,500 (credit)

Journal 2

Cash $6,500 (debit)

Revenue $6,500 (credit)

Journal 3

Expenses $4,000 (debit)

Cash $4,000 (credit)

Journal 4

Land $5,000 (debit)

Cash $5,000 (credit)

The next step is to adjust the Year 1 Balances with the transactions

Assets

Cash ($6,000 + $1,500 + $6,500 -  $4,000 - $5,000)    $5,000

Land ($7,000 + $5,000)                                                   $12,000

Total Assets                                                                      $17,000

Liabilities

Calculations ($2,000 + $1,500)                                        $3,500

Total Liabilities                                                                  $3,500

Equity

Common Stock ($3,000 + $0)                                         $3,000

Retained Earnings ($8,000 + $6,500 - $4,000)            $10,500

Total Equity                                                                      $13,500

Conclusion :

The Option that gives correct totals for Assets, Liabilities and Retained Equity is B.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.