1. Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. Debit Credit
Accounts receivable 677
Building and equipment 928
Cash 48
Interest receivable 40
Inventory 33
Land 159
Notes receivable (long-term) 489
Prepaid rent 37
Supplies 12
Trademark 44
Accounts payable 657
Accumulated depreciation 78
Additional paid-in capital 474
Dividends payable 25
Common stock (at par) 10
Income tax payable 61
Notes payable (long-term) 835
Retained earnings 299
Deferred revenue 28
Totals 2,467 2,467
What would Symphony report as total assets?
a) $1,551 millions.
b) $2,395 millions.
c) $2,470 millions.
d) $2,377 millions.
2. Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores.
Debit Credit
Accounts receivable-trade 697
Building and equipment 923
Cash-checking 50
Interest receivable 37
Inventory 34
Land 151
Notes receivable (long-term) 479
Petty cash fund 8
Prepaid rent 25
Supplies 9
Trademark 41
Accounts payable-trade 612
Accumulated depreciation 72
Additional paid-in capital 478
Allowance for uncollectible accounts 20
Cash dividends payable 24
Common stock, at par 11
Income tax payable 58
Notes payable (long-term) 815
Retained earnings 326
Deferred revenues 38
Totals 2,454 2,454
What would Symphony report as total shareholders' equity?
a) $1,630 millions.
b) $839 millions.
c) $815 millions.
d) $791 millions.
3. Listed below are year-end account balances (in $ millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.
Debit Credit
Accounts receivable-trade 691
Building and equipment 924
Cash-checking 50
Installment receivables 59
Interest receivable 49
Inventory 29
Land 170
Notes receivable Long-term 472
Petty cash funds 7
Prepaid expenses (for
coming year) 39
Supplies 10
Trademark 58
Accounts payable-trade 545
Accumulated depreciation 65
Additional paid-in capital, common 466
Allowance for uncollectible accounts 18
Cash dividends payable 25
Common stock, at par 12
Income tax payable 49
Notes payable (long-term) 591
Retained earnings 47
Deferred revenues 29
Cash dividends declared-common 127
Income summary 838
Totals 2,68 52,685
What is the amount of working capital for Symphony?
a) $219 millions.
b) $256 millions.
c) $268 millions.
d) $283 millions.