Acc 291 Week 3 Financial Ratios Paper

Angela Mohr
Corporate Accounting
Week 3
Individual work -
Ratios compare financial data among companies or within a single company. They reflect accounting transactions and conditions of a company. To further explore ratios and their effect on transactions and finances, please complete the following.
- Exercise 3-6 “Normal Account Balances” on pg. 133
- Exercise 3-14 “Journal Entries” on pg 135
- Exercise 3-2 “Transaction Analysis and Financial Statements” on pg 137.
Exercise 3-6, pg 133
1. Cash - Debit
2. Prepaid Insurance - Credit
3. Retained Earnings- Credit
4. Bonds Payable - Credit
5. Investments - Debit
6. Capital Stock - Credit
7. Advertising Fees Earned - Debit
8. Wages & Salaries Expense - Debit
9. Wages
Cash$750
Services Revenue$750
4. Equipment$4,240
Accounts Payable $4,240
5. Asset (whatever the note was for)$2,500
Notes Payable $2,500
6. Cash$890
Accounts Receivable $890
7. Land$50,000
Capital Stock $50,000
8. Salary & Wages $4,000
Cash$4,000
9. Accounts Payable$500
Cash $500
Problem 3-2, pg 137 Assets = Liabilities + Stockholders’ Equity
Transaction Accounts Accounts Notes capital Retained # Cash Receivable Equipment Building Land Payable Payable Stock Earnings
5-1 $18,000 $3,000 $3,000 + $18,000
5-5 - $15 - $15
Bal. $17,985$3,000$3,000 $18,000 - $15
5-9 - $4,400$4,400
Bal $13,585$7,400$3,000 $18,000 -$15
5-10 $ 100$ 100
Bal$13,585$7,500$3,100 $18,000 -$15
5-15 - $ 125- $125
Bal$13,460$7,500$3,100 $18,000 - $140
5-17 $ 1,800$1,800
Bal$15,260$7,500$3,100 $18,000$1,660
5-24 $1,200$1,200
Bal$15,660 $1,200$7,500$3,100 $18,000$2,860
5-29 $ 600 - $600
Bal $15,860 $ 600$7,500$3,100 $18,000