Question

Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the previous year, the accounting records reflected total assets of $670.000 and total liabilities of $285,000. During the current year, the following summarized events occurred: a. Issued additional shares of common stock for $155,000 cash b. Borrowed $122,500 cash from the bank and signed a 10-year note. d Purchased equipment for the new addition for 48.50, paying 34.850 im oash and signing a note due in e. Returned a $4,850 piece of equipment, from (d), because it proved to be defective; received a reduction t. Purchased a delivery truck (equipment) for $12.750: paid $8.925 cash and signed a nine month note for g. A stockholder sold $5.750 of his stock in Mallard Incorporated to his neighbor. six months for the balance. of the note payable. the remainder Required 1 Complete the spreadsheet that follows, using plus (+) for increases and minus ㈠ for decreases for each account. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities +Stockholders Equity Notes Payable Common Retained Earnings Cash Equipment Buildings Stock a. b. c. d. e. End Based on beginning balances plus the completed spreadsheet provide the Total asse:s, liabilities and stockholders' equity at the end of year Amount a. Total assets at the end of the year b. Total liabilities at the end of the year o. Total stocknolders equityY

Answer 1

1.

	Assets			=	Liabilities	+	Stockholders Equity
	Cash	Equipment	Buildings		Notes Payable		Common Stock	Retained Earnings
a.	$          150,000	$               -	$                   -		$                   -		$        155,000	$            -
b.	$          122,500	$               -	$                   -		$        122,500		$                   -	$            -
c.	$       (242,000)	$               -	$        242,000		$                   -		$                   -	$            -
d.	$            (4,850)	$      48,500	$                   -		$          43,650		$                   -	$            -
e.	$                     -	$      (4,850)	$                   -		$          (4,850)		$                   -	$            -
f.	$            (8,925)	$      12,750	$                   -		$            3,825		$                   -	$            -
g.	$                     -	$               -	$                   -		$                   -		$                   -	$            -
End	$            16,725	$      56,400	$        242,000		$        165,125		$        155,000	$            -

	Notes
a.	Issued additional share will affect the increase in Cash and Increase in Common Stock
b.	Borrowing Cash from Bank will Effect an Increase in Cash and Increase in Note Payable
c.	Addition to a Building will effect an increase in Building and Decrease in Cash when paid to Contractor
d.	Purchase in equipment will increase Equipment if the purchase made by cash will affect a Decrease in Cash and Purchase made on Note payable will increase in Note payable
e.	Return of Equipment will decrease the equipment and (Note payable as Given in the Question)
f.	Purchase of delivery truck will increase the equipment and if the purchase made by cash will affect a decrease in Cash and made on Notes payable will increase in Note Payable
g.	Sale of Common stock by a stakeholder will not have any effect on our company books

3. Add opening balances(i.e Beginning Balances) to the End figures in the Above answer to get total assets, Liabilities & Stakeholder equity