Page 185 - Accounting Principles (A Business Perspective)

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h. Bonds of another corporation (a 20-year
investment).
i. Notes payable, due in six months.
j. Accumulated depreciation.
Exercise O The following data are from the 2001 annual report of The Procter & Gamble Company and its

subsidiaries. This company markets a broad range of laundry, cleaning, paper, beauty care, health care, food, and
beverage products in more than 140 countries around the world. Leading brands include Ariel, Crest, Pampers,
Pantene, Crisco, Vicks, and Max Factor. The dollar amounts are in millions.
June 30
2001 2000
Current assets $10,889 $10,146
Current liabilities 9,846 10,141
Calculate the current rations for the two years. Comment on whether the trend is favorable or unfavorable.

Problems
Problem A The following adjusted trial balance is for Jasper Appliance Repair Company:
JASPER APPLIANCE REPAIR COMPANY
Adjusted Trial Balance
2010 June 30
Debits Credits
Cash $ 63,000
Accounts Receivable 42,000
Trucks 110,000
Accumulated Depreciation—Trucks $ 30,000
Accounts Payable 10,800
Notes Payable 20,000
Capital Stock 50,000
Retained Earnings, 2009 July 1 5,500
Dividends 10,000
Service Revenue 230,000
Rent Expense 12,000
Advertising Expense 5,000
Salaries Expense 90,000
Supplies Expense 1,500
Insurance Expense 1,200
Depreciation Expense—Trucks 10,000
Interest Expense 1,000
Miscellaneous Expense 600
$346,300 $346,300
Prepare the closing journal entries at the end of the fiscal year, 2010 June 30.
Problem B The adjusted trial balance for Denver Architects , Inc., follows:
DENVER ARCHITECTS, INC.
Adjusted Trial Balance
2010 December 31
Debits Credits
Cash $ 90,000
Accounts Receivable 20,000
Interest Receivable 200

Accounting Principles: A Business Perspective 186 A Global Text