Team instructions: Provide students with copies of the financial statements for Team Shirts for June and July. Divide the class into teams of three or four people. Give the students time in class to answer the following questions.
Each team should turn in only one copy of the answers for grading. All team members will receive the same grade.
1. Does Team Shirts have any estimated liabilities?
If yes, then name them.
2. Calculate the debt-to-equity ratio for July.
151,654 / (5,000 + 75,856 )
3. Which financial statement(s) do you need to calculate this ratio?
4. Calculate the debt-to-equity ratio for June.
42,750 / (5,000 + 22,072 )
5. Has the company's financial leverage increased?
6. What business event explains the change in the debt-to-equity ratio?
7. Has the company issued any bonds?
8. Did the company make any payments on its long-term debt in July?
9. Which financial statement shows you this information?
10. Has the company taken on any additional long-term debt in July?
11. Which financial statement shows you this information?
What will be an ideal response?
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Q. 2) Jem's Jewelers reported total shareholders' equity of 100,000 on its February 28 balance sheet. During March, the business earned 250,000, and declared and paid a cash dividend of 10,000. What was total shareholders' equity on March 31?
A) 360,000
B) 350,000
C) 340,000
D) 260,000
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Q. 3) The account that would be credited for the amount of tax collected and paid on sales would be
a. Sales.
b. Sales Tax Payable.
c. Cash.
d. Accounts Payable.
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Q. 4) Inventory information for Great Falls Merchandising, Inc. is provided below. Sales for the period were 2,800 units for 8 each. The company uses a LIFO periodic inventory system.
Date Number of Units Unit Cost Total Cost
January 1 Beginning inventory 1,000 3.00 3,000
January Purchase 600 3.50 2,100
February Purchase 800 4.00 3,200
March Purchase 1,200 4.25 5,100
Totals 3,600 13,400
Determine the ending inventory at March 31.
A) 3,400
B) 2,400
C) 10,200
D) 800
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Q. 5) Periodic cleaning, testing, and adjusting of computer equipment is referred to as _____________________________
_.
Fill in the blank(s) with correct word
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Q. 6) Receipts from cash sales of 3,200 were recorded incorrectly in the cash receipts journal as 2,300 . This itemwould be included on the bank reconciliation as a(n)
a. deduction from the balance per company's records
b. addition to the balance per bank statement
c. deduction from the balance per bank statement
d. addition to the balance per company's records
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