Different elements of the financial statements.

  Critically understand the different elements of the financial statements. Knowing how to record business transactions on the General Journal Knowing how to prepare a trial balance Exercise 1: Calculate the missing retained earnings (X) and inventory (Y) accounts in the following cases: (20 points) Balance Sheet A: Assets Liabilities Cash 28000 Accounts payable 65000 Accounts receivable 65000 Notes payable 128000 Land 50000 Salaries payable 23000 Building 300000 Taxes payable 49000 Office Equipement 24000 Vehicles 32000 Stockholders equity Inventory 125000 Capital stock Retained earnings 200000 (X) Balance Sheet B: Assets Liabilities Cash 30500 Accounts payable 43000 Accounts receivable 12700 Notes payable 23000 Land 50000 Salaries payable 12000 Building 260000 Taxes payable 75000 Office Equipement 2300 Vehicles 24000 Stockholders equity Inventory (Y) Capital stock 150000 Retained earnings 207000 Exercise 2: A. Prepare the Balance Sheet based on the information supplied below: (30 points) Inventory 15000 Loans 40000 Bank Accounts 6000 Accounts payable 12000 Land 60000 Owners' Capital 35000 Cash 500 Equipments 7000 Retained earnings 55000 Salaries payable 7000 Building 65000 Accounts receivable 22000 Accumulated depreciation 4500 Line of credit 20000 Bonds payable 8000 Vehicles 6000 B. Compute the Accounting Metrics and comment the results. (20 points) Exercise 3: Brandon has recently decided to open his new business of retail of toys in a store located in the center of Barcelona. During the month of April 2021, Brandon’s new company BONCO, Ltd. realized the following transactions: 2nd of April: BONCO, Ltd issued to Brandon 100,000 shares in exchange of $350,000 of share capital. 3rd of April: BONCO, Ltd purchased a shop for $250,000. The price of the land is $100,000 and the building $150,000. BONCO, Ltd has signed a mortgage with a bank. 4th of April: BONCO, Ltd purchased furniture to FURNISH YOUR SHOP, Inc. for $35,000. 5th of April: BONCO, Ltd purchased merchandises on account to BIGUP, Inc for $28,000. 6th of April: BONCO, Ltd makes some installations in the shop for $7,500 paid in cash. 7th of April: BONCO, Ltd hires two employees with a salary $1,500/ month each. Salaries are paid on the last day of the month. 8th of April: BONCO, Ltd purchases little gifts to be offered to clients during the first week of activity for $1,500, paid in cash. 16th of April, BONCO, Ltd purchases merchandises to ONSTYLE, Ltd on account for $41,000. 22nd of April, BONCO, Ltd receives an electricity bill for $900 payable in May. 29th of April: BONCO, Ltd pays the accounts payable to FURNISH YOUR SHOP, Inc. 30th of April: BONCO, Ltd records the sales of the month of April that amount to $126,000. All sales have been paid in cash. Record the transactions of the company on the General Journal using the Double-Entry method (30 points) Rubrics Overall Grade Descriptor 90-100 The student demonstrates an excellent understanding of the concepts. 80-89 The student demonstrates a good understanding of the concepts. 70-79 The student demonstrates a fair understanding of the concepts. 60-69 The student demonstrates some, but insufficient understanding of the concepts. 30-59 The student demonstrates insufficient understanding of the concepts. They may mention some relevant ideas or concepts, although the relationship between them is not understood by the student. 1-29 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts. 0 The student leaves the questions blank or cheats. Points are stated at the end of each question.