Financial Accounting 2nd Assignment
方钧同 2021011783 fangjt21@mails.tsinghua.com
Multiple-choice questions from p81
1.D
2.D
3.A
4.A
5.B
6.C
7.A
8.D
9.B
10.D
M2-5
(1) SE
(2) NCA
(3) CL
(4) CL
(5) NCA
(6) NCA
(7) NCL
(8) CL
(9) CA
(10) CA
(11) CA
(12) SE
(13) CL
M2-10
Cash
Debit
Credit
Beg. bal.
900
10,000
b
a
30,000
5,000
d
c
500
16,400
Notes Receivable
Debit
Credit
Beg. bal.
1,000
b
10,000
11,000
Equipment
Debit
Credit
Beg. bal.
15,100
d
15,000
30,100
Notes Payable
Debit
Credit
3,000
Beg. bal.
30,000
a
10,000
d
43,000
Dividends Payable
Debit
Credit
0
Beg. bal.
2,000
e
2,000
Common Stock
Debit
Credit
1,000
Beg. bal.
10
c
1,010
Additional Paid-in Capital
Debit
Credit
3,000
Beg. bal.
490
c
3,490
Retained Earnings
Debit
e
Credit
2,000
10,000
Beg. bal.
8,000
M2-11
JonesSpa Corporation -- Trial Balance
January 31
Debit
Cash
16,400
Notes Receivable
11,000
Equipment
30,100
Credit
Notes Payable
43,000
Dividends Payable
2,000
Common Stock
1,010
Additional Paid-in Capital
3,490
Retained Earnings
8,000
Total
57,500
57,500
E2-14
Journal Entries
Debit
(a) Cash(+A)
202
Credit
Common Stock(+SE)
8
Additional Paid-in Capital(+SE)
194
(b) Not a transaction. The company hasn't receive the equipment yet.
(c) Cash(+A)
1,419
Notes Receivable(-A)
(d) Cash(+A)
1,419
4,291
Long-term Notes Payable(+L)
(f) Equipment(+A)
4,291
6,540
Cash(-A)
(g) Treasury Stock(+SE)
6,540
4,846
Cash(-A)
(h) Notes Payable(-L)
4,846
4,377
Cash(-A)
4,377
Short Answer
These are the top 5 firms with the highest ratios. All of them has a feature that the current assets
account for a large proportion of th total assets. Another point is that their stockholders' equities
are exrtremely, which is at least 10 times more than their liabilities. As 4 out of them are
biopharmaceutical companies, and 2021 is when COVID -19 is at is peak in China, so a possile
explanation could be that those companies raised more money than usual times due to people's
conscious worries about virus. The rest one is a emerging technology companies which mainly
sells dornes and robots. These are also popular industries then and can be expained in the same
way.
These are the bottom 5 firms with the lowest ratios. According to online infromation, those firms
were all faced with operational inefficiencies, some of which even delisted. 600139 Most of them
have a negative stockholders' equity, which means they have serious trouble in running and was
burdened with high liabilities. They may encountered a problem of funding chain rupture.