Johnson company is a manufacturing company. Its balance sheet for the year endin
ID: 2344170 • Letter: J
Question
Johnson company is a manufacturing company. Its balance sheet for the year ending December 31, 2010, is presented below.
Johnson company.
Balance Sheet
Year Ending December 31st, 2010
Cash
$20,000
Accounts Payable
$ 6,800
Short-term Investments
4,000
Long-term Debt
80,000
Accounts Receivable
50,000
Total Liabilities
$86,800
Raw Materials Inventory
7,200
Common Stock - $10 par
$75,000
*Finished Goods Inven.
20,600
Additional Paid-in Capital
15,000
Equipment
120,000
Retained Earnings
33,000
Accumulated Depreciation
(12,000)
Total Shareholders
Cash
$20,000
Accounts Payable
$ 6,800
Short-term Investments
4,000
Long-term Debt
80,000
Accounts Receivable
50,000
Total Liabilities
$86,800
Raw Materials Inventory
7,200
Common Stock - $10 par
$75,000
*Finished Goods Inven.
20,600
Additional Paid-in Capital
15,000
Equipment
120,000
Retained Earnings
33,000
Accumulated Depreciation
(12,000)
Total Shareholders
Explanation / Answer
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. In contrast to financial accountancy information, management accounting information is: primarily forward-looking, instead of historical; model based with a degree of abstraction to support decision making generically, instead of case based; designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators;
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