BYP1-2 PepsiCo’s financial statements are presented in Appendix A. The Coca-Cola Company’s financial statements are presented in Appendix B. Comparative Analysis Problem

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Comparative Analysis Problem
PepsiCo, Inc. vs. The Coca-Cola Company
BYP1-2 PepsiCo’s financial statements are presented in Appendix A. The Coca-Cola Company’s financial statements are presented in Appendix B.

Instructions:
Refer to the financial statements and answer the following questions.
(a) Based on the information contained in these financial statements, determine the following for each company.
(1) Total assets at December 31, 2005, for PepsiCo, and for Coca-Cola at December 31, 2005.
(2) Accounts (notes) receivable, net at December 31, 2005, for PepsiCo and at December 31,
2005, for Coca-Cola.
(3) Net sales for year ended in 2005.
(4) Net income for year ended in 2005.

(b) What conclusions concerning the two companies can be drawn from these data?

BYP1-1 The actual financial statements of PepsiCo, as presented in the company’s 2005 Annual Report, are contained in Appendix A. Refer to PepsiCo’s financial statements and answer the following questions....

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Financial Reporting Problem : PepsiCo, Inc.
BYP1-1 The actual financial statements of PepsiCo, as presented in the company’s 2005 Annual Report, are contained in Appendix A (at the back of the textbook).

Instructions:
Refer to PepsiCo’s financial statements and answer the following questions.
(a) What were PepsiCo’s total assets at December 31, 2005? At December 25, 2004?
(b) How much cash (and cash equivalents) did PepsiCo have on December 31, 2005?
(c) What amount of accounts payable did PepsiCo report on December 31, 2005? On December
25, 2004?
(d) What were PepsiCo’s net sales in 2003? In 2004? In 2005?
(e) What is the amount of the change in PepsiCo’s net income from 2004 to 2005?

P1-5B Financial statement information about four different companies is as follows. McKane Comapny, Selara Company, Gordon Company, Hindi Company...

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P1-5B Financial statement information about four different companies is as follows.

Instructions:
(a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets − Liabilities = Stockholders’ Equity = $30,000.)
(b) Prepare the retained earnings statement for McKane Company. Assume beginning retainedearnings was $0.
(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and balance sheet.

P1-4B Laura Geller started a consulting firm, Geller Consulting, on May 1, 2008. The following transactions occurred during the month of May.

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P1-4B Laura Geller started a consulting firm, Geller Consulting, on May 1, 2008. The following transactions occurred during the month of May.

May:
1 Geller invested $8,000 cash in the business in exchange for stock.
2 Paid $800 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $50 to advertise in the County News.
9 Received $3,000 cash for services provided.
12 Paid a $700 cash dividend.
15 Performed $5,300 of services on account.
17 Paid $3,000 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $3,000 for services provided on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased office equipment for $2,800 on account.
30 Paid $150 for utilities.

Instructions:
(a) Show the effects of the previous transactions on the accounting equation using the following format.

Include explanations for any changes in the Retained Earnings account in your analysis.
(b) Prepare an income statement for the month of May.
(c) Prepare a balance sheet at May 31, 2008.

P1-3B Divine Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $26,200 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June

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P1-3B Divine Cosmetics Co., a company that provides individual skin care treatment, was started on June 1 with an investment of $26,200 cash. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June:

Cash $11,000
Notes Payable 13,000
Accounts Receivable 4,000
Accounts Payable 1,200
Service Revenue 6,000
Supplies Expense 1,600
Cosmetic Supplies 2,000
Gas and Oil Expense 800
Advertising Expense 500
Utilities Expense 300
Equipment 25,000

Stockholders made no additional investments in June. The company paid a cash dividend of $1,200 during the month.

Instructions:
(a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2008.
(b) Prepare an income statement and a retained earnings statement for June assuming the following data are not included above: (1) $800 of revenue was earned and billed but not collected at June 30, and (2) $100 of gas and oil expense was incurred but not paid.

P1-2B Cindy Belton opened a law office, Cindy Belton, Attorney at Law, on July 1, 2008. On July 31, the balance sheet showed Cash $4,000, Accounts Receivable $1,500, Supplies $500, Office Equipment $5,000, Accounts Payable $4,200, and Common Stock $6,000, and Retained Earnings $800. During August the following transactions occurred.

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P1-2B Cindy Belton opened a law office, Cindy Belton, Attorney at Law, on July 1, 2008. On July 31, the balance sheet showed Cash $4,000, Accounts Receivable $1,500, Supplies $500, Office Equipment $5,000, Accounts Payable $4,200, and Common Stock $6,000, and Retained Earnings $800. During August the following transactions occurred.

1. Collected $1,400 of accounts receivable.
2. Paid $2,700 cash on accounts payable.
3. Earned revenue of $9,000 of which $3,000 is collected in cash and the balance is due in September.
4. Purchased additional office equipment for $1,000, paying $400 in cash and the balance on account.
5. Paid salaries $3,000, rent for August $900, and advertising expenses $350.
6. Paid cash dividend of $750.
7. Received $2,000 from Standard Federal Bank—money borrowed on a note payable.
8. Incurred utility expenses for month on account $250.

Instructions:
(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Office Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings.
(b) Prepare an income statement for August, a retained earnings statement for August, and a balance sheet at August 31.

P1-1B On April 1, Jenny Russo established Matrix Travel Agency. The following transactionswere completed during the month.

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P1-1B On April 1, Jenny Russo established Matrix Travel Agency. The following transactionswere completed during the month.

1. Stockholders invested $10,000 cash in exchange for stock.
2. Paid $400 cash for April office rent.
3. Purchased office equipment for $2,500 cash.
4. Incurred $300 of advertising costs in the Chicago Tribune, on account.
5. Paid $600 cash for office supplies.
6. Earned $9,500 for services rendered: $3,000 cash is received from customers, and the balance
of $6,500 is billed to customers on account.
7. Paid $200 cash dividend.
8. Paid Chicago Tribune amount due in transaction 4.
9. Paid employees’ salaries $2,200.
10. Received $4,000 in cash from customers who have previously been billed in transaction 6.

Instructions
(a) Prepare a tabular analysis of the transactions using the following column headings: Cash,Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, and Retained Earnings.
(b) From an analysis of the column Retained Earnings, compute the net income or net loss for April.