Pro Series Corporation has requested that you perform a vertical analysis of its balance sheet. Each item listed must be part of your analysis.
- Pro Series Corporation
- Balance Sheet
- December 31, 2005
Assets
- Current assets 42,000
- Plant, Property, & Equip. 247,000
- Other assets 35,000
- Total Assets 324,000
Liabilities & Stockholders' Equity
- Current liabilities 48,000
- Long-term debt 108,000
- Total Liabilities 156,000
- Total Stockholders' Equity 168,000
- Total Liabilities &
- Stockholders' Equity 324,000
An inexperienced accountant for Duran Corporation made the following entries.
July 1 Cash170000
Common Stock170000
Sept. 1 Common Stock336000
Retained Earnings24000
Cash60000
Instructions: On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions.