Kamil’s Car Repair Shop Ltd. started the year with total assets of $70,000 and total liabilities of$

Kamil’s Car Repair Shop Ltd. started the year with total assets of $70,000 and total liabilities of$40,000. During the year, the business recorded $100,000 in car repair revenues, $65,000 inexpenses, and dividends of $5,000. Shareholders’ equity at the end of the year was$60,000.$65,000.$70,000.$75,000.Bayer AG, with headquarters in Leverkusen, Germany, is an international, research-based group ofcompanies active in health care, nutrition, and high-tech materials. Popular products include ASPIRIN,Alka-Seltzer, and One-A-Day vitamins. The following is Bayer’s (simplified) statement of financial positionas at September 30, 2012:BAYER AGStatement of Financial PositionAt September 30, 2012 (in millions of euros)Assets:Current assetsCash and cash equivalents€ReceivablesInventoriesOther assets3,1818,6446,5391,51419,878Non-current assets:InvestmentsProperty, plant, and equipmentIntangible assetsOther assets3199,48019,4772,76732,043Total assetsLiabilities and Shareholders’ EquityCurrent liabilities:Trade accounts payableFinancial liabilitiesProvisionsOther short-term liabilities€ 51,921€ 3,3973,7214,5931,50213,213Non-current liabilities:ProvisionsDeferred income taxesFinancial liabilitiesOther liabilities7,5242,4017,5212,25419,700Shareholders’ equity:Contributed capitalRetained earnings8,28410,72419,008Total liabilities and shareholders’ equity€ 51,921Assume that the following transactions occurred in the last quarter of 2012:a. Issued additional shares for €60 in cash.b. Borrowed €615 from banks due in two years.c. Declared and paid €1,160 in dividends to shareholders.d. Purchased additional intangibles for €64 cash.e. Purchased property, plant, and equipment; paid €1,514 in cash and €5,410 with additional long-termbank loans.f. Acquired additional investments; paid €623 in cash.g. Lent €125 to an associated company that signed a six-month note.h. Sold investments costing €461 for the same amount in cash.Required:1. Prepare a journal entry for each transaction. (If no entry is required for a transaction/event, select”No journal entry required” in the first account field. Enter your answers in millions.)2. Post the above entries in the below T-accounts for each financial statement account and include theSeptember 30, 2012, balances. Post each journal entry to the appropriate T-accounts. (Enter youranswers in millions.)3. Prepare a statement of financial position for Bayer based on the T-account ending balances atDecember 31, 2012.4-a Compute Bayer’s current ratio at December 31, 2012. (Round your answer to 2 decimal places.)The following are the summary account balances from a recent statement of financial position of ModernSportswear Inc. The accounts are followed by a list of transactions for the month of January 2015. Allamounts are shown in millions of dollars:CashLong-term borrowingsTrade receivablesInventoriesDeferred income taxes (credit)Property and equipment, net$6352,2291,5035512,51810,759Trade payablesIncome tax payablePrepaymentsRetained earningsOther non-current assetsShare capital$1,822300164,2661,1263,455The accounts have normal debit or credit balances, but they are not necessarily listed in good order.The following additional information is also available:a. Purchased new equipment costing $150 by issuing long-term debt.b. Received $900 on trade receivables.c. Received and paid the telephone bills for $1.d. Earned $500 in sales to customers on account; the cost of sales was $300..e. Paid employees $100 for wages earned in January.f. Paid half of the income taxes payable.g. Purchased inventory for $223 on account.h. Prepaid rent for February for a warehouse for $12.i. Paid $10 of long-term borrowings and $1 in interest on the debt.j. Purchased a patent (an intangible asset) for $8 cash.Required:1&2. Post the above transactions in to the appropriate T-accounts. (Enter your answers in millions.)3. Show the effects of each transaction on net earnings and cash. (Enter any decreases to accountbalances with a minus sign. Enter your answers in millions.)4-a. Prepare a statement of earnings for the month of January 2015. (Enter your answers in millions.)4-b. Prepare a classified statement of financial position as at January 31, 2015. (Enter your answers inmillions.)5. Prepare the operating activities section of the statement of cash flows for January 2015. (Negativeamounts/Cash outflows should be entered with a minus sign. Enter your answers in millions.)6. Compute the company’s total asset turnover ratio. (Round your answer to 3 decimal places.)Mitakis Inc., a small service repair company, keeps its records without the help of an accountant. Aftermuch effort, an outside accountant prepared the following unadjusted trial balance as at the end of thecompany’s fiscal year, December 31, 2015:Account TitlesCashTrade receivablesSupplies inventoryPrepaid insuranceEquipment (five-year life, no residual value)Accumulated depreciation, equipmentOther assetsTrade payablesNote payable (two years; 7% each December 31)Contributed capital (4,000 shares)Retained earningsService revenueOther expenses, excluding income taxTotals$Debit19,6007,0001,30090027,000Credit$12,0005,1002,5005,00016,00010,30048,00032,900$93,800$93,800Data not yet recorded at December 31, 2015, include the following:a. Depreciation expense for 2015, $3,000.b. Insurance expired during 2015, $450.c. Wages earned by employees not yet paid on December 31, 2015, $1,100.d. Supplies inventory on December 31, 2015, reflecting $600 remaining on hand.e. Income tax expense, $2,950.Required:1. Prepare the adjusting entries at December 31, 2015. (If no entry is required for atransaction/event, select “No journal entry required” in the first account field.)2. Show the effects of the adjusting entries on net earnings and cash. (If there is no cash flow effect,select “None”. Enter any decreases to account balances with a minus sign.)3-a. Prepare a statement of earnings for 2015. (Round your Earnings per share to 2 decimal places.)3-b. Prepare a statement of financial position at December 31, 2015.4. Compute the net earnings for the year, assuming that you did not make an adjustment to the balanceof the supplies inventory account.5. Prepare the closing entries at December 31, 2015. (If no entry is required for a transaction/event,select “No journal entry required” in the first account field.)