Accounting Misha Gash, Incorporated Post-Closing Trial Balances Homework Help

Accounting Misha Gash, Incorporated Post-Closing Trial Balances

Misha Gash, Incorporated Post-Closing Trial Balances December 31, 2014 December 31, 2013 Debit Credit Debit Credit Cash 30,500 72,000 Short-term Investments 12,200 57,200 Accounts Receivable 104,600 25,400 Supplies 11,500 5,600 Merchandise Inventory 97,500 35,200 Prepaid Rent 4,000 12,000 Prepaid Insurance 2,700 2,300 Notes Receivable (due in 3 yrs.) 30,000 12,500 Delivery Equipment 40,300 25,800 Accumulated Depreciation 12,200 7,400 Office Building 245,000 245,000 Accumulated Depreciation 130,000 120,000 Trademarks 8,700 8,700 Accounts Payable 57,600 25,200 Notes Payable (due within 1 year) 76,400 27,100 Notes Payable (due in 5 years) 125,000 30,800 Deferred Revenue 10,300 25,600 Common Stock 20,000 20,000 Retained Earnings 155,500 245,600 $587,000 $587,000 $501,700 $501,700 AIDitional Information: 1. The company has begun a strategy in 2014 to increase sales by dramatically lowering prices and being certain to have inventory available when needed. Sales in 2013 were $850,000 and $1,120,000 in 2014 2. Misha Gash has never paid a dividend. REQUIRED: 1. Prepare in good form, comparative classified balance sheets for 2014 and 2013 (Be certain to show the change in each account.) 2. Discuss the change in Misha Gash’s financial position from 2013. Use whatever ratios you feel are appropriate to support your assessment. 3. Do you think this strategic change was a good idea?