IEMANAC PROBLEM SET Problem 1 : May Corporation Following are the accounts of May Corp.

as of May 31, 1995: Amount in (000) P 2,839 P 7,266 P 658 P 52,000 P 1,768 P 2,795 P 195,000 P 130,000 P 11,661 P 4,420 P 29,900 P 9,945 P 3,900 P 1,619 P 817 P 1,033 P 73,822 P 1,853 P 1,898

Accounts Payable Accounts Receivable Accrued Wages Payable Accumulated Depreciation on Bldg. Accumulated Depreciation on Eqpt. Bank Notes Payable Building Capital Stock Cash Equipment (at cost) Land Merchandise Inventory Note Receivable Other Assets Other Liabilities Prepaid Insurance Retained Earnings Supplies on Hand Taxes Payable

Reqd: 1. Prepare the balance sheet of May Corp. as of May 31, 1995. Use proper format. 2. If you are going to buy May Corp., how much is the fair price? Problem 2: Campus Pizzeria Meredith Snelson started Campus Pizzeria, Inc. on August 1, 1998. Transactions for August are: 1. Snelson invested $5000 in the business as owner. 2. The firm paid $750 rent for the month of August. 3. The firm borrowed $4000 from a bank on a 3% note payable, with interest payable monthly and the principal to be paid in full at the end of 2 years. 4. Equipment costing $7200 was purchased for cash. The expected life of the equipment was 10 years. 5. An initial inventory of pizza ingredients and boxes was purchased on credit for $6550. 6. Pizzerias employees were paid $3000 in wages. 7. Pizza sales for August were $12000, all for cash. 8. Sales in August consumed $6000 worth of ingredients and boxes.