At January 1 (beginning of Its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses office equipment a. Received $14,100 cash for consulting services rendered. b. Issued 56 additional shares of common stock at a market price of $143 per share. c. Purchased $1,100 of office equipment, paying 25 percent In cash and owing the rest on a short-term note. d. Received $1,120 from clients for consulting services to be performed in the next year. FREEMAN, INCORPORATED Income Statement (unadjusted) For the Year Ended December 31 Operating revenues: $2,360 640 4,260 380 5,640 1,740 e. Bought $930 of supplies on account. f. Incurred and paid $2,490 In utilities for the current year. g. Consulted for clients in the current year for fees totaling $2,080, due from clients in the next year. Consulting fees revenue h. Received $3,640 from clients paying on their accounts. 1. Incurred $6,670 in salaries in the current year, paying $5,990 and owing the rest (to be paid next year). J. Purchased $1,690 In short-term Investments and paid $1,030 for Insurance coverage beginning in the next fiscal year. k. Received $33 in Interest revenue earned in the current year on short-term Investments. Total operating revenues Accounts payable Unearned revenue salaries payable Short-term note payable Required: Prepare an unadjusted classified Income statement for the current year ended December 31. (Ignore Income taxes.) Note: Enter your answers in thousands, not in dollars. Operating expenses: Common stock ($1 par value) Additional paid-in capital Retained earnings Total operating expenses Other item: $440 1,780 1,330 1,010 73 7,687 2,700 S 16,180 16,180 Prov 19 of 21 Next >
At January 1 (beginning of Its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): Cash Short-term investments Accounts receivable Supplies Prepaid expenses office equipment a. Received $14,100 cash for consulting services rendered. b. Issued 56 additional shares of common stock at a market price of $143 per share. c. Purchased $1,100 of office equipment, paying 25 percent In cash and owing the rest on a short-term note. d. Received $1,120 from clients for consulting services to be performed in the next year. FREEMAN, INCORPORATED Income Statement (unadjusted) For the Year Ended December 31 Operating revenues: $2,360 640 4,260 380 5,640 1,740 e. Bought $930 of supplies on account. f. Incurred and paid $2,490 In utilities for the current year. g. Consulted for clients in the current year for fees totaling $2,080, due from clients in the next year. Consulting fees revenue h. Received $3,640 from clients paying on their accounts. 1. Incurred $6,670 in salaries in the current year, paying $5,990 and owing the rest (to be paid next year). J. Purchased $1,690 In short-term Investments and paid $1,030 for Insurance coverage beginning in the next fiscal year. k. Received $33 in Interest revenue earned in the current year on short-term Investments. Total operating revenues Accounts payable Unearned revenue salaries payable Short-term note payable Required: Prepare an unadjusted classified Income statement for the current year ended December 31. (Ignore Income taxes.) Note: Enter your answers in thousands, not in dollars. Operating expenses: Common stock ($1 par value) Additional paid-in capital Retained earnings Total operating expenses Other item: $440 1,780 1,330 1,010 73 7,687 2,700 S 16,180 16,180 Prov 19 of 21 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:At January 1 (beginning of Its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account
balances (in thousands, except for par and market value per share):
Cash
Short-term investments
Accounts receivable
Supplies
Prepaid expenses
office equipment
a. Received $14,100 cash for consulting services rendered.
b. Issued 56 additional shares of common stock at a market price of $143 per share.
c. Purchased $1,100 of office equipment, paying 25 percent In cash and owing the rest on a short-term note.
d. Received $1,120 from clients for consulting services to be performed in the next year.
FREEMAN, INCORPORATED
Income Statement (unadjusted)
For the Year Ended December 31
Operating revenues:
$2,360
640
4,260
380
5,640
1,740
e. Bought $930 of supplies on account.
f. Incurred and paid $2,490 In utilities for the current year.
g. Consulted for clients in the current year for fees totaling $2,080, due from clients in the next year.
Consulting fees revenue
h. Received $3,640 from clients paying on their accounts.
1. Incurred $6,670 in salaries in the current year, paying $5,990 and owing the rest (to be paid next year).
J. Purchased $1,690 In short-term Investments and paid $1,030 for Insurance coverage beginning in the next fiscal year.
k. Received $33 in Interest revenue earned in the current year on short-term Investments.
Total operating revenues
Accounts payable
Unearned revenue
salaries payable
Short-term note payable
Required:
Prepare an unadjusted classified Income statement for the current year ended December 31. (Ignore Income taxes.)
Note: Enter your answers in thousands, not in dollars.
Operating expenses:
Common stock ($1 par value)
Additional paid-in capital
Retained earnings
Total operating expenses
Other item:
$440
1,780
1,330
1,010
73
7,687
2,700
S 16,180
16,180
Prov
19 of 21
Next >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education