Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 4,700 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,650; December 31, current year, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $73,500; December 31, current year, amounts owed to publishers for books purchased, $12,600; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation (Beginning Retained Earnings + Net Income - Dividends Ending Retained Earnings] to solve for net income.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Required 1
Required 2
What was the amount of net income for the year
Net Income - Dividends= Ending Retained Earn
Amount of net income
Transcribed Image Text:Required 1 Required 2 What was the amount of net income for the year Net Income - Dividends= Ending Retained Earn Amount of net income
Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the
business and received 4,700 shares of common stock. The store completed its first year of operations on December 31, current year.
On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank,
$69,650; December 31, current year, amounts due from customers from sales of books, $39,500; unused portion of store and office
equipment, $73,500: December 31, current year, amounts owed to publishers for books purchased, $12,600; one-year note payable to
a local bank for $3,800. No dividends were declared or paid to the stockholders during the year.
Required:
1. Complete the following balance sheet as of the end of the current year. Some information has been given below.
2. What was the amount of net income for the year? (Hint: Use the retained earnings equation (Beginning Retained Earnings + Net
Income - Dividends Ending Retained Earnings] to solve for net income.)
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Complete the following balance sheet as of the end of the current year. Some information has been given below.
COLE VALLEY BOOK STORE
Balance Sheet
Assets
Cash
Accounts receivable
Store and office equipment
Total assets
Required 1
Accounts payable
Note payable
Interest payable
Total liabilities
Liabilities
Stockholders' Equity
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
Required 2 >
150
22,900
Transcribed Image Text:Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 4,700 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,650; December 31, current year, amounts due from customers from sales of books, $39,500; unused portion of store and office equipment, $73,500: December 31, current year, amounts owed to publishers for books purchased, $12,600; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required: 1. Complete the following balance sheet as of the end of the current year. Some information has been given below. 2. What was the amount of net income for the year? (Hint: Use the retained earnings equation (Beginning Retained Earnings + Net Income - Dividends Ending Retained Earnings] to solve for net income.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following balance sheet as of the end of the current year. Some information has been given below. COLE VALLEY BOOK STORE Balance Sheet Assets Cash Accounts receivable Store and office equipment Total assets Required 1 Accounts payable Note payable Interest payable Total liabilities Liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required 2 > 150 22,900
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Knowledge Booster
S Corporations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education