general accounting question Blue Sky Company had the following transactions during 2023, its first year of operations:1. Issued common stock for $1,2002. Obtained bank loan of $5003. Earned revenues of $8004. Paid expenses of $3005. Paid dividends of $75During 2024:1. Issued additional stock for $4002. Repaid $250 of bank loan3. Earned revenues of $9004. Paid expenses of $4505. Paid dividends of $125What is Blue Sky's retained earnings balance before closing in 2023?A. $425B. $500C. $800D. None of the above

Step 1: Define Retained EarningsRetained earnings represent the cumulative amount of net income…

Answered: Blue Sky Company had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

XYZ Corp. reported the following activity and balance sheet data for fiscal 2019: • The company declared cash dividends of $90. • The company issued bonds to raise cash in order to redeem bonds with a face value of $300 and to raise additional capital for expansion. • The company raised cash by issuing 50 shares of stock. • The company purchased treasury shares at a cost of $90. • Fiscal 2019 net income was $220. Dividends Payable Bonds Payable Common Stock, $1 Paid In Capital Retained Earnings Treasury Stock 12/31/19 30 1,700 550 1,770 1,670 140 1/1/19 20 1,500 500 1,350 1,540 50 Cash flow from/used in financing activities was: Enter a positive number for a cash inflow or a negative number for a cash outflow.
On January 1 2020 the Happy Corporation had a credit balance in the retained earnings account of $1,000,000. During 2020 the following occurred: 1. Net income for the year was $500,000. 2. It was discovered the 2019 net income was understated by $100,000. 3. The following dividends were declared: On preferred stock... $ 120,000 On common stock: Cash dividends. 20,000(only 15,000 paid in 2021) Stock dividends.. 60,000 Instructions: On the worksheet provided, prepare a retained earnings statement in good form.
Could you please calculate a1 and a2. I was able to calculate $910,000 for the retained earnings as a credit. I could not get the correct answer for the remainder of A1 and A2. Thank you.
Please help me with this (:
At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $54,400 Accounts payable $15,600 Supplies 12,700 Utilities payable 6,000 Prepaid rent 33,000 Salaries payable 5,300 Land 290,000 Notes payable 33,000 Required: Prepare a statement of stockholders’ equity.
At the beginning of 2024, Ellingham Academy reported a balance in common stock of $164,000 and a balance in retained earnings of $64,000. During the year, the company issued additional shares of stock for $54,000, earned net income of $44,000, and paid dividends of $11,400. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $54,000 Accounts payable $13,600 Supplies 12,300 Utilities payable 5,200 Prepaid rent 31,000 Salaries payable 4,900 Land 270,000 Notes payable 29,000 Required: Prepare a statement of stockholders' equity. Prepare a balance sheet.
At the beginning of 2024, Glasson Academy reported a balance in common stock of $166,000 and a balance in retained earnings of $66,000. During the year, the company issued additional shares of stock for $56,000, earned net income of $46,000, and paid dividends of $11,600. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $54,200 Accounts payable $14,600 Supplies 12,500 Utilities payable 5,600 Prepaid rent 32,000 Salaries payable 5,100 Land 280,000 Notes payable 31,000 Required: Prepare a statement of stockholders’ equity. Prepare a balance sheet.
Sheridan Company started the year with $50400 in its Common Stock account and a credit balance in Retained Earnings of $37000. During the year, the company earned net income of $40300, and declared and paid $16800 of dividends. In addition, the company sold additional common stock amounting to $23500. The amount reported for ending retained earnings on the retained earnings statement would be O $110900. O $84000 O $60500. O $134400
Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $368,000 cash. 2. Borrowed $57,000 from the bank for a five-year term. 3. Purchased equipment for $206,000 cash. 4. Purchased supplies, on account, for $6,500. 5. Sales on account amounted to $101,000. 6. Collected $86,000 from customers for services provided. 7. Paid wages of $35,000 to employees. 8. Paid $24,500 for utilities (telephone, electricity, heat, & water). For Sunshine Company, the following adjustments are required prior to them being able to prepare financial statements for the year ended December 31, 2020. 1. The bank loan was taken out on January 1st and has an interest rate of 9%. Interest is due January 1st of the following year. 2. The equipment was purchased on January 1st and has an estimated useful life of 10 years and a residual value of $13,500. The company uses the straight-line depreciation…
Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 69,000 Marketable securities $ 25,900 Accounts receivable, net $ 347,600 Inventory $ 457,400 Prepaid expenses $ 7,800 Accounts payable $ 198,200 Notes due within one year $ 98,000 Accrued liabilities $ 59,100 During the year, Denna Company completed the following transactions: Paid a cash dividend previously declared, $29,000. Issued additional shares of common stock for cash, $198,000. Sold inventory costing $69,200 for $99,000, on account. Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $29,000. Paid accounts payable, $98,400. Borrowed cash on a short-term note with the bank, $58,500. Sold inventory costing $19,800 for $13,200 cash. Purchased inventory on account, $49,250. Paid off all short-term notes due, $156,500. Purchased equipment for cash, $74,200. Sold marketable securities…
Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 69,000 Marketable securities $ 25,900 Accounts receivable, net $ 347,600 Inventory $ 457,400 Prepaid expenses $ 7,800 Accounts payable $ 198,200 Notes due within one year $ 98,000 Accrued liabilities $ 59,100 During the year, Denna Company completed the following transactions: Paid a cash dividend previously declared, $29,000. Issued additional shares of common stock for cash, $198,000. Sold inventory costing $69,200 for $99,000, on account. Wrote off uncollectible accounts in the amount of $9,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $29,000. Paid accounts payable, $98,400. Borrowed cash on a short-term note with the bank, $58,500. Sold inventory costing $19,800 for $13,200 cash. Purchased inventory on account, $49,250. Paid off all short-term notes due, $156,500. Purchased equipment for cash, $74,200. Sold marketable securities…
Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 64,000 Marketable securities $ 27,400 Accounts receivable, net $ 335,600 Inventory $ 444,400 Prepaid expenses $ 6,800 Accounts payable $ 189,200 Notes due within one year $ 88,000 Accrued liabilities $ 54,600 During the year, Denna Company completed the following transactions: Ex. Paid a cash dividend previously declared, $24,000. Issued additional shares of common stock for cash, $188,000. Sold inventory costing $65,200 for $94,000, on account. Wrote off uncollectible accounts in the amount of $7,600, reducing the accounts receivable balance accordingly. Declared a cash dividend, $24,000. Paid accounts payable, $90,400. Borrowed cash on a short-term note with the bank, $51,000. Sold inventory costing $21,300 for $14,200 cash. Purchased inventory on account, $45,500. Paid off all short-term notes due, $139,000. Purchased equipment for cash, $70,200. Sold…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS