esOn December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,390 in assets inexchange for its common stock to launch the business. On December 31, the company's records show the following itemsand amounts.Cash$ 13,210Cash dividendsAccounts receivable13,320Consulting revenueOffice supplies2,720Rent expenseOffice equipmentLand17,350Salaries expense45,910 Telephone expenseAccounts payableCommon stock7,970 Miscellaneous expenses83,390$ 1,46013,3202,9506,290830640Use the above information to prepare a December 31 balance sheet for Ernst Consulting.ERNST CONSULTINGBalance Sheet

Step 1: Preparation of income statement.ERNST CONSULTINGIncome statementFor the month ended December…

Answered: es On December 1, Jasmin Ernst…

College Accounting, Chapters 1-27

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Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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Problem 2CE

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Rodgers Company compiled the following financial information as of December 31, 20XX:Sales revenue $1,120,000Common stock 240,000Buildings 320,000Operating expenses 1,000,000Cash 280,000Dividends 80,000Inventory 40,000Accounts payable 160,000Accounts receivable 120,000Retained earnings, 1/1/20XX 600,000Rodger’s assets on December 31, 20XX area. $1,880,000.b. $1,360,000.c. $640,000.d. $760,000.
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On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:Cash . . . . . . . . . . . . . . . . . . $150,000 Accounts receivable . . . . . . . . .180,000Capitalized software costs . . . 320,000Goodwill . . . . . . . . . . . . . . . . . 100,000Liabilities . . . . . . . . . . . . .. . . (130,000)Net assets . . . . . . . . . . . . .. . $620,000 On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
Hancock Company reported the following account balancesat December 31, 2027:Sales revenue $97,000Dividends. $11,000Supplies 13,000Accounts payable 41,000Patent $59,000Building Common stock.. $27,000Insurance expense .... $31,000Notes payable .. $39,000Income tax expense $42,000Cash . . $19,000Repair expense ?Copyright $20,000Equipment $14,000Utilities payable. $22,000Inventory $64,000Retained earnings. .. $87,000 (at Jan. 1, 2027)Interest revenue $55,000Cost of goods sold ..... .. $37,000Accumulated depreciation .... $23,000 $34,000Accounts receivable ? Trademark. ... $51,000Calculate the total intangible assets reported in HancockCompany's December 31, 2027 balance sheet. The following additional information is available:1) The note payable listed above was a 4- year bank loan taken out on September 1, 2024.2) The total P - P - E at Dec. 31, 2027 was equal to 75% of the total current liabilities at Dec. 31, 2027. ՄԴ S
The following are selected account balances of Rule Corporation at the end of the current year: Debit Credit Operating Expenses $3,200 Sales Revenue $17,780 Cost of Goods Sold 8,500 Interest Expense 790 Gain on Sale of Land 590 Rule is subject to a 30% income tax rate, and shareholders own 1,200 shares of its capital stock. Required: Prepare the income statement for Rule. RULE CORPORATION Income Statement For the Year Ended December 31, Current Year Other items: Earnings per share
Freiman Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 170 $ 130 Accounts receivable, net 245 265 Inventory 130 140 Prepaid expenses 45 45 Total current assets 590 580 Plant and equipment, net 750 750 Total assets $ 1,340 $ 1,330 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 140 $ 160 Accrued liabilities 95 95 Notes payable, short term 65 75 Total current liabilities 300 330 Bonds payable 295 305 Total liabilities 595 635 Stockholders' equity: Common stock, $2 par value 110 110 Additional paid-in capital 225 225 Retained earnings 410 360 Total stockholders' equity 745 695 Total liabilities & stockholders' equity $ 1,340 $ 1,330 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all…
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 210 $ 310 Accounts receivable, net 340 360 Inventory 310 280 Prepaid expenses 20 20 Total current assets 880 970 Plant and equipment, net 1,120 1,220 Total assets $ 2,000 $ 2,190 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 280 $ 310 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 370 400 Bonds payable 270 440 Total liabilities 640 840 Stockholders’ equity: Common stock, $2 par value 200 200 Additional paid-in capital 330 330 Retained earnings 830 820 Total stockholders’ equity 1,360 1,350 Total liabilities & stockholders’ equity $ 2,000 $ 2,190 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars)…
The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $295,200 $218,900 Temporary investments 315,000 239,800 Accounts and notes receivable (net) 289,800 261,300 Inventories 405,000 324,000 Prepaid expenses 345,000 126,000 Total current assets $1,650,000 $1,170,000 Accounts payable $290,000 $315,000 Accrued liabilities 210,000 135,000 Total current liabilities $500,000 $450,000
On June 1, Cline Co. paid $1,098,500 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow: Cash $ 223,000 Accounts receivable 232,500 Capitalized software costs 362,000 Goodwill 182,000 Liabilities (137,000 ) Net assets $ 862,500 On June 1, Renn’s accounts receivable had a fair value of $189,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $288,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2024: Account Gibson Davis Sales $ (731,000) $ (444,000) Cost of goods sold 334,000 197,000 Operating expenses 256,000 67,000 Dividend income (12,000) 0 Net income $ (153,000) $ (180,000) Retained earnings, 1/1/24 $ (711,000) $ (487,000) Net income (153,000) (180,000) Dividends declared 60,000 20,000 Retained earnings, 12/31/24 $ (804,000) $ (647,000) Cash and receivables $ 120,000 $ 230,000 Inventory 521,000 251,000 Investment in Davis 603,000 0 Buildings (net) 590,000 614,000 Equipment (net) 410,000 444,000 Total assets $ 2,244,000 $ 1,539,000 Liabilities $ (810,000) $ (552,000) Common stock (630,000) (340,000) Retained earnings, 12/31/24 (804,000) (647,000) Total liabilities and stockholders' equity $ (2,244,000) $ (1,539,000) Gibson acquired 60 percent of Davis on April 1, 2024, for $603,000. On that date, equipment owned by Davis…
Following are the income statement and balance sheet items for Faison Corporation from the company’s books and records at the end of fiscal year-end 20x1: ($ millions) Contributed capital $1,702 Cost of sales 13,567 Cash 1,393 Long-term liabilities 3,719 Accounts receivable 2,662 Other current assets 604 Other long-term assets 2,079 Other current liabilities 1,299 Other operating expenses 1,212 Other non-operating expenses 161 Inventory 1,093 Accounts payable 2,595 Property, net 3,216 Retained earnings 1,209 Sales 16,463 Tax expense 256 Equity income, net of tax 34 Other equity 523 Required: Using the information above, prepare the company’s year-end income statement and a balance sheet.
Waddle company had the following balances in its accounting records as of December 31st, year 1.

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