Felix Company had the following balances in its accounting records as of December 31, Year 1¹: $ Event No. Beg. Bal. Jan. 1 Mar. 1 Apr. 1 May 1 Sept. 1 The following accounting events apply to Felix Company's Year 2 fiscal year: 1 Acquired cash from the issue of common stock. 1 Made a cash payment on accounts payable. 1 Paid a cash dividend to the stockholders. Purchased additional land with cash. ...…. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Assets Cash Accounts Receivable Land Totals Total Jan. Mar. Apr. May Sept Dec. Cash 31 31 31 + 1 1 48,000 + 45,000 + (7,000) + (10,000) + (25,000) + 60,000 + + 55.000 + + + 166,000 + Assets Sold land for cash. Earned service revenue on account during the year. Received cash collections from accounts receivable. Incurred operating expenses on account during the year. Accounts Receivable 21,000 + + + + + + 80,000 + (55,000) + + + + 48,000 21,000 60,000 $ 129,000 46,000 + Land 60,000 Balance Sheet = = = = Liabilities & Stockholders' Equity Accounts Payable Common Stock Retained Earnings Total = 25,000 = (60,000) = = = = = 25,000 = Accounts Payable 17,500 + + (7,000) + + + 34.000 + 44,500 Felix Company Horizontal Financial Statements Model for Year 2 + + + + + + Common Stock 80,000 45.000 125,000 + + + + + + + T + T + + + $ + $ 17,500 80,000 31,500 129,000 Event Amount $ 45,000 7,000 10,000 25,000 60,000 80,000 55,000 34,000 Retained Earnings 31,500 (10,000) 80,000 101,500 Revenue 80,000 Income Statement Expense 34,000 = = = = = = = = = Net Income 80,000 Statement of Cash Flows 45,000 (7,000) (10,000) (25.000) 60,000 80,000 55.000 ILLLLLL FA OA OA IA ΤΑ OA OA
Felix Company had the following balances in its accounting records as of December 31, Year 1¹: $ Event No. Beg. Bal. Jan. 1 Mar. 1 Apr. 1 May 1 Sept. 1 The following accounting events apply to Felix Company's Year 2 fiscal year: 1 Acquired cash from the issue of common stock. 1 Made a cash payment on accounts payable. 1 Paid a cash dividend to the stockholders. Purchased additional land with cash. ...…. Dec. 31 Dec. 31 Dec. 31 Dec. 31 Assets Cash Accounts Receivable Land Totals Total Jan. Mar. Apr. May Sept Dec. Cash 31 31 31 + 1 1 48,000 + 45,000 + (7,000) + (10,000) + (25,000) + 60,000 + + 55.000 + + + 166,000 + Assets Sold land for cash. Earned service revenue on account during the year. Received cash collections from accounts receivable. Incurred operating expenses on account during the year. Accounts Receivable 21,000 + + + + + + 80,000 + (55,000) + + + + 48,000 21,000 60,000 $ 129,000 46,000 + Land 60,000 Balance Sheet = = = = Liabilities & Stockholders' Equity Accounts Payable Common Stock Retained Earnings Total = 25,000 = (60,000) = = = = = 25,000 = Accounts Payable 17,500 + + (7,000) + + + 34.000 + 44,500 Felix Company Horizontal Financial Statements Model for Year 2 + + + + + + Common Stock 80,000 45.000 125,000 + + + + + + + T + T + + + $ + $ 17,500 80,000 31,500 129,000 Event Amount $ 45,000 7,000 10,000 25,000 60,000 80,000 55,000 34,000 Retained Earnings 31,500 (10,000) 80,000 101,500 Revenue 80,000 Income Statement Expense 34,000 = = = = = = = = = Net Income 80,000 Statement of Cash Flows 45,000 (7,000) (10,000) (25.000) 60,000 80,000 55.000 ILLLLLL FA OA OA IA ΤΑ OA OA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Felix Company had the following balances in its accounting records as of December 31, Year 1*:
$
Event No.
Beg. Bal.
Jan. 1
Mar. 1
Apr. 1
May 1
Sept. 1
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Assets
Cash
Accounts Receivable
Land
Totals
Total
The following accounting events apply to Felix Company's Year 2 fiscal year:
1
Acquired cash from the issue of common stock.
1
1
1
1
31
31
31
Jan.
Mar.
Apr.
May
Sept
Dec.
Cash
48,000 +
45,000 +
(7,000) +
(10,000) +
(25,000) +
60,000
55,000
+
166,000
+
+
+
+
+
Assets
Accounts
Receivable
21,000 +
+
+
+
+
+
80,000 +
(55,000)
+
+
+
+
$
Made a cash payment on accounts payable.
Paid a cash dividend to the stockholders.
Purchased additional land with cash.
Sold land for cash.
Earned service revenue on account during the year.
Received cash collections from accounts receivable.
Incurred operating expenses on account during the year.
46,000
48,000
21,000
60,000
129,000
+
Land
60,000
Balance Sheet
=
25,000
=
=
=
=
25,000 =
(60,000) =
=
=
Liabilities & Stockholders' Equity
Accounts Payable
Common Stock
Retained Earnings
Total
=
=
=
Accounts
Payable
17,500 +
+
(7,000)
+
+
+
+
+
+
+
+
Felix Company
Horizontal Financial Statements Model for Year 2
34,000
44,500
+
+
Common
Stock
80,000 +
45,000 +
+
125,000
+
+
+
$
+
+
+
+
+
+
17,500
80,000
31,500
129,000
Event Amount
$
45,000
7,000
10,000
25,000
60,000
80,000
55,000
34,000
Retained
Earnings
31,500
(10,000)
80,000
101,500
Revenue
80,000
Income Statement
-
-
-
-
Expense = Net Income
34,000
|||||||||||||||||||
=
=
=
=
=
=
=
=
=
=
80,000
Statement of Cash
Flows
45,000 FA
(7,000) OA
(10,000) OA
(25,000)
60,000
80,000 OA
55,000 OA
1ST ≤ ≤ 88
IA
IA
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