hsl.2 Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $71,050 cash to start the business andreceived 5,800 shares. The store completed its first year of operations on December 31, 2020. On that date, the following financialitems for the year were determined: cash on hand and in the bank, $57,400; amounts due from customers from sales of books,$38,600; property and equipment, $88,500; amounts owed to publishers for books purchased, $13,400; one-year note payable to alocal bank for $10,950. No dividends were declared or paid to the shareholders during the year.Required:1. Complete the balance sheet at December 31, 2020:CashAccounts receivableProperty and equipmentTotal assetsAssetsREADER DIRECTBalance SheetAt December 31, 202057,400Accounts payable38,600Note payable88,500Liabilities13,40010,950Total liabilities24,350Shareholders' equityCommon shares142,100Retained earnings18,050Total shareholders' equity160,150$ 184,500 Total liabilities & shareholders' equity$ 184,500

AssetsLiabilitiesCash$57,400Accounts payable$13,400Accounts receivable38,600Note…

Answered: Ken Young and Kim Sherwood organized…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $48,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $43,500; amounts due from customers from sales of books, $27,800; equipment, $47,000; amounts owed to publishers for books purchased, $8,300; one-year notes payable to a local bank for $4,200. No dividends were declared or paid to the stockholders during the year. Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020.
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $46,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $41,500; amounts due from customers from sales of books, $27,600; equipment, $45,000; amounts owed to publishers for books purchased, $8,100; one-year notes payable to a local bank for $3,900. No dividends were declared or paid to the stockholders during the year. 2. Using the retained earnings equation and an openind balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020. Net Income = Ending RE + Dividends-Beginning RE
Two individuals organized Teacup company as a corporation; each contributed $27,000 cash to start the business and received shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $29,400; amounts due from customers from sales of books, $22,500; equipment, $58,900; amounts owed to publishers for books purchased, $7,000; one-year notes payable to a local bank for $23,200. No dividends were declared or paid to the stockholders during the year. On December 31, 2020, what is the total retained earnings of Teacup? $______
The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $47,500; amounts due from customers from sales of books, $26,900; equipment, $48,000; amounts owed to publishers for books purchased, $8,000; one-year notes payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year. E1-4 (Static) Part 2 2. Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020. Net Income Ending RE + Dividends - Beginning RE = = +
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…
Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to start the business and received 5,800 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, $70,150; December 31, current year, amounts due from customers from sales of books, $41,000; unused portion of store and office equipment, $78,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,200. 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…
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $55,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined: cash on hand and in the bank, $50,500; amounts due from customers from sales of books, $28,500; equipment, $54,000; amounts owed to publishers for books purchased, $9,000; one-year notes payable to a local bank for $5,250. No dividends were declared or paid to the stockholders during the year.Assuming that Reader Direct generates net income of $6,000 and pays dividends of $3,600 in 2018, what would be the ending Retained Earnings balance at December 31, 2018?This is the problem I have been given, and I've gotten to this point. I am just very confused on the Ending RE and Beginning RE.So far I haveENDING RE = BEG RE + Net Income- Dividends________ = _______ + 6,000 - 3,600
AWQ Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, AWQ reported net income of $20,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on AWQ's balance sheet at the end of the year last year?
In June 2020, Shalimar organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows: June 1 The corporation issued 70,000 shares of capital stock to Wendy Winger in exchange for $140,000 cash. June 2 Purchased a plane from Utility Aircraft for $240,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 4 Paid Woodrow Airport $2,200 to rent office and hangar space for the month. June 15 Billed customers $8,520 for aerial photographs taken during the first half of June. June 15 Paid $6,880 in salaries earned by employees during the first half of June. June 18 Paid Hannigan’s Hangar $1,990 for maintenance and repair services on the company plane. June 25 Collected $4,900 of the amounts billed to customers on June 15. June 30 Billed customers $17,450 for aerial photographs taken during the second half of the month. June 30 Paid…
Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise): A building with a book value of $400,000 was sold for $500,000. Additional common stock was issued for $160,000. Dristell purchased its own common stock as treasury stock at a cost of $75,000. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller. A dividend of $40,000 was paid to shareholders. An investment in Fleet Corp.’s common stock was made for $120,000. New equipment was purchased for $65,000. A $90,000 note payable issued three years ago was paid in full. A loan for $100,000 was made to one of Dristell’s suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months. Required:Calculate net cash flows from investing activities. (List cash outflows and any decrease in cash as negative amounts.)
In June 2021, Wanda Fonda organized a corporation to provide drone photography services. The company, called Drone Queen Ic., began operations immediately. Transactions during the month of June were as follows: The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for $60,000 cash. June 1 Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 2 June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month. June 15 Billed customers $8,320 for aerial photographs taken during the first half of June. June 15 Paid $5,880 in salaries earned by employees during the first half of June. Paid Henry's Hangar $1,890 for maintenance and repair services on the company plane. June 18 June 25 Collected $4,910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second half of the month. June 30 Paid…
Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018): Borrowed $21,304 from banks due in two years. Purchased additional investments for $21,500 cash; one-fifth were long term and the rest were short term. Purchased property, plant, and equipment; paid $9,610 in cash and signed a short-term note for $1,448. Issued additional shares of common stock for $1,507 in cash; total par value was $1 and the rest was in excess of par value. Sold short-term investments costing $19,045 for $19,045 cash. Declared $11,163 in dividends to be paid at the beginning of the next fiscal year. Use the drop-downs below to select the accounts that should be properly included on the balance sheet. MANGO, INC. Balance Sheet At September 29, 2018 (in millions) Assets Current assets: Total current assets 0 Total assets $0 Liabilities…

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