Kevin Rogers and Kelly Simmons started Book Haven as a corporation, each contributing $55,000 in cash to start the business and receiving 5,000 shares of stock. At the end of the first year of operations on December 31, 2023, the following financial details were recorded: cash on hand and in the bank was $50,300, amounts due from customers for book sales totaled $32,400, and equipment was valued at $54,000. The company owed $10,000 to publishers for books purchased, and there was a one-year note payable to the bank for $6,100. No dividends were declared or paid during the year. Using the retained earnings equation with an opening balance of $0, calculate the net income for the year ending December 31, 2023.

Kevin Rogers and Kelly Simmons started Book Haven as a corporation, each contributing $55,000 in cash to start the business and receiving 5,000 shares of stock. At the end of the first year of operations on December 31, 2023, the following financial details were recorded: cash on hand and in the bank was $50,300, amounts due from customers for book sales totaled $32,400, and equipment was valued at $54,000. The company owed $10,000 to publishers for books purchased, and there was a one-year note payable to the bank for $6,100. No dividends were declared or paid during the year. Using the retained earnings equation with an opening balance of $0, calculate the net income for the year ending December 31, 2023.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

See similar textbooks

Similar questions

Kevin Richards and Kyle Smith started Book Haven as a corporation, each contributing $65,000 in cash to start the business and receiving 6,000 shares of stock. At the end of the first year of operations on December 31, 2024, the following financial details were recorded: cash on hand and in the bank was $58,400, amounts due from customers for book sales totaled $38,500, and equipment was valued at $62,000. The company owed $12,500 to publishers for books purchased, and there was a one-year note payable to the bank for $7,400. No dividends were declared or paid during the year. Using the retained earnings equation with an opening balance of $0, calculate the net income for the year ending December 31, 2024. HELP
Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. 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, $49,150, amounts due from customers from sales of books, $28,850, property and equipment, $54,750, amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: Total assets Assets READER DIRECT Balance Sheet At December 31, 2020 $ Total liabilities Liabilities Shareholders' equity Total shareholders equity 0 Total llabilities & shareholders' equity $ 0 0
Kevin Rogers and Kelly Simmons started Book Haven as a corporation, each contributing $55,000 in cash to start the business and receiving 5,000 shares of stock. At the end of the first year of operations on December 31, 2023, the following financial details were recorded: cash on hand and in the bank was $50,300, amounts due from customers for book sales totaled $32,400, and equipment was valued at $54,000. The company owed $10,000 to publishers for books purchased, and there was a one-year note payable to the bank for $6,100. No dividends were declared or paid during the year. Using the retained earnings equation with an opening balance of $0, calculate the net income for the year ending December 31, 2023.
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
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 = = +
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? $______
Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $80,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 31, 2014. On that date, the following financial items for the year were determined: December 31, 2014, cash on hand and in the bank, $75,600; December 31, 2014, amounts due from customers from sales of books, $39,000; unused portion of store and office equipment, $73,000; December 31, 2014, amounts owed to publishers for books purchased, $12,000; one-year note payable to a local bank for $3,000. No dividends were declared or paid to the stockholders during the year. Complete the following balance sheet as of the end of 2014. 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.)
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
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…
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. QUESTION: Compute Mango's current ratio for the year ending on September 29, 2018. (Round your answer to 2 decimal places.) Current Ratio:
ASSETS Current assets: Cash MANGO INC.. CONSOLIDATED BALANCE SHEET September 30, 2017 (dollars in millions) Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue. Short-term notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities. Stockholders' equity: Common stock ($0.00001 per value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity Assume that the following transactions fin $ 14,024 11,377 17,681 2,134 24,141 69,357 131,732 20,873 12,676 $234,638 $ 30,563 18,679 8,599 6,385 64,226 29,344 28,196 121,766 1 25,212 87,659 112,872 $234,638