P1.7B (LO 4) (Prepare financial statements.) On May 1, 2024, Aero. Flying School Ltd. was formed. Its assets, liabilities, share capital, revenues, expenses, and dividends as at May 31 follow: Instructions Cash Accounts receivable Supplies Equipment Accounts payable Bank loan payable Common shares Service revenue Interest expense Rent expense Repairs and maintenance expense Fuel expense Office expense Salaries expense Income tax expense Dividends declared $ 26,900 22,600 15,000 372,500 6,400 241,000 180,000 215,300 12,500 12,100 40,900 85,400 12,700 36,600 2,800 2,700 a. Prepare a statement of income, statement of changes in equity, and statement of financial position for the month of May. b. Explain why it is necessary to prepare the financial statements in the order listed in part (a).

P1.7B (LO 4) (Prepare financial statements.) On May 1, 2024, Aero. Flying School Ltd. was formed. Its assets, liabilities, share capital, revenues, expenses, and dividends as at May 31 follow: Instructions Cash Accounts receivable Supplies Equipment Accounts payable Bank loan payable Common shares Service revenue Interest expense Rent expense Repairs and maintenance expense Fuel expense Office expense Salaries expense Income tax expense Dividends declared $ 26,900 22,600 15,000 372,500 6,400 241,000 180,000 215,300 12,500 12,100 40,900 85,400 12,700 36,600 2,800 2,700 a. Prepare a statement of income, statement of changes in equity, and statement of financial position for the month of May. b. Explain why it is necessary to prepare the financial statements in the order listed in part (a).

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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Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2023. Assume that the preferred shares are non-cumulative. Accounts Payable Accounts Receivable Accumulated depreciation, Equipment Accumulated depreciation, Warehouse Cash Cash Dividends Common Shares Equipment Income Tax Expense Land Notes Payable, due in 2026 Operating Expenses Preferred Shares Retained Earnings Revenue Warehouse Current assets $ 26,760 40,200 11,140 22,280 9,400 20,600 Required: Prepare a classified balance sheet at December 31, 2023. (Enter all amounts as positive values.) Assets 122,000 79,400 41,600 127,600 34,600 110,200 40,200 28,720 282,100 138,800 SPICER INC. Balance Sheet December 31, 2023 K
Accounting equation The total assets and total liabilities (in millions) of ABC Corporation and XYZ Corporation follow: Assets ABC Liabilities XYZ $47,172 $45,757 20,756 21,963 Determine the stockholders' equity of each company. ABC Corporation stockholders' equity $ XYZ Corporation stockholders' equity $ million million
E2.8 (LO 2) (Calculate ratios and evaluate profitability.) The following informat Saputo Inc. for the year ended March 31 (in millions, except share price): Income available for common shareholders Weighted average number of common shares Share price 2021 $625.6 409.8 $37.79 2020 $582.8 400.3 $33.84 Instructions a. Calculate the basic earnings per share and price-earnings ratio for each year. b. Based on your calculations above, how did the company's profitability change from 2020 to 2021? c. When income rose, did the share price increase? How does this affect the price-earnings ratio? d. Do you think investors are more or less optimistic about the company's profitability in the future? OC €
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