Income Statement Stmt of Stockholders Balance Sheet Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required Information
[The following information applies to the questions clisplayed beiow.]
Aubree and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019.
The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows:
Furniture Refinishers, Inc.
Trial Balance on January 1, 2020
Account Titles
Credit
Debit
5,000
4, eee
5.800
Cash
Accounts receivable
Supplies
Small tools
Equipment
Accumulated depreciation (on equipment)
Other noncurrent assets (not detailed to simplify)
Accounts payable
Dividends payable
Notes payable
wages payable
Interest payable
Incone taxes payable
Unearned revenue
6.000
8,800
6,000
8,eee
11,000
3,000
Conmon stock (80, e00 shares, se.10 par value)
Additional paid-in capital
Retained earnings
Service revenue
Depreciation expense
wages expense
Interest expense
Incone tax expense
Miscellaneous expenses (not detailed to simplify)
Totals
28,000
28,000
Transactions during 2020 follow:
a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable.
b. Purchased equipment for $19,000 cash on July 1, 2020.
c. Sold 20.000 additional shares of capital stock for cash at $.50 market value per share at the beginning of the year.
d. Earned $134.000 in revenues for 2020, including $27,000 on credit and the rest in cash.
e. Incurred $27.000 in wages expense and $9.000 in miscellaneous expenses for 2020, with $8.000 on credit and the
rest paid with cash. Note: Wages are paid in cash.
1. Purchased additional small tools, $3,000 cash.
g. Collected accounts receivable. $13.000.
h. Paid accounts payable, $13.000.
i. Purchased $16.000 of supplies on account.
Received a $2.000 deposit on work to start January 15, 2021.
k. Deciared a cash dividend on December 1, S18,000; paid on December 31.
Data for adjusting entries:
L Supplies of $6.000 and small tools of $5,000 were counted on December 31, 2020 (debit Miscellaneous Expenses).
m. Depreciation for 2020, $5.000.
n. Interest accrued on notes payable (to be computed).
o. Wages earned since the December 24 payroll but not yet paid, $3.000.
p. Income tax expense was $5.000, payable in 2021.
Complete this question by entering your answers in the tabs below.
Income
Statement
Stmt of
Stockholders Balance Sheet
Equity
Prepare a balance sheet. (Items to be deducted must be indicated with a minus sign.)
FURNITURE REFINI SHERS, INC.
Balance Sheet
At December 31, 2020
Assets
Liabilities
Current assets:
Current liabilities:
Accounts receivable
Accounts payable
Cash
Supplies
Small tools
Total current assets
Total current liabilities
Stockholders' equity
Equipment - Net Book Value
Total stockholders' equity
Total assets
Total liabilities and stockholders' equity
< Stmt of Stockholders Equity
Balance Sheet >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1b4ea61b-d8a5-4207-9e51-c6dfb57bd7ba%2F421a7138-4eb4-471f-bff1-13abe7bbb1f6%2Fxlujcvs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions clisplayed beiow.]
Aubree and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019.
The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows:
Furniture Refinishers, Inc.
Trial Balance on January 1, 2020
Account Titles
Credit
Debit
5,000
4, eee
5.800
Cash
Accounts receivable
Supplies
Small tools
Equipment
Accumulated depreciation (on equipment)
Other noncurrent assets (not detailed to simplify)
Accounts payable
Dividends payable
Notes payable
wages payable
Interest payable
Incone taxes payable
Unearned revenue
6.000
8,800
6,000
8,eee
11,000
3,000
Conmon stock (80, e00 shares, se.10 par value)
Additional paid-in capital
Retained earnings
Service revenue
Depreciation expense
wages expense
Interest expense
Incone tax expense
Miscellaneous expenses (not detailed to simplify)
Totals
28,000
28,000
Transactions during 2020 follow:
a. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable.
b. Purchased equipment for $19,000 cash on July 1, 2020.
c. Sold 20.000 additional shares of capital stock for cash at $.50 market value per share at the beginning of the year.
d. Earned $134.000 in revenues for 2020, including $27,000 on credit and the rest in cash.
e. Incurred $27.000 in wages expense and $9.000 in miscellaneous expenses for 2020, with $8.000 on credit and the
rest paid with cash. Note: Wages are paid in cash.
1. Purchased additional small tools, $3,000 cash.
g. Collected accounts receivable. $13.000.
h. Paid accounts payable, $13.000.
i. Purchased $16.000 of supplies on account.
Received a $2.000 deposit on work to start January 15, 2021.
k. Deciared a cash dividend on December 1, S18,000; paid on December 31.
Data for adjusting entries:
L Supplies of $6.000 and small tools of $5,000 were counted on December 31, 2020 (debit Miscellaneous Expenses).
m. Depreciation for 2020, $5.000.
n. Interest accrued on notes payable (to be computed).
o. Wages earned since the December 24 payroll but not yet paid, $3.000.
p. Income tax expense was $5.000, payable in 2021.
Complete this question by entering your answers in the tabs below.
Income
Statement
Stmt of
Stockholders Balance Sheet
Equity
Prepare a balance sheet. (Items to be deducted must be indicated with a minus sign.)
FURNITURE REFINI SHERS, INC.
Balance Sheet
At December 31, 2020
Assets
Liabilities
Current assets:
Current liabilities:
Accounts receivable
Accounts payable
Cash
Supplies
Small tools
Total current assets
Total current liabilities
Stockholders' equity
Equipment - Net Book Value
Total stockholders' equity
Total assets
Total liabilities and stockholders' equity
< Stmt of Stockholders Equity
Balance Sheet >
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