Required Prepare in good form a statement of earnings (income statement) of Hercules Inc. for the year ended December 31, 2019. Prepare in good form a statement of retained earnings of Hercules Inc. for the year ended December 31, 2019. Calculate the following for Hercules at December 31, 2019 Current Assets :____________________________________________________________ Total Assets:________________________________________________________________ Total Liabilities::_____________________________________________________________ Total Shareholders’ equity:___________________________
The assets and liabilities of Hercules Inc. as of December 31,2019, and revenues and expenses for the year ended on that date follow:
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Land $98,000 |
Property tax expense $5,000 |
|
Note payable (due 2025) 95,000 |
|
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Accounts payable 21,000 |
Advertising expense 10,000 |
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Rent expense 3,000 |
Building 140,000 |
|
Cash 10,000 |
Salary expense 85,000 |
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Common shares 75,000 |
Salary payable 12,000 |
|
Furniture 20,000 |
Service revenue 200,000 |
|
Interest expense 4,000 |
Supplies 3,000 |
Beginning retained earnings were $50,000, and dividends totalled $50,000 for the year.
Required
- Prepare in good form a statement of earnings (income statement) of Hercules Inc. for the year ended December 31, 2019.
- Prepare in good form a statement of retained earnings of Hercules Inc. for the year ended December 31, 2019.
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- Calculate the following for Hercules at December 31, 2019
Current Assets :____________________________________________________________
Total Assets:________________________________________________________________
Total Liabilities::_____________________________________________________________
Total Shareholders’ equity:___________________________________________________
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- Analyze Hercules Inc. by answering these questions:
- Was Hercules Inc. profitable during 2019? By how much?______________________________________________________________
______________________________________________________________________
- Who owns more of Hercules Inc.’s assets, the creditors or the shareholders? Why?________________________________________________________________
_____________________________________________________________________
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