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Business
Accounting
Revenue Expense Net Income 52.500 52,500 29.150 $ (29,150) 612.500 612.500 254,100 S (254,100) 700,000 700,000 272.850 $ (272.850) 30.000 S 75,708 $ 40,000 S 150,000 $ 87,500 S (30.000) (75,708) (40,000) (150,000) (87,500) 38,500 $ (38,500) 37,429 $ (37,429) 1,365,000 S 1,015,237 S 349,763 %24 %24

Revenue Expense Net Income 52.500 52,500 29.150 $ (29,150) 612.500 612.500 254,100 S (254,100) 700,000 700,000 272.850 $ (272.850) 30.000 S 75,708 $ 40,000 S 150,000 $ 87,500 S (30.000) (75,708) (40,000) (150,000) (87,500) 38,500 $ (38,500) 37,429 $ (37,429) 1,365,000 S 1,015,237 S 349,763 %24 %24

FINANCIAL ACCOUNTING
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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whats the  income statement for this?

Balance Sheet Assets Equipment Li Div Pay Events Land $ 50,000.00 $ Accum Depr 8,333.00 $ Cash Acct Rec Inventory Building 250.000.00 Acct Pay 257,000.00 $ 17,500.00 $ 28,000.00 Beginning Balances as of Dec 31, Year 1 Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment for $300,000 .Purchased Inventory on Account - 25,000 Units at $1.15 per unit 5a. Sold 15,000 units at $3.50 on Account 5b. COGS for Sales on Account 6. Collect $70,000 on Account 7. Paid $117,250 of Accounts Payable 8. Purchased Inventory on Account - 170,000 Units at $1.50 per unit 9a. Sold 175,000 units at $3.50 on Account 9b. COGS for Sales on Account 10. Collect $472,500 on Account 11. Paid $218,600 of Accounts Payable 12. Purchased Invenfory on Account - 275,000 Units at $1.35 per unit 13a. Sold 200,000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735,000 on Account 15. Paid $494,150 of Accounts Payable 16. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 17. Paid Sales & Marketing Expenses of $30,000 18. Paid Operating Expenses of $75,708 19. Record Wages Payable of $40,000 20. Paid Product Line Research & Development Expenses of $150,000 |21. Paid Advertising Expenses of $87,500 24 118,000.00 550,000 1,500,000 (300,000) $ 300,000 28,750 28,750 52,500 (29,150) 70,000 $ (117,250) (70,000) (117,250) 255,000 255.000 612,500 (254,100) 472,500 $ (472,500) (218,600) $ (218,600.00) 371,250 371,250 700.000 (272,850) |- 735,000 $ (735,000) |- (494.150) |- $ (494,150.00) 345,000 345.000.00 (30,000) (75,708) - (150,000) (87,500) 22. Made the yearly required payment on the note payable. The note caries a 7% $ interest rate and requires payments of $50,000 plus interest each December 31. (88,500) 23. Record first year of Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 Yrs 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Balance at end of Yr 2 37,429.00 10,000.00 (10,000) 2,012,792 $ (10,000.00) 105,000 $ 471,900 $ 300,000 $ 50,000 S 250,000 -$ 45,762 $ 288,000 $ Total Assets 3.143.930 Total Liabilities & Equity 3,143,930
Transcribed Image Text:Balance Sheet Assets Equipment Li Div Pay Events Land $ 50,000.00 $ Accum Depr 8,333.00 $ Cash Acct Rec Inventory Building 250.000.00 Acct Pay 257,000.00 $ 17,500.00 $ 28,000.00 Beginning Balances as of Dec 31, Year 1 Acquired $550,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 Common Stock for $1,500,000 3. Purchased Equipment for $300,000 .Purchased Inventory on Account - 25,000 Units at $1.15 per unit 5a. Sold 15,000 units at $3.50 on Account 5b. COGS for Sales on Account 6. Collect $70,000 on Account 7. Paid $117,250 of Accounts Payable 8. Purchased Inventory on Account - 170,000 Units at $1.50 per unit 9a. Sold 175,000 units at $3.50 on Account 9b. COGS for Sales on Account 10. Collect $472,500 on Account 11. Paid $218,600 of Accounts Payable 12. Purchased Invenfory on Account - 275,000 Units at $1.35 per unit 13a. Sold 200,000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735,000 on Account 15. Paid $494,150 of Accounts Payable 16. Purchased Inventory on Account - 300,000 Units at $1.15 per unit 17. Paid Sales & Marketing Expenses of $30,000 18. Paid Operating Expenses of $75,708 19. Record Wages Payable of $40,000 20. Paid Product Line Research & Development Expenses of $150,000 |21. Paid Advertising Expenses of $87,500 24 118,000.00 550,000 1,500,000 (300,000) $ 300,000 28,750 28,750 52,500 (29,150) 70,000 $ (117,250) (70,000) (117,250) 255,000 255.000 612,500 (254,100) 472,500 $ (472,500) (218,600) $ (218,600.00) 371,250 371,250 700.000 (272,850) |- 735,000 $ (735,000) |- (494.150) |- $ (494,150.00) 345,000 345.000.00 (30,000) (75,708) - (150,000) (87,500) 22. Made the yearly required payment on the note payable. The note caries a 7% $ interest rate and requires payments of $50,000 plus interest each December 31. (88,500) 23. Record first year of Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 Yrs 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Balance at end of Yr 2 37,429.00 10,000.00 (10,000) 2,012,792 $ (10,000.00) 105,000 $ 471,900 $ 300,000 $ 50,000 S 250,000 -$ 45,762 $ 288,000 $ Total Assets 3.143.930 Total Liabilities & Equity 3,143,930
Equity APIC 100,000.00 $ Liab Notes Pay Wages Pay Retain Earnings 176,167.00 Common Stock Account Titles Revenue Expense Net Income Туре Amount 200.000,00 $ 550,000 Financing 550,000 $ 1,500,000 550,000 $ 950,000 Financing Investing (300,000) Non Cash 52,500 52,500 52,500 Non Cash (29,150) 29.150 $ (29,150) Non Cash Operating 70,000 Operating Non Cash $ (117,250) 612.500 612,500 612,500 Non Cash (254,100) 254,100 (254,100) Non Cash Operating Operating 472,500 $ (218,600) Non Cash 700,000 700,000 700,000 Non Cash (272,850) 272,850 $ (272,850) Non Cash 735,000 (494,150) Operating Operating Non Cash Operating Operating 30,000 $ 75,708 $ 40,000 $ 150,000 $ (150,000) 87,500 $ (30,000) (75,708) (30,000) (30,000) (75,708) (40,000) (150,000) (87,500) (75,708) 40,000 (40,000) Operating Operating $ (150,000) (87,500) (87,500) $ (50,000) (38,500) 38,500 $ (38,500) Operating (88,500) (37,429) $ 37,429 $ (37,429) Non Cash (10,000) Non Cash Financing Net Change in Cash (10,000) 500,000 $ 40,000 $ 750,000 $ 1,050,000 $ 515,930 1,365,000 $ 1,015,237 $ 349,763 $ 1,755,792
Transcribed Image Text:Equity APIC 100,000.00 $ Liab Notes Pay Wages Pay Retain Earnings 176,167.00 Common Stock Account Titles Revenue Expense Net Income Туре Amount 200.000,00 $ 550,000 Financing 550,000 $ 1,500,000 550,000 $ 950,000 Financing Investing (300,000) Non Cash 52,500 52,500 52,500 Non Cash (29,150) 29.150 $ (29,150) Non Cash Operating 70,000 Operating Non Cash $ (117,250) 612.500 612,500 612,500 Non Cash (254,100) 254,100 (254,100) Non Cash Operating Operating 472,500 $ (218,600) Non Cash 700,000 700,000 700,000 Non Cash (272,850) 272,850 $ (272,850) Non Cash 735,000 (494,150) Operating Operating Non Cash Operating Operating 30,000 $ 75,708 $ 40,000 $ 150,000 $ (150,000) 87,500 $ (30,000) (75,708) (30,000) (30,000) (75,708) (40,000) (150,000) (87,500) (75,708) 40,000 (40,000) Operating Operating $ (150,000) (87,500) (87,500) $ (50,000) (38,500) 38,500 $ (38,500) Operating (88,500) (37,429) $ 37,429 $ (37,429) Non Cash (10,000) Non Cash Financing Net Change in Cash (10,000) 500,000 $ 40,000 $ 750,000 $ 1,050,000 $ 515,930 1,365,000 $ 1,015,237 $ 349,763 $ 1,755,792
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