some that data is missing, a comparative report of year-end account balances appears below. All numbers are as of December 31st unless noted otherwise. 2023 Retained earnings, Jan. 1 47,940 2022 33,200 Accounts receivable 5,800 4,600 Supplies 390 430 Utility expense 4,320 3,840 Revenues 214,900 186,900 Equipment 99,420 72,910 Cash 9,300 16,200 Notes payable ? 18,700 Common stock 32,000 32,000 Supplies expense 530 460 Dividends 3,400 2,500 Advertising expense 6,400 5,600 Rent expense 18,200 ? Inventory 18,500 ? Payroll expense 50,100 43,500 Retained earnings, Dec. 31 ? 47,940 112,680 98,060 9,600 8,400 Cost of goods sold Accounts payable Required: a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. During January of 2024, the company had the following transactions: Jan. 1 Paid rent of $1,500 for the month Jan. Jan. 3 6 Sold services to customers for $15,600 on account Jan. 8 Borrowed $3,000 from a bank Purchased $800 of equipment on account Paid $450 owed to suppliers for equipment previously purchased on account Paid $475 for advertising Dividend of $300 is paid to the owner Received $600 from customers on account Jan. 12 Jan. 18 Jan. 23 Jan. 28 Jan. 29 Jan. 30 Paid utility bill of $360 for the month Jan. 31 Paid employee payroll of $4,200 Jan. 31 Supplies still on hand were reported at $410 Purchased $200 of supplies on account Prepare a tabular analysis for January, record the transactions and then prepare a statement of cash flows, income statement, statement of retained earnings and balance sheet for the company. c. Assess the company's comparative results for the two-year and one-month period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you consider investing more money in the company? Briefly explain your decisions.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10PA: Elegant Universal uses the balance sheet aging method to account for uncollectible debt on...
icon
Related questions
Question
some that data is missing, a comparative report of year-end account balances appears below. All numbers are as of
December 31st unless noted otherwise.
2023
Retained earnings, Jan. 1
47,940
2022
33,200
Accounts receivable
5,800
4,600
Supplies
390
430
Utility expense
4,320
3,840
Revenues
214,900
186,900
Equipment
99,420
72,910
Cash
9,300
16,200
Notes payable
?
18,700
Common stock
32,000
32,000
Supplies expense
530
460
Dividends
3,400
2,500
Advertising expense
6,400
5,600
Rent expense
18,200
?
Inventory
18,500
?
Payroll expense
50,100
43,500
Retained earnings, Dec. 31
?
47,940
112,680
98,060
9,600
8,400
Cost of goods sold
Accounts payable
Required:
a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the
missing values.
b. During January of 2024, the company had the following transactions:
Jan. 1
Paid rent of $1,500 for the month
Jan.
Jan. 3
6
Sold services to customers for $15,600 on account
Jan. 8
Borrowed $3,000 from a bank
Purchased $800 of equipment on account
Paid $450 owed to suppliers for equipment previously purchased on account
Paid $475 for advertising
Dividend of $300 is paid to the owner
Received $600 from customers on account
Jan. 12
Jan. 18
Jan. 23
Jan. 28
Jan. 29
Jan. 30
Paid utility bill of $360 for the month
Jan. 31
Paid employee payroll of $4,200
Jan. 31
Supplies still on hand were reported at $410
Purchased $200 of supplies on account
Prepare a tabular analysis for January, record the transactions and then prepare a statement of cash flows, income
statement, statement of retained earnings and balance sheet for the company.
c. Assess the company's comparative results for the two-year and one-month period from the perspective of a bank and
then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you
were a bank would you lend the company more money? If you were an investor would you consider investing more
money in the company? Briefly explain your decisions.
Transcribed Image Text:some that data is missing, a comparative report of year-end account balances appears below. All numbers are as of December 31st unless noted otherwise. 2023 Retained earnings, Jan. 1 47,940 2022 33,200 Accounts receivable 5,800 4,600 Supplies 390 430 Utility expense 4,320 3,840 Revenues 214,900 186,900 Equipment 99,420 72,910 Cash 9,300 16,200 Notes payable ? 18,700 Common stock 32,000 32,000 Supplies expense 530 460 Dividends 3,400 2,500 Advertising expense 6,400 5,600 Rent expense 18,200 ? Inventory 18,500 ? Payroll expense 50,100 43,500 Retained earnings, Dec. 31 ? 47,940 112,680 98,060 9,600 8,400 Cost of goods sold Accounts payable Required: a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. During January of 2024, the company had the following transactions: Jan. 1 Paid rent of $1,500 for the month Jan. Jan. 3 6 Sold services to customers for $15,600 on account Jan. 8 Borrowed $3,000 from a bank Purchased $800 of equipment on account Paid $450 owed to suppliers for equipment previously purchased on account Paid $475 for advertising Dividend of $300 is paid to the owner Received $600 from customers on account Jan. 12 Jan. 18 Jan. 23 Jan. 28 Jan. 29 Jan. 30 Paid utility bill of $360 for the month Jan. 31 Paid employee payroll of $4,200 Jan. 31 Supplies still on hand were reported at $410 Purchased $200 of supplies on account Prepare a tabular analysis for January, record the transactions and then prepare a statement of cash flows, income statement, statement of retained earnings and balance sheet for the company. c. Assess the company's comparative results for the two-year and one-month period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you consider investing more money in the company? Briefly explain your decisions.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage