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.

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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