The income statement for the Splish Brothers Inc. for the month ended July 31 shows Service Revenue $ 17,350, Salaries and WagesExpense $ 9,000, Maintenance and Repairs Expense $ 2,850, and Income Tax Expense $ 1,290. The statement of retained earningsshows an opening balance for Retained Earnings of $ 22,070 and Dividends $ 1,990. Prepare ciosing journal entries. (if io entry is requirea, seiect No Entry for trie actount tities arna enter v for trie armourits. Creaitaccount titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJuly 31(To close revenue account)July 31(To close expense accounts)July 31(To close net income/(loss) to retained earnings)

It is pertinent to note that all incomes, expenses are transferred to the profit and loss account.…

Answered: The income statement for the Splish…

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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Required: 1. Present component percentages for Year 2 only. (Input all amounts as positive values. Round the final answers to the nearest whole percent. Percentages may not add exactly due to rounding.) Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings Statement of financial position: Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common shares Retained earnings Total liabilities and shareholders' equity Component Percentages Year 2 % do % 0 % de % 0 % % 0 % do do do do do % % % % 0 % % % % % 0 %
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities. Stockholders equity Connon stock, $5 per value. Retained earnings Total stockholders equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30%) Net income $24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 $ 290,000 320,000 610,000 $150,000. 733,000 883,000 $1,493,000 $ 2,290,000 1,220,000 1,070,000 580,000 490,000 32,000 458,000 137,400 $ 320,600
You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet. Cash $ 12,330 Accounts receivable 20,370 Inventory 36,900 Property, plant, and equipment, net of depreciation 120,500 Accounts payable 22,640 Common stock 153,800 Retained earnings 12,460 Additional information concerning Splish Brothers Inc. is as follows. 1. Gross profit is 26% of sales. 2. Actual and budgeted sales data: March (actual) $47,000 April (budgeted) 73,100 3. Sales are both cash and credit. Cash collections expected in April are: March $18,800 (40% of $47,000) April 43,860 (60% of $73,100) $62,660 4. Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: Purchases March $22,640…
As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $908,611 and liabilities of $274,782. During Year 2, stockholders invested an additional $28,983 and received $25,270 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $981,663 and liabilities were $238,074? a.$73,052 b.$25,270 c.$106,047 d.$36,708.
At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $436,000. During the year, liabilities decreased by $76,000; assets increased by $158,000; and paid-in capital increased by $17,000 to $377,000. Dividends declared and paid during the year were $121,000. At the end of the year, stockholders' equity totaled $757,000. Required: Calculate net income or loss for the year. (Amounts to be deducted should be indicated with a minus sign.) Beginning Changes Ending Stockholders' Equity PIC RE Assets Liabilities + $436,000 (76,000) + 17,000 158,000 = + $ 377,000 + $757,000 SE
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues and gains: Sales $ 750 Gain on sale of building 11 $ 761 Expenses and loss: Cost of goods sold $ 275 Salaries 115 Insurance 35 Depreciation 118 Interest expense 45 Loss on sale of equipment 13 601 Income before tax 160 Income tax expense 80 Net income $ 80 PARNELL COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $ 129 $ 105 $ 24 Accounts receivable 319 221 98 Inventory 326 420 (94 ) Prepaid insurance 71 83 (12 ) Accounts payable 205 122 83 Salaries payable 112 98 14…
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At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $431,000. During the year, liabilities decreased by $74,000, assets increased by $152,000, and paid-in capital increased by $17,000 to $370,000. Dividends declared and paid during the year were $123,000. At the end of the year, stockholders' equity totaled $752,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets $ 957,000 152,000 Liabilities $ 431,000+ $ (74,000) + $ 74,000+ Stockholders' Equity RE PIC + 17,000+ 17,000+ $ 370,000+ $752,000 SE
As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $918,936 and liabilities of $275,632. During Year 2, stockholders invested an additional $28,692 and received $25,774 in dividends from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $985,989 and liabilities were $239,2027 a. $36,430 Ob. $100,565 O c. $25,774 O d. $67,053
Applying the Fundamental Accounting Equation On January 1, Huffer Corporation had total assets of $230,500, total liabilities of $84,200, common stock of $83,700, and retained earnings of $62,600. During the year, Huffer had net income of $42,750, declared and paid dividends of $11,900, and issued additional common stock for $13,100, Huffer's total assets on December 31 were $230,500. Required: Calculate the amount of liabilities that Huffer must have on December 31 in order for the balance sheet equation to balance.
Gerardo Company had a net income of $75,000 and other comprehensive income of $12,500 for the year. On January 1, the retained earnings balance was $525,000 and the accumulated other comprehensive income balance was $55,000. a. Determine the comprehensive income for the year. B. Determine the retained earnings balance on December 31. C. Determine the accumulated other comprehensive income on December 31.
Atl Corp reports the following amounts at the end of Year 1 Operations: Common Stock $200,000 Sales Revenue $800,000 Total assets $600,000 Dividends Declared $51,000 Total Liabilities $345,000 What are the retained earnings at the end of year and what amount of expenses were incurred during the year?

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