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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A company had a beginning balance in retained earnings of $44,600. It had net income of $7,600 and declared and paid cash dividends of $6,025 in the current period. The ending balance in retained earnings equals:
At the beginning of the current fiscal year, the balance sheet of Hughey Incorporated showed stockholders' equity of $519,000. During the year, liabilities increased by $23,000 to $224,000, paid-in capital increased by $38,000 to $176,000, and assets increased by $269,000. Dividends declared and paid during the year were $51,000. 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 = 269,000 = Liabilities 23,000 + Stockholders' Equity RE PIC + 38,000 + $ 224,000+ $ 176,000 + $519,000 SE
In its closing financial statements for its first year in business, the Runs and Goes Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218. What is the interest coverage ratio for Runs and Goses?
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders' equity of $520,000. During the year. liabilities increased by $26,000 to $222,000; paid-in capital increased by $34,000 to $178,000; and assets increased by $252,000. Dividends declared and paid during the year were $62,000. Required: Calculate net income or loss for the year. (Amounts to be deducted should be Indicated with a minus sign.) Beginning Changes Ending Assets 252,000 = Liabilities + + 26,000+ Stockholders' Equity RE PIC + 34,000 + $ 222,000+ $ 178,000+ $520,000 SE
On January 1, Payson Incorporated had a retained earnings balance of $44,000. During the year, Payson reported net income of $32,400 and paid cash dividends of $19,400. Calculate the retained earnings balance at its December 31 year-end. Ending retained earnings
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…
Puff Company began the year with a retained earnings balance of $50,000, reported net income for the year of $45,000, and reported ending retained earnings of $60,000. How much dividends did
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?; Common Stock = $5,300; Revenue = $11,600; Dividends = $900; Beginning Retained Earnings = $3,900; Ending Retained Earnings = $7,300. The amount of liabilities reported on the end-of-period balance sheet was A. $11,200. B. $10,400. C. $13,800. D. $9,200.
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.
Berry Company reported the following on the company's income statement in two recent years: Current Prior Year Year $ 320,000 $ 300,000 Interest expense Income before income tax expense 3,200,000 3,600,000 (Continued)

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