Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Chapter 1, Problem 1.1AP
Preparing an Income Statement, Statement of Stockholders’ Equity, and
LO 1-1 Assume that you are the president of Influence Corporation. At the end of the first year (December 31) of operations, the following financial data for the company are available:
| Cash | $ 13,150 |
| Receivables from customers (all considered collectible) | 10,900 |
| Inventory of merchandise (based on physical count and priced at cost) | 27,000 |
| Equipment owned, at cost less used portion | 66,000 |
| Accounts payable owed to suppliers | 31,500 |
| Salary payable (on December 31. this was owed to an employee who will be paid on January 10) | 1,500 |
| Total sales revenue | 100,000 |
| Expenses, including the cost of the merchandise sold (excluding income taxes) | 68,500 |
| Income taxes expense at 30% × Pretax income: all paid during December of the current year | ? |
| Common stock at the end of the current year | 62,000 |
No dividends were declared or paid during the current year. The beginning balances in Common stock and
Required:
Using the financial statement exhibits in the chapter as models and showing computations:
- 1. Prepare a summarized income statement for the year.
- 2. Prepare a statement of stockholders' equity for the year.
- 3. Prepare a balance sheet at year-end.
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Statement of financial position of Fernandez Co
The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year.
Cash
$250,000 Retained Earnings
2,850,000
Accounts Receivable
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50,000
Inventory
1,790,000 Sales
9,350,000
Estimated Returns Inventory
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5,840,000
Office Supplies
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820,000
Prepaid Insurance
8,500 Advertising Expense
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Office Equipment
870,000 Depreciation Expense-Store Equipment
120,000
Accumulated Depreciation-Office Equipment
580,000 Miscellaneous Selling Expense
58,000
Store Equipment
2,600,000 Office Salaries Expense
550,000
Accumulated Depreciation-Store Equipment
820,000 Rent Expense
104,000
Accounts Payable
336,000 Depreciation Expense-Office Equipment
60,000
Customer Refunds Payable
39,000 Insurance Expense
50,000
Salaries Payable
43,000 office Supplies Expense
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Notes Payable (long-term)
200,000 Miscellaneous Administrative…
Single-Step Income Statement
The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8:
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$187,875
Retained Earnings
$ 571,050
Accounts Receivable
337,500
Dividends
281,250
Inventory
855,000
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8,025,750
Estimated Returns Inventory
78,750
Cost of Goods Sold
4,893,750
Office Supplies
33,750
Sales Salaries Expense
874,800
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27,000
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Depreciation Expense— Store Equipment
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Required information
Skip to question
[The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.
At December 31
Current Yr
1 Yr Ago
2 Yrs Ago
Assets
Cash
$
31,800
$
35,625
$
37,800
Accounts receivable, net
89,500
62,500
50,200
Merchandise inventory
112,500
82,500
54,000
Prepaid expenses
10,700
9,375
5,000
Plant assets, net
278,500
255,000
230,500
Total assets
$
523,000
$
445,000
$
377,500
Liabilities and Equity
Accounts payable
$
129,900
$
75,250
$
51,250
Long-term notes payable secured bymortgages on plant assets
98,500
101,500
83,500
Common stock, $10 par value
163,500
163,500
163,500
Retained earnings
131,100
104,750
79,250
Total liabilities and equity
$
523,000
$
445,000
$
377,500
The…
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Briefly distinguish financial accounting from...Ch. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Complete the following: Name of Statement...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the income statement,...Ch. 1 - Explain why the income statement and the statement...Ch. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - Explain the equation for the income statement....Ch. 1 - Explain the equation for the balance sheet. Define...Ch. 1 - Explain the equation for the statement of cash...Ch. 1 - Explain the equation for retained earnings....Ch. 1 - The financial statements discussed in this chapter...Ch. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - (Supplement A) Briefly differentiate between a...Ch. 1 - Prob. 20QCh. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Which of the following regarding retained earnings...Ch. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Which of the following is true regarding the...Ch. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - Matching Elements with Financial Statements M1-1...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Prob. 1.3MECh. 1 - Prob. 1.1ECh. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Preparing a Balance Sheet Honda Motor Corporation...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Prob. 1.8ECh. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing a Statement of Stockholders Equity...Ch. 1 - Focus on Cash Flows: Matching Cash Flow Statement...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Student's Business and Preparing an...Ch. 1 - Comparing Income with Cash Flow (Challenging)...Ch. 1 - Evaluating Data to Support a Loan Application...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Students Business and Preparing an...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.1CONCh. 1 - Finding Financial Information LO1-1 Refer to the...Ch. 1 - Prob. 1.2CPCh. 1 - Comparing Companies within an Industry Refer to...Ch. 1 - Using Financial Reports: Identifying and...Ch. 1 - Prob. 1.5CPCh. 1 - Prob. 1.6CPCh. 1 - Prob. 1.7CP
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