Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 12ME
Preparing a Statement of
Stone Culture Corporation was organized on January 1, 2017. For its first two years of operations, it reported the following:
On the basis of the data given, prepare a statement of retained earnings for both 2017 (its first year of operations) and 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).
Stone Culture Corporation was organized on January 1, 2020. For its first two years of operations, it reported the following:
Net Income for 2020
Net Income for 2021
Dividends for 2020
Dividends for 2021
$ 40,000
45,000
15,000
20,000
125,000
242,000
Total assets at the end of 2020
Total assets at the end of 2021
Required:
On the basis of the data given, prepare a statement of retained earnings for both 2020 (its first year of operations) and 2021.
Complete this question by entering your answers in the tabs below.
2020
2021
On the basis of the data given, prepare a statement of retained earnings for 2021.
STONE CULTURE CORPORATION
Statement of Retained Earnings
Retained Earnings, January 1, 2021
Retained Earnings, December 31, 2021
The unqualified quarterly statement of income issued by Bailey Corporation to its stockholders are usually prepared on
the same basis as annual statements. This statement is referred to as:
a.
O b.
C.
d.
Billing Statement
Qualified Opinion Report
Interim Financial Statements
Annual Financial Statements
Chapter 1 Solutions
Fundamentals Of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Prepare an income statement using the following information for CK Company for the month of February 2019.arrow_forwardBased on the analysis of financials pertaining to the last four years of operation of a company, the following ratios had been derived. Based on such ratio analysis, you are required to comment on the performances of the said company in respect of all four years, starting from the year 2017.arrow_forwardThe following data were taken from the financial statements of Gates Inc. for the current fiscal year. Please see the attachment for details: Assuming that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders’ equity, (c) asset turnover, (d) return on total assets, (e) return on stockholders’ equity, and (f) return on common stockholders’ equity. Round ratios and percentages to one decimal place as appropriate.arrow_forward
- use the following link to answer the required https://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf Required: Conduct a horizontal and vertical analysis of the company’s financial statements to identify trends and patterns over the past two years.arrow_forwardThe year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $34,000; Liabilities = ?; Common Stock = $6,400; Revenue = $13,800; Dividends = $1,450; Beginning Retained Earnings = $4,450; Ending Retained Earnings = $8,400.The amount of liabilities reported on the end-of-period balance sheet was:arrow_forwardOriole Paper Mill, Inc., had, at the beginning of the current fiscal year, April 1, 2016, retained earnings of $ 322,525. During the year ended March 31, 2017, the company produced net income after taxes of $ 713,175 and paid out 41 percent of its net income as dividends. Construct a statement of retained earnings and compute the year-end balance of retained earnings. (Round answers to 2 decimal places, e.g. 15.25. List items that increase retained earnings first.) Oriole Paper Mill, Inc.Retained Earnings for 2017arrow_forward
- Byers Company presents the following condensed income statement for 2019 and condensed December 31, 2019, balance sheet: Compute the following ratios for Byers ( round all computations to two decimals): ( 1) earnings per share, ( 2) gross profit margin, ( 3) operating profit margin, ( 4) net profit margin, ( 5) total asset turnover, ( 6) return on assets, (7) return on common equity, (8) receivables turnover (in days), and (9 ) interest coverage.arrow_forwardPharoah Company is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees) $198,000 Dividends $13,500 Sales revenue (from general store) 37,500 Notes payable 75,000 Accounts payable 16,500 Expenses during 2017 189,000 Cash 12,750 Supplies 8.250 Equipment 171,000 Common stock 60.000 Retained earnings (1/1/2017) 7,500 Determine Pharoah Company's net income for 2017. Pharoah Company's net income for 2017 $4arrow_forwardA comparative retained earnings statement for Marshall Inc., for the years ended December 31, 20Y2 and 20Y1, is shown. The following two column headings are shown: 20Y2 and 20Y1. For Retained earnings, January 1, the following amounts are listed: 20Y2, $3,704,000; 20Y1, $3,264,000. A single rule appears below $3,704,000 and $3,264,000. For Net income, the following amounts are listed: 20Y2, 600,000; 20Y1, 550,000. Under Dividends:, the amounts for On preferred stock and On common stock are shown on two lines. For On preferred stock, the following amounts are listed: 20Y2, (10,000) set in parentheses; 20Y1, (10,000) set in parentheses. For On common stock, the following amounts are listed: 20Y2, (100,000) set in parentheses; 20Y1, (100,000) set in parentheses. A single rule appears below (100,000) set in parentheses and below (100,000) set in parentheses. For Increase in retained earnings, the following amounts are listed: 20Y2, $490,000; 20Y1, $440,000. A single rule appears below…arrow_forward
- Oriole Corporation recently filed the following financial statements with the SEC. Look at the image for the balance sheet and more! Oriole CorporationIncome Statement for the FiscalYear Ended July 31, 2017 Net sales $77,630 Cost of products sold 55,218 Gross profit $22,412 Selling, general, and administrative expenses 9,893 Depreciation 1,124 Operating income (loss) $11,395 Interest expense 688 Earnings (loss) before income taxes $10,707 Income taxes 3,748 Net earnings (loss) $6,959 Use the DuPont identity to calculate the return on equity (ROE). In the process, calculate the following ratios: net profit margin, total asset turnover, equity multiplier, EBIT return on assets (EROA), and return on assets. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin % Total asset turnover Equity multiplier EBIT return on assets % Return on assets %…arrow_forwardKingbird Corporation has retained earnings of $710,000 at January 1, 2020. Net income during 2020 was $1,592,500, and cash dividends declared and paid during 2020 totaled $79,100. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.) KINGBIRD CORPORATIONRetained Earnings Statementchoose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 select an opening name Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a dollar amount select between addition and deduction AddLess: select an item Cash DividendsExpensesNet…arrow_forwardAn analyst has collected the following information regarding a company in advance of its year-end earnings announcement (in millions): Estimated net income $ 200 Beginning retained earnings $ 1,400 Estimated distributions to owners $ 100 Th e analyst’s estimate of ending retained earnings (in millions) should be closest to: C . $1,700.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License