Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 1, Problem 15QS
To determine
To prepare an income statement for Company HN.
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At December 31, Rolison Consulting’s financial records show the following selected account information.
Service revenue..................... $90,000Rent expense......................... $25,000Salaries expense.................... $54,000Supplies expense..................... $3,000Depreciation expense............... $6,000Retained earnings.................. $52,000 (credit balance)Contributed Capital................. $10,000 (credit balance)
After all closing entries are recorded and posted, what is the balance of the contributed capital account?
At December 31, Rolison Consulting’s financial records show the following selected account information.
Service revenue..................... $90,000Rent expense......................... $25,000Salaries expense.................... $54,000Supplies expense..................... $3,000Depreciation expense............... $6,000Retained earnings.................. $52,000 (credit balance)Contributed Capital................. $10,000 (credit balance)
After all closing entries are recorded and posted, what is the balance of the retained earnings account?
At December 31, Rolison Consulting’s financial records show the following selected account information.
Service revenue..................... $90,000Rent expense......................... $25,000Salaries expense.................... $54,000Supplies expense..................... $3,000Depreciation expense............... $6,000Retained earnings.................. $52,000 (credit balance)Contributed Capital................. $10,000 (credit…
Selected accounts from Lue Co.’s adjusted trial balance for the year ended December 31 follow. Prepare aclassified balance sheet. Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 Employee federal income taxes payable . . . . . . . . $9,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Federal unemployment taxes payable . . . . . . . . . . 200Salaries payable . . . . . . . . . . . . . . . . . . . . . . 34,000 FICA—Medicare taxes payable . . . . . . . . . . . . . . . . 725Accounts receivable . . . . . . . . . . . . . . . . . . . 5,100 FICA—Social Security taxes payable . . . . . . . . . . . . 3,100Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 Employee medical insurance payable . . . . . . . . . . 2,000Current portion of long-term debt . . . . . . . . 4,000 State unemployment taxes payable . . . . . . . . . . . . 1,800Notes payable (due in 6 years) . . . . . . . . . . . 10,000 Sales tax payable (due in 2 weeks)…
Chapter 1 Solutions
Principles of Financial Accounting.
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by 100,000...Ch. 1 - Brunswick borrows 50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Identify three actual businesses that offer...
Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQCh. 1 - What type of accounting information might be...Ch. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Describe the three basic forms of business...Ch. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Identify the two main categories of accounting...Ch. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Give two examples of expenses a business might...Ch. 1 - What is the purpose of the statement of retained...Ch. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - GOOGLE Access the SEC EDGAR database (SEC.gov) and...Ch. 1 - Understanding accounting Choose from the following...Ch. 1 - Identifying accounting users C2 Identify the...Ch. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Identifying accounting principles and assumptions...Ch. 1 - Applying the accounting equation A1 a. Total...Ch. 1 - Applying the accounting equation Use the...Ch. 1 - Use Google 's December 31, 2017, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Classifying activities reflected in the accounting...Ch. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Using the accounting equation Determine the...Ch. 1 - Using the accounting equation Answer the following...Ch. 1 - Analysis using the accounting equation Zen began a...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions using the...Ch. 1 - Prob. 14ECh. 1 - Preparing an income statement On October 1, Ebony...Ch. 1 - Preparing a statement of retained earnings Use the...Ch. 1 - Prob. 17ECh. 1 - Preparing a statement of cash flows Use the...Ch. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Match each transaction a through e to one of tire...Ch. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Identifying effects of transactions on financial...Ch. 1 - Computing missing information using accounting...Ch. 1 - Preparing an income statement P2 As of December...Ch. 1 - Prob. 4APCh. 1 - Prob. 5APCh. 1 - Preparing a statement of cash flows P2 Following...Ch. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Determining expenses, liabilities. equity, and...Ch. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Describing business activities C5 A start-up...Ch. 1 - Describing business activities An organization...Ch. 1 - Prob. 1BPCh. 1 - Prob. 3BPCh. 1 - Prob. 4BPCh. 1 - Prob. 5BPCh. 1 - Prob. 6BPCh. 1 - Prob. 8BPCh. 1 - Determining expenses, liabilities, equity, and...Ch. 1 - Prob. 11BPCh. 1 - Identifying risk and return All business decisions...Ch. 1 - Prob. 13BPCh. 1 - Prob. 14BPCh. 1 - Prob. 1SPCh. 1 - COMPANY ANALYSIS Key financial figures for Apple's...Ch. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - ETHICS CHALLENGE Tana Thorne works in a public...Ch. 1 - COMMUNICATING IN PRAC TICE APPLE Refer to this...Ch. 1 - TAKING IT TO THE NET A2 Visit the EDGAR database...Ch. 1 - ENTREPRENEURIAL DECISION APPLE Refer to this...
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- Salaries expense .......3,000 Consulting revenue.... 12,000 Cash...... 8,000 Utilities expense.. Note payable.... Accounts receivable........ $3,500 A. Lopez, Withdrawals..... 2,000 Office supplies...... Rental revenue.. ... 200 .2,400 .1,500 500 Advertising expense.. Prepaid insurance.. Accounts payable...... $1,300 ..400 .1,000 Note receivable.. . 2,500 Rent expense.. Unearned revenue.......300 2,000 Required 1. Prepare a March income statement for the business.arrow_forwardSelected accounts from Lue Co.'s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Total equity........ ....... $30,000 Employee federal income taxes payable $9,000 Equipment...... ..725 Salaries payable.... Accounts receivable. Cash.......... 3,100 40,000 Federal unemployment taxes payable .......... 200 34,000 FICA-Medicare taxes payable...... 5,100 FICA-Social Security taxes payable.. 50,000 Employee medical insurance payable. ..4,000 State unemployment taxes payable. . 10,000 Sales tax payable (due in 2 weeks). .2,000 Current portion of long-term debt......... Notes payable (due in 6 years)... .275 1,800arrow_forwardThe following data relate to the operations of Shilow Company, a wholesale distributor of con-sumer goods: Current assets as of March 31: Cash .............................. $8,000 Accounts receivable................. $20,000 Inventory........................... $36,000 Buildings and equipment, net...........$120,000 Accounts payable ..................... $21,750 Capital stock..........................$150,000 Retained earnings..................... $12,250 The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) ...................$50,000 April . . . . . . . . . . . . . . . .$60,000 May ..................................$72,000 June..................................$90,000 July ..................................$48,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month’s ending inventory should equal 80% of the following…arrow_forward
- These account balances at December 31 relate to Sportplace, Inc.:Accounts Payable ........................ $ 51,700Accounts Receivable....................Common Stock ...........................81,050Treasury Stock ............................Bonds Payable .............................313,0005,7003,300Paid-in Capital in Excessof Par—Common................................. $240,000Preferred Stock, 10%, $100 Par................Retained Earnings.....................................Notes Receivable.......................................85,00071,90012,800Q10-62. What is total paid-in capital for Sportplace? (Assume that treasury stock does notreduce total paid-in capital.)a. $632,300b. $709,900c. $643,700d. $638,000e. None of the abovearrow_forwardOn May 1, Donovan Company reported the following account balances:Current assets . . . . . . . . . . . . $ 90,000Buildings & equipment (net) . 220,000Total assets . . . . . . . . . . . .. . $310,000Liabilities . . . . . . . . . . . . . . . . $ 60,000Common stock . . . . . . . . . . . . . 150,000Retained earnings . . . . . . . . . 100,000Total liabilities and equities . $310,000On May 1, Beasley paid $400,000 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $15,000 in accounts payable for legal and accounting fees.Beasley also agreed to pay $75,000 to the former owners of Donovan contingent on meeting certain revenue goals during the following year. Beasley estimated the present value of its probability adjusted expected payment for the contingency at $20,000. In determining its offer, Beasley noted the following:∙ Donovan holds a building with a fair value…arrow_forwardTrial balancearrow_forward
- Following are data from the statements of two companies selling comparable products: Current Year-End Balance Sheets SunCompany ZengCompany Cash......................................................................................... 119.00 180.00 Notes receivable....................................................................... 77.00 32.00 Accounts receivable, net........................................................... 420.00 640.00 Merchandise inventory.............................................................. 588.00 877.00 Prepaid expenses...................................................................... 16.00 55.00 Plant and equipment, net........................................................... 2,321.00 2,744.00 Total assets...............................................................................…arrow_forwardPresented below is the balance sheet for Sabino Family Dentistry on January 1 of the current year. SABINO FAMILY DENTISTRY Statement of Financial Position (Balance Sheet) January 1, 20__ Assets Liabilities & Shareholders’ Equity Cash $ 33,000 Liabilities: Accounts receivable......... 51,150 Accounts payable .............................. $ 74,250 Land 313,500 Total liabilities................................. $ 74,250 Building........................... 371,250 Equity: Equipment........................ 57,750 Share capital.................................... 752,400 Total liabilities and Total assets....................... $826,650 equity................................................... $826,250 During the…arrow_forwardMoon Corporation JULY 31, 2011Balance sheet July 31, 2011 AssetsLiabilities & Owners’ Equity Cash . . . . . . . . . . . . . . . . $ 18,000Liabilities: Accounts Receivable . . . 26,000Notes Payable Land . . . . . . . . . . . . . . . . 37,200(due in 60 days). . . . . . . . . . . . . $ 12,400 Building. . . . . . . . . . . . . . 38,000Accounts Payable . . . . . . . . . . . . . 9,600 Office Equipment . . . . . . 1,200Total liabilities . . . . . . . . . . . . . . $ 22,000 Stockholders’ equity: Capital Stock . . . . . . . . . $60,000 Retained Earnings. . . . . 38,400 98,400 Total . . . . . . . . . . . . . . . . $120,400 Total . . . . . . . . . . . . . . . . . . . . . . . . . $120,400 STAR CORPORATIONBALANCE SHEET Star Corporation JULY 31, 20112011Balance sheet July 31, 2011 Assets Liabilities & Owners’ Equity Cash . . . . . . . . . . . . . . . . $ 4,800Liabilities: Accounts Receivable . . . 9,600Notes Payable Land . . . . . . . . . . . . . . . . 96,000(due in 60 days). . . . . . . .…arrow_forward
- Following are data from the statements of two companies selling comparable products:Current Year-End Balance Sheets Nike Zing Company CompanyCash............................................................................................. 119.00 180.00Notes receivable ........................................................................... 77.00 32.00Accounts receivable, net ............................................................... 420.00 640.00Merchandise inventory ................................................................. 588.00 877.00Prepaid expenses…arrow_forwardFollowing are data from the statements of two companies selling comparable products:Current Year-End Balance Sheets Nike Zing Company CompanyCash............................................................................................. 119.00 180.00Notes receivable ........................................................................... 77.00 32.00Accounts receivable, net ............................................................... 420.00 640.00Merchandise inventory ................................................................. 588.00 877.00Prepaid expenses .......................................................................... 16.00 55.00Plant and…arrow_forwardThe following annual income statement and statement of retained earnings are prepared for Diaz Corporation. Diaz CORPORATION Profit Statement December 31, 2010 Sales income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000 Service income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,000 Cost of sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000 Costs Salaries, wages, etc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,000 Depreciation and write‑offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Taxes, property . . . . . . . . . . .…arrow_forward
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