Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.65AP
LO 3,4
(Learning Objectives 3, 4: Evaluate business operations; construct and analyze an income statement, a statement of
Equipment ....................................... | $110,000 | Land ..................................................... | $ 25,000 |
Interest expense ............................... | 10,300 | Note payable ...................... | 99,600 |
Interest payable ............................... | 2,700 | Property tax expense ................. | 7,400 |
Accounts payable ............................. | 26,000 | Rent expense ...................... | 41,200 |
Salary expense .................................. | 108,400 | 84,900 | |
Building ............................................. | 406,000 | Service revenue .................... | 452,600 |
Cash ............... | 44,000 | Supplies ................... | 5,300 |
Common stock ..................................... | 13,800 | Utilities expense ................. | 8,800 |
Beginning retained earnings was $364,600, and dividends declared and paid totaled $107,000 for the year.
Requirements
- 1. Prepare the income statement of Oak Hill Garden Supply, Inc., for the year ended December 31, 2018.
- 2. Prepare the company’s statement of retained earnings for the year.
- 3. Prepare the company’s balance sheet as of December 31, 2018.
- 4. Analyze Oak Hill Garden Supply. Inc., by answering these questions:
- a. Was Oak Hill profitable during 2018? By how much?
- b. Did retained earnings increase or decrease? By how much?
- c. Which is greater, total liabilities or total stockholders’ equity? Who has a greater claim to Oak Hill’s assets: its creditors or its stockholders?
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Chapter 1 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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