FUNDAMENTALS OF FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260664386
Author: PHILLIPS, LIBB
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1PB
Preparing an Income Statement and
Assume that you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
| Accounts Payable | $33,130 |
| 9,500 | |
| Cash | 13,900 |
| Common Stock | 10,000 |
| Dividends | 1,100 |
| Equipment | 86,000 |
| Notes Payable | 51,220 |
| Operating Expenses | 60,000 |
| Other Expenses | 8,850 |
| Sales Revenue | 94,000 |
| Supplies | 9,000 |
Required:
- 1. Prepare an income statement for the year ended December 31.
- 2. Prepare a statement of
retained earnings for the year ended December 31. - 3. Prepare a balance sheet at December 31.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Income Statement
Goldfinger Corporation had account balances at the end of the current year as follows: sales revenue, $13,600; cost of goods sold, $8,300; operating expenses, $3,200; and income tax expense, $630. Assume
shareholders owned 500 shares of Goldfinger's common stock during the year.
Prepare Goldfinger's income statement for the current year.
GOLDFINGER CORPORATION
Income Statement
For the Year Ended December 31, Current Year
Sales revenue
Need all 11 required answers to the questions, thank you so much! very important assignment so dont worry about the time it takes.
Do within 1 hr
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 a balance sheet for DEFT Corporation using the following balances at the end of December. Accounts Liabilities Expenses Assets Cash Revenues Dividends Total Assets Balances. $ 20,000 35,000 32,000 6,800 42,000 4,000 DEFT Corporation Balance Sheet Total liabilities and stockholders' equityarrow_forwardBaker Company reported total assets at December 31 totaling $56,600. The following selected amounts were taken from Baker Company’s financial statements for its year ending December 31: Retained earnings $33,600 Sales $70,000 Accounts receivable 3,500 Common stock 15,000 Notes payable 8,000 Net income 17,500 How much is the company’s total shareholders’ equity at December 31? Group of answer choices $38,000 $48,600 $10,000 $55,500arrow_forwardYou are provided with the following information for the year 2019 about Al Maha Company for four quarters The company has 5000 shares which is valued at RO 500,000 |Quarter 1 |Quarter 2 |Quarter 3|Quarter 4 Sales Sales returns and allowances Sales discounts Net sales Cost of merchandise sold Gross Margin Salesmen salaries Depreciation on fixed assets Advertising expense Office supplies expense Gain on disposal of assets Interest revenue Interest expense Net Income from operation 225,000 4,000 325,000 480,000 12,500 10,000 ? 2,500 15,000 1,500 435,000 246,000 | 147,000 247,000 42,500 20,000 40,000 18,000 208,750 195,000 103,750 19,000 20,000 6,150 1,750 16,000 10,000 16,500 9,800 11,500 62,500 13,000 500 500 500 57850 600 ? 82,500 36800 Alauddin purchased merchandise of R.O 12,000 from AQA company with the term 2/10, n/30, FOB shipping point. According the shipping term given in the invoice, the transportation cost should be paid by: a. Both companies O b. Alauddin company c. AQA…arrow_forward
- Please help me with show all calculation thankuarrow_forwardAnswer with in 20 minutes for getting multiple upvotes?arrow_forwardWhat is the net income for the current year? Total assets, January 1 P150,000 32,000 Cash balance, December 31 Accounts receivable, December 72,000 31 Cash balance, January 1 26,000 Accounts receivable, January 1 38,000 Collections from customers 420,000 Shareholders' equity, January 1 76,000 Total liabilities, December 31 78,000 Above are the selected information for Bulingon Company for the year: Your answerarrow_forward
- Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $249,400; common stock, $89,000; and retained earnings, $31,607.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 16,500 Short-term investments 9,400 Accrued wages payable 3,600 Accounts receivable, net 30,000 Income taxes payable 3,400 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,500 Common stock 89,000 Plant assets, net 153,300 Retained earnings 62,450 Total assets $ 245,350 Total liabilities and equity $ 245,350 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 452,600 Cost of goods sold 298,050 Gross profit 154,550 Operating expenses 98,800 Interest expense 4,100 Income before taxes 51,650 Income tax…arrow_forwardIncome Statement The accountant for Dolfin Corporation prepared the following income statement. The auditor has asked you to use this statement to provide additional information to Dolfin Corporation on the Final Questions. Dolfin Corporation Income Statement For the Year Ended December 31, 20Y8 Sales $316,840 Expenses: Cost of goods sold $215,451 Selling expenses 41,189 Administrative expenses 34,852 Interest expense 275 Total expenses (291,767) Net income $25,073arrow_forwardAssume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s cash collections from customers would be: Multiple Choice $375,000. $381,000. $366,000. $378,000.arrow_forward
- Following are the income statement and balance sheet items for Faison Corporation from the company’s books and records at the end of fiscal year-end 20x1: ($ millions) Contributed capital $1,702 Cost of sales 13,567 Cash 1,393 Long-term liabilities 3,719 Accounts receivable 2,662 Other current assets 604 Other long-term assets 2,079 Other current liabilities 1,299 Other operating expenses 1,212 Other non-operating expenses 161 Inventory 1,093 Accounts payable 2,595 Property, net 3,216 Retained earnings 1,209 Sales 16,463 Tax expense 256 Equity income, net of tax 34 Other equity 523 Required: Using the information above, prepare the company’s year-end income statement and a balance sheet.arrow_forwardNeed To the Correct answer of this Accounting Questionarrow_forwardSelected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $219,400; common stock, $81,000; and retained earnings, $34,953.) CABOT CORPORATION Balance Sheet December 31 of current year Assets Liabilities and Equity Cash $ 12,000 Accounts payable $ 16,500 Short-term investments 9,000 Accrued wages payable 3,800 Accounts receivable, net 33,200 Income taxes payable 4,700 Merchandise inventory 36,150 Long-term note payable, secured by mortgage on plant assets 71,400 Prepaid expenses 2,800 Common stock 81,000 Plant assets, net 151,300 Retained earnings 67,050 Total assets $ 244,450 Total liabilities and equity $ 244,450 CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 455,600 Cost of goods sold 298,050 Gross profit 157,550 Operating expenses 99,500 Interest expense…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
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