
Concept explainers
Find the missing amounts in the given financial statements.

Answer to Problem 37P
Find the missing amounts in the given financial statements.
2014 | 2015 | 2016 | |
Income Statements | |||
Revenue | $400 | $500 | $800 |
Expense | ($250) | (l) (400) | ($425) |
Net Income (Loss) | (a) $150 | $100 | $375 |
Statements of Changes in Stockholders’ Equity | |||
Beginning Common Stock | $0 | (m) $8,000 | $9,100 |
Plus: Common Stock Issued | (b) 8,000 | 1,100 | 310 |
Ending Common Stock | 8,000 | 9,100 | (s) 9,410 |
Beginning | $0 | $25 | $75 |
Plus: Net Income (Loss) | (c) $150 | $100 | $375 |
Less: Dividends | (d) ($125) | ($50) | ($150) |
Ending Retained Earnings | $25 | (n) $75 | $300 |
Total Stockholders’ Equity | (e) $8,025 | $9,175 | (t) $9,710 |
Balance Sheets | |||
Assets | |||
Cash | (f) $11,000 | (o) $6,650 | (u) $8,050 |
Land | $0 | (p) $5,000 | 2,500 |
Total Assets | $11,000 | $11,650 | $10,550 |
Liabilities | (g) $2,975 | (q) $2,475 | $840 |
Stockholders’ Equity | |||
Common Stock | (h) $8,000 | (r) $9,100 | $9,410 |
Retained Earnings | (i) $25 | $75 | $300 |
Total Stockholders’ Equity | $8,025 | $9,175 | $9,710 |
Total Liabilities and Stockholders’ Equity | $11,000 | $11,650 | $10,550 |
Statements of | |||
Cash Flows From Operating Activities: | |||
Cash Receipts from Customers | (j) $400 | $500 | (v) $800 |
Cash Payments for Expenses | (k) ($250) | ($400) | (w) ($425) |
Net Cash Flows from Operating Activities | $150 | $100 | $375 |
Cash Flows From Investing Activities: | |||
Cash Payments for Land | $0 | ($5,000) | $0 |
Cash receipt from sale of land | $0 | $0 | $2,500 |
Net Cash Flows from investing Activities | $0 | ($5,000) | $2,500 |
Cash Flows From Financial Activities: | |||
Cash Receipts from Loan | $2,975 | $0 | $0 |
Cash Payments to Reduce Debt | $0 | ($500) | (x) ($1,635) |
Cash Receipts from Stock Issue | $8,000 | $1,100 | (y) $310 |
Cash Payments for Dividends | ($125) | ($50) | (z) ($150) |
Net Cash Flows from Financial Activities | $10,850 | $550 | ($1,475) |
Net Change in Cash | $11,000 | ($4,350) | $1,400 |
Plus: Beginning Cash Balance | $0 | $11,000 | $6,650 |
Ending Cash Balance | $11,000 | $6,650 | $8,050 |
Table (1)
Explanation of Solution
Income statement: It is one of the financial statements, which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period.
Statement of stockholder's equity: This statement reports the beginning stockholder's equity and all the changes which led to ending stockholder's equity. Additional capital, net income from income statement is added to and dividends are deducted from beginning stockholder's equity to arrive at the end result, closing balance of stockholder's equity.
Statement of cash flows: it is one of the financial statements which reports the source and application of cash between two balance sheet dates. It shows how the cash is sourced and used for the company’s operating, investing, and financing activities.
Compute the missing amounts:
- a) Compute net income for 2014.
Therefore, net income for 2014 is $150.
- b) Compute common stock issued in 2014.
Therefore, common stock issued in 2014 is $8,000.
- c) Compute net income for 2014.
Net income for 2014 is $150 (refer requirement a).
- d) Compute the dividends for 2014.
Therefore, dividend amount for 2014 is $125.
- e) Compute the total stockholders’ equity.
Therefore, the total stockholders’ equity for 2014 is $8,025.
- f) Compute the cash balance for 2014.
Cash balance for the 2014 is $11,000 (as given in the cash flow statement).
- g) Compute the liabilities amount as on 2014 balance sheet.
Therefore, liabilities amount as on 2014 balance sheet is $2,975.
- h) Compute the common stock amount as on 2014 balance sheet.
Common stock issued during 2014 is $8,000 (refer statement of changes in stockholders’ equity) and there is no beginning balance of common stock. Therefore $8,000 is the common stock amount as on 2014 balance sheet.
- i) Compute the retained earnings as on 2014 balance sheet.
$25 is reported has ending balance of retained earnings in the statement of changes in
- j) Compute the cash receipts from customers.
In the income statement, revenues are $400. As mentioned all transactions are the cash transactions. Thus, the revenues are the cash receipts from the customers.
Therefore, cash receipts from the customers are $400.
- k) Compute the cash payments for expenses.
In the income statement, expenses are $250. As mentioned, all transactions are the cash transactions. Thus, the expenses are reported as cash payments for expenses.
Therefore, cash payments for expenses are $250.
- l) Compute the expenses for 2015.
Therefore, expenses for 2015 are $400.
- m) Compute the beginning common stock for 2015
Ending common stock of 2014 is the beginning common stock of the 2015. Thus, the beginning common stock of 2015 is $8,000.
- n) Compute the ending retained earnings of 2015.
2014’s ending retained earnings $25 is the beginning retained earnings of 2015.
Therefore, ending retained earnings for 2015 is $75.
- o) Compute the cash balance as on 2015 balance sheet.
Cash balance for the 2015 is $6,650 (as given in the cash flow statement of 2015).
- p) Compute the land balance as on 2015 balance sheet.
Therefore, land balance as on 2015 balance sheet is $5,000.
- q) Compute the liabilities as on 2015 balance sheet.
Therefore, liabilities amount as on 2015 balance sheet is $2,475.
- r) Compute the common stock as on 2015 balance sheet.
Ending balance of common stock in the statement of changes in stockholders equity is $9,100. It is reported as a common stock as on balance sheet of 2015
- s) Compute the Ending common stock of 2016’s statement of changes in the stockholders’ equity.
Therefore, ending common stock for 2016 is $9,410.
- t) Compute the total stockholders’ equity as on 2016 balance sheet.
Therefore, the total stockholders’ equity for 2016 is $9,710.
- u) Compute the cash balance for 2016 balance sheet.
Cash balance for the 2016 is $8,050 (as given in the cash flow statement).
- v) Compute the cash receipts from customers.
In the income statement, revenues are $800. As mentioned all transactions are the cash transactions. Thus, the revenues are the cash receipts from the customers.
Therefore, cash receipts from the customers are $800.
- w) Compute the cash payments for expenses.
In the income statement, expenses are $425. As mentioned, all transactions are the cash transactions. Thus, the expenses are reported as cash payments for expenses.
Therefore, cash payments for expenses are $425.
- x) Compute the cash payment to reduce debt in 2016.
Therefore, $1,635 is the cash payment to reduce debt in 2016.
- y) Compute the cash receipt from issue of common stock.
During the 2016, $310 additional common stock issued for cash (refer statements of changes in the shareholders’ equity of 2016).
Therefore, cash receipt from issue of common stock is $310.
- z) Compute the cash payment for dividends.
During the 2016, $150 divided paid for cash (refer statements of changes in the shareholders’ equity of 2016).
Therefore, cash payment for dividend is $150.
Want to see more full solutions like this?
Chapter 2 Solutions
SURVEY OF ACCOUNTING-ACCESS
- Consolidation after Several Years On January 1, 2016, Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams’ shares used in the exchange was $37,500,000. At the time of acquisition, the book value of Baker’s shareholders’ equity was $5,000,000, and the book value of Baker’s building (25-year life) exceeded its fair value by $1,000,000. From the date of acquisition to December 31, 2021, Baker had cumulative net income of $1,300,000. For 2022, Baker reported net income of $300,000. Adams uses the complete equity method to account for its investment in Baker. There is no goodwill impairment loss for the period 2016 through 2021, but there is impairment loss of $100,000 in 2022. Baker declared no dividends during the period 2016–2022. Required Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December 31, 2022. Enter numerical answers using all zeros (do not abbreviate in thousands or in…arrow_forwardGive me the answer in a clear organized table please. Thank you!arrow_forwardGive me the answer in a clear organized table please. Thank you!arrow_forward
- Assess the role of the Conceptual Framework in financial reporting and its influence on accounting theory and practice. Discuss how the qualitative characteristics outlined in the Conceptual Framework enhance financial reporting and contribute to decision-usefulness. Provide examplesarrow_forwardCurrent Attempt in Progress Cullumber Corporation has income from continuing operations of $464,000 for the year ended December 31, 2025. It also has the following items (before considering income taxes). 1. An unrealized loss of $128,000 on available-for-sale securities. 2. A gain of $48,000 on the discontinuance of a division (comprised of a $16,000 loss from operations and a $64,000 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate. Prepare a partial income statement, beginning with income from continuing operations. Income from Continuing Operations Discontinued Operations Loss from Operations Gain from Disposal Net Income/(Loss) CULLUMBER CORPORATION Income Statement (Partial) For the Year Ended December 31, 2025 Prepare a statement of comprehensive income. Net Income/(Loss) $ CULLUMBER CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2025 = Other Comprehensive Income Unrealized Loss of Available-for-Sale Securities ✰…arrow_forwardPlease make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balancearrow_forward
- Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.arrow_forwardBodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.arrow_forwardTorre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.arrow_forward
- Chapter 15 Assignment of direct materials, direct labor and manufacturing overhead Stine Company uses a job order cost system. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 430 $2,500 3,500 $1,900 3,000 431 4,400 $10,400 7,600 $12,500 General use 800 1,200 $11,200 $13,700 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Instructions Prepare summary journal entries to record (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs,arrow_forwardSolve accarrow_forwardSolve fastarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





