FUNDAMENTALS OF FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260664386
Author: PHILLIPS, LIBB
Publisher: MCG
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Textbook Question
Chapter 4, Problem 15ME
Reporting a Statement of
Refer to M4-14. Prepare a statement of retained earnings for the year.
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Students have asked these similar questions
Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2
Mahomes Co. reported the following data at the end of its first year of operations on December 31.
Cash
$ 9,000
10,000
Accounts receivable
Equipment
12,000
Land
43,000
Accounts payable
6,000
Common stock
30,000
Dividends
25,000
Net income
63,000
(a) Prepare its year-end statement of retained earnings.
(b) Prepare its year-end balance sheet, using retained earnings calculated in part a.
How are open encumbrances at year-end reported in the financial statements?
What is an appropriate date format for a financial statement heading?
Statement of Retained Earnings-At December 31
Statement of Earnings (income statement) -At December 31
Statement of Financial Position (balance sheet) - For the Year Ended June 30
O Statement of Earnings (income statement) - For the Year Ended December 31
Chapter 4 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Prob. 1MECh. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Statement of Retained Earnings Refer...Ch. 4 - Prob. 16MECh. 4 - Recording Closing Journal Entries Refer to the...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 20MECh. 4 - Prob. 21MECh. 4 - Prob. 22MECh. 4 - Prob. 23MECh. 4 - Prob. 24MECh. 4 - Prob. 25MECh. 4 - Prob. 26MECh. 4 - Prob. 1ECh. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Recording Adjusting Journal Entries Refer to E4-6....Ch. 4 - Recording Typical Adjusting Journal Entries...Ch. 4 - Determining Accounting Equation Effects of Typical...Ch. 4 - Determining Adjusted Income Statement Account...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Analyzing the Effects of Adjusting Journal Entries...Ch. 4 - Reporting an Adjusted Income Statement Dyer, Inc.,...Ch. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 18ECh. 4 - Analyzing, Recording, and Summarizing Business...Ch. 4 - Preparing Adjusting Entries, an Adjusted Trial...Ch. 4 - Preparing an Adjusted Trial Balance, Closing...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3CPCh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3PACh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 2COPCh. 4 - Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
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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
- How do we date our financial statements? a Income Statement Specific date; Statement of Retained Earnings and Balance Sheet: Period of time. b Income Statement Specific period of time; Statement of Retained Earnings and Balance Sheet: Specific date c Income Statement and Statement of Retained Earnings: Specific date; Balance Sheet: Period of time. d Income Statement and Statement of Retained Earnings: Period of time; Balance Sheet: Specific date.arrow_forwardQUESTION 2 The following is the Trial Balances extracted from the books of Rosemary Garden Enterprise as at 31 December 2021: Debit (RM) Credit (RM) 153,900 Capital Drawings 3,500 Sales 400,000 Purchases 250,000 Return Inwards and outwards 4,150 450 Inventory as at 1 January 2021 Delivery van at cost Office equipment at cost Accumulated depreciation at 1 January 2021 Delivery van Office equipment 65,000 20,000 36,000 4,500 10,800 Account Receivable 90,000 Account Payable 32,000 Insurance on machinery 750 Allowance for doubtful debts as at 1 January 2021 1550 Discount allowed and discount received 350 800 Stationery General expenses Rental expense 300 2,200 3,300 Interest on loan 5,600 Cash in hand 4,250 Cash at bank Carriage inwards Wages and salaries expenses 10% Long term investment 8% Loan from Tekun 9,000 1,500 16,100 162,000 70,000 674,000 TOTAL 674,000 Additional information: a) The closing inventory as at 31 December 2021 is RM 30,000. b) The amount of a debtor of RM750 is to be…arrow_forwardWhat amounts did Target report for the following items for the year ended January 30, 2016?a. Total Revenuesb. Income from current operationsc. Net income or net lossd. Total assetse. Total equityarrow_forward
- How do you prepare annual financial statements?arrow_forwardThe cumulative effect of an accounting change should generally be reported as an adjustment to the beginning balance of retained earnings in tin period in which the change is made for a:arrow_forwardThe __________ represents the sequence of steps in the accounting process. a. fiscal year b. fiscal period c. accounting cycle d. work sheetarrow_forward
- A prior period adjustment should be reflected, net of applicable income taxes, in the financial statements of a business entity in the: a. retained earnings statement after net income but before dividends b. retained earnings statement as an adjustment of the opening balance c. income statement after income from continuing operations d. income statement as part of income from continuing operationsarrow_forwardRequired: Prepare a statement of profit or loss for the year ending 31 May 2016 and a statement of financial position as at that date.arrow_forwardThe liability for a dividend is recorded on which of the following dates? a.last day of the fiscal year b.date of declaration c.date of payment d.date of recordarrow_forward
- the retained earnings for the end of a year should be calculated as the retained earnings at the end of the previous year minus earnings retained for the year. TRUE OR FALSE?arrow_forwardThe retained earnings statement should be prepared a. before the income statement and balance sheet b. after the income statement and before the balance sheet C. before the income statement and after the balance sheet d. after the income statement and balance sheetarrow_forwardWhen do we use the Income Summary Account? O A. At the beginning of the financial year to close net income/net loss В. At the end of the financial year to close net income/ net loss C. At the end of the financial year to close gain/loss O D. At the beginning of the financial year to close gain/lossarrow_forward
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