Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.2BPR
Financial statements
The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:
| Accounts payable | $ 75,000 |
| 210,000 | |
| Cash | 156,000 |
| Common stock | 35,000 |
| fees earned | 875,000 |
| Miscellaneous expense | 15,000 |
| Rent expense | $ 75,000 |
| Supplies | 9,000 |
| Supplies expense | 12,000 |
| Taxes expense | 10,000 |
| Utilities expense | 38,000 |
| Wages expense | 525,000 |
Common stock was $25,000 and
Instructions
- 1. Prepare an income statement for the year ended April 30, 20Y7.
- 2. Prepare a statement of stockholders’ equity for the year ended April 30, 20Y7.
- 3. Prepare a
balance sheet as of April 30, 20Y7. - 4. What item appears on both the income statement and statement of stockholders’ equity?
Expert Solution & Answer
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Selected financial data for Wilmington Corporation is presented below.
WILMINGTON CORPORATION
Balance Sheet
As of December 31
Year 7
Year 6
Current Assets
Cash and cash equivalents
$ 634,527
$ 335,597
Marketable securities
166,106
187,064
Accounts receivable (net)
284,226
318,010
Inventories
466,942
430,249
Prepaid expenses
60,906
28,060
Other current assets
83,053
85,029
Total Current Assets
1,695,760
1,384,009
Property, plant and equipment
1,384,217
625,421
Long-term investment
568,003
425,000
Total Assets
$3,647,980
$2,434,430
Current Liabilities
Short-term borrowings
$ 306,376
$ 170,419
Current portion of long-term debt
155,000
168,000
Accounts payable
279,522
314,883
Accrued liabilities
301,024
183,681
Income taxes payable
107,509
196,802
Total Current Liabilities
1,149,431…
Bill Inc.'s last year financial statements are shown below:
Bill Inc. Balance Sheet as of December 31
Cash
$ 90,000
Accounts payable
$ 180,000
Receivables
180,000
Notes payable
78,000
Inventory
360,000
Accruals
90,000
Total current assets
$630,000
Total current liabilities
$ 348,000
Common stock
900,000
Net fixed assets
720,000
Retained earnings
102,000
Total assets
$1,350,000
Total liabilities and equity
$1,350,000
Bill Inc. Income Statement for December 31
Sales
$1,800,000
Operating costs
1,639,860
EBIT
$ 160,140
Interest
10,140
EBT
$ 150,000
Taxes (40%)
60,000
Net income
$90,000
Dividends (60%)
$ 54,000
Addition to retained earnings
$ 36,000
Suppose that next year's sales will increase by 20 percent over last year's sales. Construct the pro forma financial statements using the percent of sales method. Assume the firm…
Selected financial data for Wilmington Corporation is presented below.
WILMINGTON CORPORATION
Balance Sheet
As of December 31
Year 7
Year 6
Current Assets
Cash and cash equivalents
$ 634,527
$ 335,597
Marketable securities
166,106
187,064
Accounts receivable (net)
284,226
318,010
Inventories
466,942
430,249
Prepaid expenses
60,906
28,060
Other current assets
83,053
85,029
Total Current Assets
1,695,760
1,384,009
Property, plant and equipment
1,384,217
625,421
Long-term investment
568,003
425,000
Total Assets
$3,647,980
$2,434,430
Current Liabilities
Short-term borrowings
$ 306,376
$ 170,419
Current portion of long-term debt
155,000
168,000
Accounts payable
279,522
314,883
Accrued liabilities
301,024
183,681
Income taxes payable
107,509
196,802
Total Current Liabilities
1,149,431…
Chapter 1 Solutions
Corporate Financial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of stockholders equity Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Statement of stockholders equity Financial...Ch. 1 - Income statement Inuring Services was organized on...Ch. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty was organized...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - A Financial statements Seth Feye established...Ch. 1 - Transactions, financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Prob. 1CPCh. 1 - Prob. 1.1MADCh. 1 - Analyze The Home Depot for three years The Home...Ch. 1 - Analyze Lowes for three years Lowes Companies,...Ch. 1 - Compare The Home Depot and Lowes Using your...Ch. 1 - Compare Papa Johns and Yum! Brands The following...Ch. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.2TIFCh. 1 - Prob. 1.4TIFCh. 1 - Net income On January 1, 20Y5, Dr. Marcie Cousins...Ch. 1 - Prob. 1.6TIF
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