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 1.39BE
LO 4
(Learning Objective 4: Construct an income statement and a statement of
| Payments of cash: | |||
| Acquisition of equipment....... | $200,000 | Cash balance, August 1, 2019…. | $ 0 |
| Dividends …………… | 2,700 | Cash balance, August 31, 2019…. | 6,000 |
| Retained earnings | Cash receipts: | ||
| August 1, 2019…………… | 0 | Issuance (sale) of stock to owners ........................... | 13,700 |
| Retained earnings | |||
| August 31, 2019…………... | ? | Rent expense............................. | 1,800 |
| Utilities expense ………… | 5,800 | Common stock........ | 13,700 |
| Adjustments to reconcile net income to net cash Provided by operations......... | 1,400 | Equipment ………….. | 200,000 |
| Office supplies……………….. | 7,500 | ||
| Accounts payable.................... | 8,900 | ||
| Salary expense................... | 78,100 | Service revenue........................... | 279,900 |
Requirement
1. Prepare the income statement and the statement of retained earnings for Island Coffee Roasters Corporation for the month ended August 31, 2019.
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Students have asked these similar questions
Phina A. Asa Trading gives you the following information for
the year ended December 31,2019
a. Cost of Sales (60% of sales)
Php.
57,600.00
b. Cash sales
?
79,160.00
7,000.00
10,275.00
4,000.00
6,500.00
2,138.00
c.
Cash paid to suppliers
d. Paid taxes
e.
Purchased equipment
f.
Paid dividends
g. Proceeds of loan
Cash, beginning 01/2019
Note: Sales are recorded under cash basis.
What are the firm's days' sales outstanding for 2018 and 2019?
Income Statements ($ in millions)
Balance Sheets ($ in millions)
2018
2019 Assets
2018
2019
$1,265 | Cash
$780 Short-Term investments
$92 | Accounts rec.
Sales Revenue
$1,180
$35
$20
$660
$20
$5
Less: Cost of goods sold
Less: Operating Expenses
Less: Depreciation
Earnings before interest and taxes
Less: Interest paid
$75
190
235
$50 Inventory
$343 Total Current Assets
$40
250
300
$405
$495
$560
$170
$150 | Net fixed assets
990
1,105
Taxable Income
$235
$193
Less: Taxes (40%)
$94
$77 Total assets
$1,485
1,665
Net income
$141
$116 Liabilities and Owner's Equity
Dividends (45%)
Additions to Retained Earnings
$63
$52
2018
2019
$78
$64 Accounts payable
$125
$100
Accruals
$10
$10
Notes payable
35
40
Total Current Liabilities
$170
$150
Long-term debt
598
790
Total Liabilities
$768
$940
Common stock
554
498
Retained earnings
Total Equity
Total liab.& equity
163
$227
717
$725
$1,485
$1,665
IKIBAN INCORPORATED
Comparative Balance Sheets
2021
At June 30
Assets
Cash
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation
Equipment
Total assets
Notes payable (long term)
Total liabilities.
Equity
Common stock, $5 par
value
Retained earnings.
Total liabilities and.
equity
Liabilities and Equity)
Accounts payable
Wages payable
Income taxes payable.
Total current liabilities 39,200
Sales
Cost of goods sold.
Gross profit
$
105,100
71,000
67,800
4,800
248,700
128,000
(29,000)
$
347,700
Cash flows from operating activities
$
29,000
6,400
3,800
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Operating expenses (excluding
depreciation)
Depreciation expense:
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
Cash flows from investing activities
228,000
46,500
$
347,700
Cash flows from financing activities
Net increase (decrease) in cash
Cash balance at prior year-end…
Chapter 1 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 1 - Financial statements can be used by which of the...Ch. 1 - Prob. 2QCCh. 1 - Hoot Enterprises buys a warehouse for 590,000 to...Ch. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - The accounting equation can be expressed as a....Ch. 1 - Prob. 7QCCh. 1 - Alliance Corporation holds cash of 8,000 and owes...Ch. 1 - During the year, ChemClean Corporation has 280,000...Ch. 1 - Prob. 10QC
Ch. 1 - Dynasty Company has current assets of 50,000 and...Ch. 1 - Which financial statement would show how well a...Ch. 1 - On which financial statement would the ending...Ch. 1 - What item flows from the income statement to the...Ch. 1 - What item flows from the income statement to the...Ch. 1 - Prob. 16QCCh. 1 - LO 5 (Learning Objective 5: Identify ethical...Ch. 1 - Prob. 1.1SCh. 1 - Prob. 1.2SCh. 1 - Prob. 1.3SCh. 1 - LO 3 (Learning Objective 3: Apply the accounting...Ch. 1 - LO 3 (Learning Objective 3: Apply the accounting...Ch. 1 - LO 3 (Learning Objective 3: Identify assets,...Ch. 1 - LO 3 (Learning Objective 3: Accounting equation)...Ch. 1 - LO 4 (Learning Objective 4: Identify income...Ch. 1 - LO 4 (Learning Objective 4: Identify appropriate...Ch. 1 - LO 4 (Learning Objective 4: Explain aspects of...Ch. 1 - Prob. 1.11SCh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - (Learning Objective 4: Construct a statement of...Ch. 1 - (Learning Objective 4: Construct a balance sheet)...Ch. 1 - LO 4 (Learning Objective 4: Solve for retained...Ch. 1 - Prob. 1.16SCh. 1 - Prob. 1.17SCh. 1 - Prob. 1.18SCh. 1 - LO 1.2, 3, 4. 5 (Learning Objectives 1, 2, 3, 4,...Ch. 1 - Group A LO 3, 4 (Learning Objectives 3, 4: Apply...Ch. 1 - Which company appears to have the strongest...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Identify financial...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - Prob. 1.29AECh. 1 - Prob. 1.30AECh. 1 - Prob. 1.31AECh. 1 - Prob. 1.32BECh. 1 - Which company appears to have the strongest...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - LO 4 (Learning Objective 4: Identify financial...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - (Learning Objectives 3, 4: Apply the accounting...Ch. 1 - Prob. 1.38BECh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - LO 4 (Learning Objective 4: Construct a balance...Ch. 1 - LO 4 (Learning Objective 4: Construct a statement...Ch. 1 - Prob. 1.42BECh. 1 - LO 4 (Learning Objective 4: Construct an income...Ch. 1 - An organizations investors and creditors will...Ch. 1 - Prob. 1.45QCh. 1 - Prob. 1.46QCh. 1 - Assets are usually reported at their a. appraised...Ch. 1 - Prob. 1.48QCh. 1 - Prob. 1.49QCh. 1 - Prob. 1.50QCh. 1 - Prob. 1.51QCh. 1 - All of the following are current assets except a....Ch. 1 - Prob. 1.53QCh. 1 - Prob. 1.54QCh. 1 - Prob. 1.55QCh. 1 - Prob. 1.56QCh. 1 - Net income appears on which financial...Ch. 1 - Cash paid to purchase a building appears on the...Ch. 1 - The stockholders equity of Kowalski Company at the...Ch. 1 - Prob. 1.60QCh. 1 - Which of the following factors should influence...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Apply the...Ch. 1 - Prob. 1.63APCh. 1 - LO 2, 3, 4 (Learning Objectives 2, 3, 4: Apply...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - LO 3, 4 (Learning Objectives 3,4: Evaluate...Ch. 1 - LO 4 (Learning Objective 4: Construct financial...Ch. 1 - Group B LO 3, 4 (Learning Objectives 3, 4: Apply...Ch. 1 - LO 3,4 (Learning Objectives 3, 4: Apply the...Ch. 1 - Prob. 1.70BPCh. 1 - LO 3,4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - LO 3, 4 (Learning Objectives 3,4: Evaluate...Ch. 1 - Prob. 1.73BPCh. 1 - Prob. 1.74SCCh. 1 - Decision Cases LO 1, 4 (Learning Objectives 1, 4:...Ch. 1 - LO 3, 4 (Learning Objectives 3, 4: Evaluate...Ch. 1 - Prob. 1.77EIC
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