Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 15E
Exercise 1-15 Preparing an income statement and a
Mijka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $28,600, (2) paid cash expenses of $13,200, and (3) paid a $1,500 cash dividend to its stockholders. These were the only events that affected the company during 2018.
Required
a. Create an
b. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet dated December 31, 2018, for Mijka Company.
c. Explain why the income statement uses different terminology to date the income statement than is used to date the balance sheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
PROBLEM 1
You have been engaged to prepare audited financial statement figures for BOURNE, Inc. The records are in agreement with the following balance sheet:
Â
BOURNE, INC.
Balance Sheet December 31, 2017
Assets
Â
Liabilities and Capital
Â
Cash
P10,000
Accounts Payable
P10,000
Accounts
12,000
Notes Payable
3,000
receivable
Â
Â
Â
Notes receivable
13,000
Common Stock
20,000
Inventory
25,000
Additional      paid-in
40,000
Â
Â
capital
Â
Equipment- net
   40,000
P100,000
Retained Earnings
   27,000
P100,000
Â
A review of the records of the corporation indicates that the errors and omissions listed in the table below had not been corrected during the applicable years:
Â
Inventory
Inventory
Depreciation
Prepaid
Unearned
Accrued
December
Overstated
Understated
Expense
Expense
Income
Expense
31
Â
Â
Â
Â
Â
Â
2014
---
P6,000
P250
P900
---
P200…
Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Galaxy Corporation.
Galaxy Corporation Balance Sheet
Â
Â
Â
Â
Â
Cash
$656,250
Â
Accounts payable
$1,575,000
Accounts receivable
$2,296,875
Â
Accruals
$984,375
Inventory
$3,609,375
Â
Notes payable
$1,378,125
Total current assets
$6,562,500
Â
Total current liabilities
$3,937,500
Â
Â
Â
Long-term debt
$6,562,500
Â
Â
Â
 Total debt
$10,500,000
Â
Â
Â
Common equity
$2,100,000
Net plant and equipment
$10,937,500
Â
Retained earnings
$4,900,000
Â
Â
Â
 Total equity
$7,000,000
Total assets
$17,500,000
Â
Total liabilities and equity
$17,500,000
Â
During your interview for an introductory-level analyst position at Galaxy Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet.
Net Working Capital
$__________________________Â Â Â
Current Ratio…
Exercises
Exercise 1
When examining the accounts of Tripoli Company, you ascertain that
balances relating to both receivables and payables are included in a single
controlling account (called receivables), which has a P23,050 debit balance.
An analysis of the details of this account revealed the following:
Items
customers
Accounts receivable
Accounts receivable - officers
(current collection expected)
Debit balances-creditors
Expense advances to salespersons
Share capital subscriptions receivable
Accounts payable for merchandise
Unpaid salaries
Credit balance in customer accounts
Cash received in advance from customers for goods
not yet shipped
Expected bad debts, cumulative
Debit
P40,000
2,500
450
1,000
4,600
Credit
P 19,250
3,300
2,000
450
500
Required:
1. Give the journal entry to eliminate the above account and to set up the
appropriate accounts to replace it.
2.
How should the items be reported on Tripoli Company's statement of
financial position?
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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
- Cycle Project i The generunouyer or une nuumpury, cursuruny company, assumuury 1, aver, Lummen Tonering aa Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 50 The following is a summary of the transactions for the year: a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,100. c. Issued shares of common stock in exchange for $16,500 in cash. d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,800. f. Purchased equipment for $19,000 in cash. g. Paid $3,300 in cash dividends to shareholders. Additional information: h. Accrued salaries at year-end amounted to $995. i. Depreciation for the year on the equipment is $3,200. S Debits $ 28,400 18,500 32,000 E $ 78,900 D Required: 1 to 3. Prepare a general journal entry for each…arrow_forwardGiven the ledger accounts of Devrij Company as of January 31, 2020: Cash $26,400 Accounts Payable $9,000 Supplies Share Capital-Ordinary 15,600 6,600 Rent Expense 16,800 Accounts Receivable 13,200 Notes Payable 7,200 Service Revenue 31,200 Required: 1. Compute the total of the debit side of the trial balance. (show your computation). 2. Compute the total of the credit side of the trial balance. (show your computation)arrow_forwardces The chief accountant for Grandview Corporation provides you with the company's 2024 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the company's comparative balance sheets. These financial statements are shown next ($ in millions). Cash Flows from Operating Activities: Collections from customers GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2024 Payment to suppliers Payment of general and administrative expense Payment of income taxes Net cash flows from operating activities Cash Flows from Investing Activities: Sale of investments Cash Flows from Financing Activities: Issuance of common stock Payment of dividends Net cash flows from financing activities Net increase in cash GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2024 Sales revenue Cost of goods sold Gross profit Operating expenses: General and administrative expense Depreciation expense Total operating…arrow_forward
- Financial information related to the corporation of Ebony Interiors for February and March 2018 is as follows:  February 28, 2018 March 31, 2018 Cash 137,300  233,000  Accounts receivable 77,800  89,400  Supplies 6,900  5,700  Accounts payable $35,200  $38,000  Common stock 130,000  130,000  Retained earnings ?  ?  a.  Prepare balance sheets for Ebony Interiors as of February 28, 2018. Ebony InteriorsBalance SheetFebruary 28, 2018arrow_forwardUse the following information to answer Exercises E1-34 through E1-36 The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained earnings was $39,000 at the beginning of the year. At year end, common stock was $13,000 and dividends were $57,000, Preparing the income statement Prepare the income statement for Damon Design Studio for the year ending December 31, 2018arrow_forwardQuestion 1 The following are financial statements of Crane Company. Crane CompanyIncome StatementFor the Year Ended December 31, 2022 Net sales  $2,192,500 Cost of goods sold  1,010,500 Selling and administrative expenses  900,500 Interest expense  78,000 Income tax expense  62,500 Net income  $ 141,000 Crane CompanyBalance SheetDecember 31, 2022 Assets   Current assets     Cash  $ 55,100   Debt investments  89,000   Accounts receivable (net)  168,400   Inventory  236,500    Total current assets  549,000 Plant assets (net)  572,500 Total assets  $ 1,121,500 Liabilities and Stockholders’ Equity   Current liabilities     Accounts payable  $ 152,000   Income taxes payable  31,000    Total current liabilities  183,000 Bonds payable  220,740    Total liabilities  403,740 Stockholders’ equity     Common stock  345,000   Retained earnings  372,760…arrow_forward
- mework Assignment i Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity RELETEORRE Interest expense Income tax expense Total costs and expenses Net income KEREKE Earnings per share DENNE SLAP BOGATE Current Year For both the current year and one year ago, compute the following ratios: $ 32,893 100, 248 123,571 10,593 307,446 $574,751 monosokom. $ 144,544 105,892 162,500 161,815 $574, 751 $ 455,777 231, 625 12,702 9,713 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year…arrow_forwardCurrent Attempt in Progress Your examination of the records of a company that follows the cash basis of accounting tells you that the company's reported cash- basis earnings in 2022 are $30,500. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances. 2022 $3,800 Accounts receivable Supplies on hand Unpaid wages owed 2,160 2,340 Other unpaid expenses 1.430 1.340 2021 $2,900 1,380 1.550 Determine the company's net earnings on an accrual basis for 2022. Net earnings on an accrual basis for 2022 sarrow_forwardInstructions: Present the solutions, with appropriate supporting calculations, for each of the following independent problems.  A.Given the following information, compute 2017net income for Orson Company. Stockholders’ equity—January 1, 2017$120,000 Stockholders’ equity—December 31, 2017150,000 Stockholder investments during 201725,000 Dividends paid during 201738,000  B.Indicate the impact on the accounting equation of each of the following transactions.Item 0 is given as an example.  0.Paid dividends to stockholders. Ans.; Decreased assets and decreased stockholders’ equity 1.Stockholder investment of cash. 2.Purchase of equipment for cash 3.Borrowed money from bank by issuing a note payable. 4.Purchase of office furniture for cash. 5.Purchase of supplies on account. 6.Collect cash from customers for services performed. 7.Paid for a 24-month insurance policy 8.Paid monthly payroll.   A.Ending stockholders’ equity, 12/31/17....................$150,000 Beginning stockholders’…arrow_forward
- Q.3= REMAINING PARTS.... Use the following selected financial information for Cascabel Corporation to answer questions Cascabel Corporation Balance Sheet , December 31, 2015  Assets                         Liabilities and stockholders' equity  Current assets                                                          Current liabilities            Cash     2                               Accounts payable                  36            Short-term investments 10    Accrued liabilities                 25            Accounts receivable    52     Total current liabilities      61     Inventory    57                           Other current assets    8       Long-term debt         102 Total current assets         129     Total liabilities         163                                  Long-term assets                    Stockholders'…arrow_forwardQ.3= Use the following selected financial information for Cascabel Corporation to answer questions Cascabel Corporation Balance Sheet , December 31, 2015  Assets                         Liabilities and stockholders' equity  Current assets                                                          Current liabilities            Cash     2                               Accounts payable                  36            Short-term investments 10    Accrued liabilities                 25            Accounts receivable    52     Total current liabilities      61     Inventory    57                           Other current assets    8       Long-term debt         102 Total current assets         129     Total liabilities         163                                  Long-term assets                    Stockholders' equity…arrow_forwardQuestion Content Area Comprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2016: Balance SheetJanuary 1, 2016 Assets   Liabilities and Shareholders' Equity  Cash $ 1,000  Accounts payable $ 4,000 Accounts receivable (net) 3,900  Salaries payable 1,100 Inventory 4,700  Total Liabilities $ 5,100 Land 9,800  Common stock, $10 par 13,500 Buildings and equipment 68,900  Additional paid-in capital 11,200 Less: Accumulated depreciation (14,100)  Retained earnings 44,400 Total Assets $ 74,200  Total Liabilities and Shareholders' Equity $74,200 At the end of 2016, Mills prepared the following statement of cash flows: Statement of Cash FlowsFor Year Ended December 31, 2016 Operating Activities:      Net income $ 5,400     Adjustments for differences between income flowsand cash flows from operating activities:      Add: Depreciation expense 1,900        Decrease in…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License