A sole proprietorship was started on January 1, 2018, when it received $63,500 cash from Marlin Jones, the owner. During 2018, the company earned $36,500 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $5,700 cash from the business during 2018. Required: Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's 2018 fiscal year.

A sole proprietorship was started on January 1, 2018, when it received $63,500 cash from Marlin Jones, the owner. During 2018, the company earned $36,500 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $5,700 cash from the business during 2018. Required: Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's 2018 fiscal year.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 33P

See similar textbooks

Similar questions

Pina colada company , a sole proprietorship, had following information for 2023: Cash balance , january 1 is $ 20,000 Accounts recivable, january 1 is $ 16,000 Collection from customer during year Is $ 196,000 capital account balance january 1 is $ 41,000 total assets , january 1 is $ 59,000 Cash investment by sole proprietor, july 1 is $ 5,000 Total assets , December 31 is $ 97,000 Cash balance , December 31 is $ 18,000 Accounts recivable, December 31 is $ 37,000 Merchaindise taken for personal use is $ 11,000 total liabilities , December 31 is $ 45,000 please write income statment and net income 2023
Five Incorporated maintains its accounting records using the cash basis but presents financial basis using the accrual method. For the year 2021, Five reported cash basis income of 532,000. Other information are as follows: Accounts Receivable, January 1 300,000 Accounts Receivable, December 31 150,000 Accounts Payable, January 1 400,000 Accounts payable, December 31 320,000 What is the accrual basis net income?
The following list of balances is from the ledger of Mrs. Graver a sole proprietor as at April 30, 2020. Purchases $61,420 Sales $127,245 Stock May 1, 2017 $7,940 Capital May 1, 2017 $25,200 Bank overdraft $2,490 Cash $140 Discount Allowed $2,480 Discount Received $62 Returns inwards $3,486 Returns outwards $1,356 Carriage outwards $3,210 Rent and insurance $8,870 Provision for doubtful debts $630 Fixtures and fittings $1,900 Van $5,600 Debtors $12,418 Creditors $11,400 Drawings $21,400 Wages and salaries $39,200 General office expenses $319 You are required to: Using the following additional information: Increase the provision for doubtful debts by $110. Provide for depreciation as follows: Fixtures and fittings $190; Van $1,400. Prepare an Income Statement for Mrs. Graver for the year ended April 30, 2018 Prepare the statement of financial position as at April 30, 2018
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2018 and 2019. Compute net income for 2019 by comparing total equity amounts for these two years and using thefollowing information: During 2019, the owner invested $35,000 additional cash in the business and withdrew $19,000 cash for personal use.
Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: Grier & Associates Income Statement (Cash Basis) For the Year Ended December 31, 2025 Cash receipts from customers $425,000 Cash payments: Salaries and wages $170,000 Income taxes 65,000 Insurance 40,000 Interest…
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of Robinson Company. Accounts payable Accounts receivable Cash Owner's capital $94,600 72,400 45,700 23,500 W Prepare a balance sheet. (List Assets in order of liquidity.) ROBINSON COMPANY Balance Sheet Assets Liabilities and Owner's Equity $ $ 17 $
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of Robinson Company. Accounts payable Accounts receivable Cash Owner's capital Total Assets Liabilities $94,600 Prepare a balance sheet. (List Assets in order of liquidity.) Owner's Equity 72,400 45,700 23,500 ROBINSON COMPANY Balance Sheet For the Year Ended December 31, 2022 Assets Liabilities and Owner's Equity Total Liabilities and Owner's Equity $ $ $ 118,100 94,600 23,500 118,100
Walters Inc. began operations on January 1, 2019. The following information relates to Walters’cash flows during 2019.Cash received from owners $201,500Cash paid for purchase of land andbuilding 128,700Cash paid for advertising 34,200Cash received from customers 139,800Cash paid to purchase machine $32,000Cash paid to employees for salaries 46,400Cash paid for dividends tostockholders 37,500Cash paid for supplies 28,700Required:1. Calculate the cash provided/used for each cash flow category.2. CONCEPTUAL CONNECTION Comment on Walters’ creditworthiness.
Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2019. Feb. 3 Collected accounts receivable of $18,900. 7 Purchased equipment for $36,800 cash. 11 Paid $3,500 for a 1-year insurance policy. 14 Paid accounts payable of $12,400. 18 Declared cash dividends, $8,500. Additional information:As of February 1, 2019, current assets were $135,000 and current liabilities were $35,400.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.) Current ratio as of February 1, 2019 enter current ratio :1 Feb. 3 enter the current ratio as of February 3 :1 Feb. 7 enter the current ratio as of February 7 :1 Feb. 11 enter the current ratio as of February 11 :1 Feb. 14 enter the current ratio as of February 14 :1 Feb. 18 enter the current ratio as of February 18 :1
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
The company’s financial year end is December 31 each year. They have provided the following information and transactions for 2022: Jan 1. Balances from 2021 – Cash $280,000; Accounts Receivable $125,000; Supplies $105,000; Furniture and Equipment $440,000; Other Creditors $115,000; and Capital $835,000. Jan 2. The following assets were received from Carol Dixon in exchange for capital in the company: cash - $120,000, accounts receivable - $20,500, supplies - $25,050, and office equipment - $100,000. Feb 1. Paid fifteen (15) months’ rent on a lease rental contract, $375,000. Mar 30. Paid the premiums on the property and peril insurance policies, $150,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $200,000. May 5. Purchased additional office equipment on account from DT Company, $60,000. June 6. Received cash from clients on account, $63,000.…
O’Malley Corporation was incorporated and began business on January 1, 2017. It has been successful and now requires a bank loan for additional working capital to finance expansion. The bank has requested an audited income statement for the year 2020. The accountant for O’Malley Corporation provides you with the following income statement which O’Malley plans to submit to the bank. O’Malley CorporationIncome Statement Sales revenue $850,000 Dividends 32,300 Gain on recovery of insurance proceeds from earthquake loss 38,500 920,800 Less: Selling expenses $101,100 Cost of goods sold 510,000 Advertising expense 13,700 Loss on obsolescence of inventories 34,000 Loss on discontinued operations 48,600 Administrative expense 73,400 780,800 Income before income tax 140,000 Income tax 56,000 Net income $ 84,000 Instructions Indicate the deficiencies in the…