FileToolsScreens 9-10 of 2937°FClearView Ch_1_LO 9^J10^J11 In-class SavedQ SearchExercise 1-24B Preparing financial statements and interpreting the information inthose statementsOn January 1, Year 2, the following information was drawn from the accounting records of ZekeCompany: cash of $200; land of $1,800; notes payable of $600; and common stock of $1,000.Requireda. Determine the amount of retained earnings as of January 1, Year 2.b.After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a$300 cash dividend to the stockholders. Can the company pay this dividend? Why or why not?As of January 1, Year 2, what percentage of the assets were acquired from creditors?As of January 1, Year 2, what percentage of the assets were acquired from investors?As of January 1, Year 2, what percentage of the assets were acquired from retained earnings?Create an accounting equation using percentages instead of dollar amounts on the right side of theequation.c.d.e.f.g.During Year 2, Zeke Company earned cash revenue of $500, paid cash expenses of $300, and paida cash dividend of $50. Prepare an income statement, statement of changes in stockholders' equity,a balance sheet, and a statement of cash flows dated December 31, Year 2. (Hint: It is helpful torecord these events under an accounting equation before preparing the statements.)h. Comment on the terminology used to date each statement.i. What is the largest cash dividend that Zeke could pay on December 31, Year 2?j. If on December 31, Year 2, the land had an appraised value of $2,200, how would this affect thefinancial statements?www回(W)OneDriveFocusScreenshot savedThe screenshot was added to yourOneDrive.899:04 PM1/25/2023X140% FileTools View Ch_1_LO 9^J10^J11 In-class SavedEXERCISE 1-24BEXERCISE 1-24B (continued on next page)EXERCISE 1-24B (continued)Screens 11-12 of 2937°FClear+Q Search%EXERCISE 1-24B (continued on next page)www+ Total Assets(W)OneDriveFocus%89回Screenshot savedThe screenshot was added to yourOneDrive.09:04 PM1/25/2023X140%

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View Ch 1 LO 9^J10^J11 In-class Saved H Exercise 1-24B Preparing financial statements and interpreting the information in those statements On January 1, Year 2, the following information was drawn from the accounting records of Zeke Company: cash of $200; land of $1,800; notes payable of $600; and common stock of $1,000. Required a. Determine the amount of retained earnings as of January 1, Year 2. b. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $300 cash dividend to the stockholders. Can the company pay this dividend? Why or why not? As of January 1, Year 2, what percentage of the assets were acquired from creditors? c. d. As of January 1, Year 2, what percentage of the assets were acquired from investors? e. As of January 1, Year 2, what percentage of the assets were acquired from retained earnings? f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. g. During Year 2, Zeke Company earned cash revenue of $500, paid cash expenses of $300, and paid a cash dividend of $50. Prepare an income statement, statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows dated December 31, Year 2. (Hint: It is helpful to record these events under an accounting equation before preparing the statements.) h. Comment on the terminology used to date each statement. i. What is the largest cash dividend that Zeke could pay on December 31, Year 2? j. If on December 31, Year 2, the land had an appraised value of $2,200, how would this affect the financial statements? OneDrive Screenshot saved The screenshot was added to your OneDrive. O X X

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable

Problem 1OYO