Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.11E
At the beginning of 2018, Artichoke Academy reported a balance in common stock of $150,000 and a balance in
Required:
  1.    Prepare a statement of stockholders’ equity.
  2.    Prepare a balance sheet.
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Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity.
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d) During the year, customer advances of $220,000 were received; $110,000 of this amount was earned by December 31, 2018.
e) A 10% bonds payable of 1,000,000 was issued on December 31, 2018, due on December 31, 2023.
f) Treasury stock of $55,000 has been recorded at cost.
Instructions:For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
At the beginning of 2021, Artichoke Academy reported a balance in common stock of $150,000 and a balance in retained earnings of $50,000. During the year, the company issued additional shares of stock for $40,000, earned net income of $30,000, and paid dividends of $10,000. In addition, the company reported balances for the following assets and liabilities on December 31.Assets                       LiabilitiesCash $ 52,600                Accounts payable $ 9,100Supplies 13,400               Utilities payable 2,400Prepaid rent 24,000            Salaries payable 3,500Land 200,000                 Notes payable 15,000Required: 1. Prepare a statement of stockholders’ equity. 2. Prepare a balance sheet.
A company was organized on January 2, 2018. During the first year of operation, it issued 60,000 shares of $2 par value common stock at a price of $50 cash per share.  On December 31, 2018, reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that the company will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par
Chapter 1 Solutions
Financial Accounting
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