FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
4th Edition
ISBN: 9781259934773
Author: SPICELAND
Publisher: MCG
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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
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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.
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 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31.
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Assets
Liabilities
Cash
$54,400
Accounts payable
$15,600
Supplies
12,700
Utilities payable
6,000
Prepaid rent
33,000
Salaries payable
5,300
Land
290,000
Notes payable
33,000
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Required:
Prepare a statement of stockholders’ equity.
Chapter 1 Solutions
FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
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