Concept explainers
(a)
Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
To prepare: (a) Income statement, retained earnings statement of L Enterprises for the year ended April 30, 2017.
(b)
Classified balance sheet: The main elements of balance sheet assets, liabilities, and
To prepare: (b) Balance sheet of L Enterprises as of April 30, 2017.
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Financial Accounting 8th Edition
- Using the following information, prepare a properly classified Statement of Financial Position for Rabbi’s Company as of December 31, 2020 under: Account Form 1.    ACCRUALS AND OTHER CURRENT LIABILITIES 125,890.00 2.    BONDS PAYABLE 5,000,000.00 3.    CASH AND CASH EQUIVALENTS 2,500,000.00 4.    CURRENT INCOME TAX PAYABLE 589,660.00 5.    INTANGIBLE ASSETS, NET 2,654,700.00 6.    INVESTMENT IN ASSOCIATE 1,890,600.00 7.    INVESTMENT IN PROPERTY 1,968,740.00 8.    INVESTMENT IN EQUITY SECURITIES 3,650,000.00 9.    LONG-TERM NOTES PAYABLE 2,000,000.00 10.MERCHANDISE INVENTORY 2,789,000.00 11.OFFICE AND STORE SUPPLIES 400,000.00 12.OTHER NON-CURRENT ASSET 600,000.00 13.OTHER NON-CURRENT LIABILITIES 750,000.00 14.OWNER’SEQUITY 18,211,250.00 15.PROPERTY PLANT AND EQUIPMENT NET 9,856,250.00 16.PREPAID EXPENSES 385,000.00 17.SHORT TERM NOTES PAYABLE 320,000.00 18.TRADE AND…arrow_forwardPresented below are a number of balance sheet items for Montoya, Inc., for 2019. Unsecured notes payable (long term) 16,00,000 Accumulated depreciation-Equipment $ 292,000 Payroll taxes payable 177,591 Inventory 239,800 Bonds payable 300,000 Rent payable (short-term) 45,000 Discount on bonds payable 15,000 Income tax payable 98,362 Cash 360,000 Rent payable (long-term) 480,000 Land 480,000 Common stock$1 par value 200,000 Notes receivable 445,700 Preferred stock $10 par value 150,000 Notes payable (to banks) 265,000 Prepaid expenses 87,920 Accounts payable 490,000 Equipment 14,70,000 Retained earnings 713,897 Equity Investment (trading-cost) 111,000 Income tax receivable 97,630 Accumulated depreciation-Building 270,200 Goodwill 125,000 Building 16,40,000 Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Fair value of equity investments (trading) is…arrow_forwardThe following is a partial listing of accounts for XYZ, Inc., for the year ended December 31, 2020. Required: Prepare multiple step income statement for the year of 2020. Finished Goods Current Maturities of Long-Term Debt Accumulated Depreciation Accounts Receivable $ 38,872 2,515 19,960 Sales Revenue 6,273 127,260 Treasury Stock 251 Prepaid Expenses 2,199 Deferred Taxes (long-term liability) 8,506 Interest Expense 2,410 Allowance for Doubtful Accounts 915 Retained Earnings 18,951 Raw Materials 9,576 Accounts Payable 19,021 Cash and Cash Equivalents 8,527 Sales Salaries Expense 872 Cost of Goods Sold 82,471 Investment in Unconsolidated 3,559 Subsidiaries Income Taxes Payable 8,356 Work In Process 1,984 Additional Paid-In Capital 9,614 Equipment 41,905 Long-Term Debt 15,258 Rent Income 2,468 Common Stock 3,895 Notes Payable (short-term) 6,156 Income Tax Expense 2,461arrow_forward
- The current sections of Flint Corporation's balance sheets at December 31, 2021 and 2022, are presented here. Flint Corporation's net income for 2022 was $215,900. Depreciation expense was $35,700. Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable Total current liabilities 2022 $52,700 eTextbook and Media 72,250 66,300 14,450 $205,700 $5,100 74,800 $79,900 2021 Adjustments to reconcile net income to $75,650 58,650 52,700 16,150 $203,150 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) $ 13,600 61,200 $74,800 Flint Corporation Partial Statement of Cash Flows $arrow_forwardSouth Sea Baubles has the following (incomplete) balance sheet and income statement.  BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2018 2019 Liabilities and Shareholders' Equity 2018 2019 Current assets $ 97  $ 175  Current liabilities $ 64  $ 81  Net fixed assets  870   970  Long-term debt  635   820    INCOME STATEMENT, 2019 (Figures in $ millions) Revenue $ 1,985  Cost of goods sold  1,065  Depreciation  385  Interest expense  247    a&b. What is shareholders’ equity in 2018 and 2019? c&d. What is net working capital in 2018 and 2019? e. What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2019? g. Net fixed assets increased from $870 million to $970 million during 2019. What must have been South Sea’s gross investment in fixed assets during 2019?arrow_forwardMMT Corporation reports the following income statement items ($ in millions) for the year ended December 31, 2024: sales revenue, $2,195; cost of goods sold, $1,430; selling expense, $210; general and administrative expense, $200; interest expense, $35; and gain on sale of investments, $100. Income tax expense has not yet been recorded. The income tax rate is 25%.arrow_forward
- Presented below are a number of balance sheet items for Monty, Inc. for the current year, 2020. Goodwill  $ 127,990  Accumulated Depreciation-Equipment  $ 292,160 Payroll Taxes Payable  180,581  Inventory  242,790 Bonds payable  302,990  Rent payable (short-term)  47,990 Discount on bonds payable  15,160  Income taxes payable  101,352 Cash  362,990  Rent payable (long-term)  482,990 Land  482,990  Common stock, $1 par value  202,990 Notes receivable  448,690  Preferred stock, $10 par value  152,990 Notes payable (to banks)  267,990  Prepaid expenses  90,910 Accounts payable  492,990  Equipment  1,472,990 Retained earnings  ?  Debt investments (trading)  123,990 Income taxes receivable  100,620  Accumulated Depreciation-Buildings  270,360 Notes payable (long-term)  1,602,990  Buildings  1,642,990 Prepare a classified balance sheet in good form. Common stock authorized was…arrow_forwardDisplayed here are the draft financial statements which have been prepared for Valerie’s business for the year ended 30 April 2021. Draft Statement of Financial Position as at 30 April 2021  Assets    Non-current assets see point a. below   Cost  90,000  Provision for depreciation  30,600  Net Book Value   59,400 Current assets    Inventory  To be advised  Trade receivables  43,200  Cash  4,680 47,880 Total assets   107,280     Liabilities    Current liabilities    Trade payables  17,280  Non-current liabilities    Bank loan  16,000  Total liabilities   33,280 Net assets   74,000     Owner’s interest   Capital invested  24,000 Profit and Loss Reserve:   Opening balance 34,720  Draft profit for the year…arrow_forwardYou are provided with the following information for Oriole Company, effective as of its April 30, 2022, year-end. Accounts payable  $ 870 Accounts receivable  860 Accumulated depreciation—equipment  590 Cash  1,380 Common stock  17,400 Cost of goods sold  1,050 Depreciation expense  360 Dividends  335 Equipment  2,510 Goodwill  1,600 Income tax expense  150 Income taxes payable  160 Insurance expense  360 Interest expense  540 Inventory  940 Investment in land  16,625 Land  2,600 Mortgage payable (long-term)  4,100 Notes payable (short-term)  60 Prepaid insurance  70 Retained earnings (beginning)  1,600 Salaries and wages expense  750 Salaries and wages payable  250 Sales revenue  6,400 Stock investments (short-term)  1,300arrow_forward
- Following are selected accounts for Best Buy, Inc., for the fiscal year ended February 2, 2019. (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). Best Buy, Inc. ($ millions)Amount Classification Sales $42,879 Answer B I  Accumulated depreciation 6,690 Answer B I Depreciation expense  770 Answer B I Retained earnings 2,985 Answer B I  Net income 1,464 Answer B I  Property, plant & equipment, net 2,510 Answer B I  Selling, general and admin expense 8,015 Answer B I Accounts receivable 1,015 AnswerB I  Total liabilities 9,595 Answer B I Stockholders' equity 3,306 Answer B I (b) Using the data, compute total assets and total expenses. Total Assets Answer Total Expenses Answer answer complete and correct and in detail with all workarrow_forwardUsing the following information, prepare a properly classified Statement of Financial Position for Rabbi’s Company as of December 31, 2020 under: Report Form 1.    ACCRUALS AND OTHER CURRENT LIABILITIES 125,890.00 2.    BONDS PAYABLE 5,000,000.00 3.    CASH AND CASH EQUIVALENTS 2,500,000.00 4.    CURRENT INCOME TAX PAYABLE 589,660.00 5.    INTANGIBLE ASSETS, NET 2,654,700.00 6.    INVESTMENT IN ASSOCIATE 1,890,600.00 7.    INVESTMENT IN PROPERTY 1,968,740.00 8.    INVESTMENT IN EQUITY SECURITIES 3,650,000.00 9.    LONG-TERM NOTES PAYABLE 2,000,000.00 10.MERCHANDISE INVENTORY 2,789,000.00 11.OFFICE AND STORE SUPPLIES 400,000.00 12.OTHER NON-CURRENT ASSET 600,000.00 13.OTHER NON-CURRENT LIABILITIES 750,000.00 14.OWNER’SEQUITY 18,211,250.00 15.PROPERTY PLANT AND EQUIPMENT NET 9,856,250.00 16.PREPAID EXPENSES 385,000.00 17.SHORT TERM NOTES PAYABLE 320,000.00 18.TRADE AND OTHER…arrow_forwardSouth Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2021 2022 Liabilities and Shareholders' Equity 2021 2022 Current assets $ 101 $ 195 Current liabilities $ 72 $ 93 Net fixed assets 910 1,010 Long-term debt 655 860 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue $ 2,005 Cost of goods sold 1,085 Depreciation 405 Interest expense 251 f. What is cash provided by operations during 2022? g. Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea’s gross investment in fixed assets during 2022? h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current liabilities?arrow_forward
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