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Concept explainers
Preparing financial statements from a
Following are the accounts and balances from the adjusted trial balance of Stark Company. Prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31 and (3)
Notes payable......................... $11,000
Prepaid insurance_____................ 2,500
I rrterest expense______................ 500
Accounts payable _____................ 1,500
Wages payable _______................ 400
Cash................................ 10,000
Wages expense....................... 7,500
Insurance expense.................... 1,800
Stark, Capital......................... 54,800
Services revenue...................... 50,000
Accounts receivable....................._____ 4,000
Utilities expense.......................,..... 1,300
Interest payable.......................,..... 100
Unearned revenue........................... 800
Su pplies expense......................,..... 200
Buildings..............................40,000
Stark, Withdrawals........................... 3,000
Depreciation expense—Buildings.........,..... 2,000
Supplies.................................... 800
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Chapter 3 Solutions
Fundamental Accounting Principles
- Prepare Income Statement, Statement of Retained Earnings and Balance Sheet for the year ended December 31, 2020. KEN HENSLEY ENTERPRISES, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,170 Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,400 Studio supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7,600 Unexpired insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500 Prepaid studio rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4,000 Recording equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Accumulated depreciation: recording equipment. . . . . . . . . . . . . . . .…arrow_forwardPresented below is the balance sheet for Sabino Family Dentistry on January 1 of the current year. SABINO FAMILY DENTISTRY Statement of Financial Position (Balance Sheet) January 1, 20__ Assets Liabilities & Shareholders’ Equity Cash $ 33,000 Liabilities: Accounts receivable......... 51,150 Accounts payable .............................. $ 74,250 Land 313,500 Total liabilities................................. $ 74,250 Building........................... 371,250 Equity: Equipment........................ 57,750 Share capital.................................... 752,400 Total liabilities and Total assets....................... $826,650 equity................................................... $826,250 During the…arrow_forwardThe following are the balance sheet and income statement data of PROSPERITY INC. Balance Sheet Accounts (December 31) Cash Marketable Securities Accounts Receivable-net................ Inventories Land...... Building - net Machinery and Equipment-net............ Other Assets Prepaid Expenses Notes Payable, Trade Accounts Payable, Trade........... Expenses Payable Long Term Notes Due 2025. 15% Preferred Stock, P100 par............. Common Stock, P10 par... Retained Earnings ***********... 20 x 2 Income Statement Accounts Sales... Sales Returns and allowances Inventory, December 31, 20 x 2 Inventory, December 31, 20 x 1... Purchases Selling Expenses..... Additional Information: Dividends paid on preferred stock Dividends paid on common stock Market price per share on common stock P 20 X 2 Working Capital Current Ratio Acid Test Ratio Receivable Turn-over Age of Receivables (use 365 days) Inventory Turn-over Working Capital Turn-over 150,000 850,000 500,000 750,000 500,000 550,000…arrow_forward
- The Trial Balance of BMR Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year.Accounts …… …… …… …… …… …… …… Balances ($) . . . . ||| . . . . Accounts …… …… …… …… …… Balances ($)Accumulated Depreciation-Building…. …… 130000 . . . . ||| . . . . Loss on Sale of Property …. …. …. …. 7680Accumulated Depreciation-Equipment….…. 36000 . . . . ||| . . . . Merchandise Inventory …. …. ……. 230000Additional Paid in Capital-Common Stock.. 233000 . . . . ||| . . . . Mortgage Loan …. …. …. …. …. …… 114000Auditors Fee …. …. …. …. …. …. ….. ….. ….. .. 207000 . . . . ||| . . . . Rent Revenue …. …. …. …. …. …. … 53000Buildings…. …. …. …. …. …. ….. ….. ….. ….. ... 401000 . . . . ||| . . . . Retained Earnings …. …. …. …. …… 52600Cash …. …. …. …. …. …. ….. ….. ….. ….. ….. …. 204340 . . . . ||| . . . . Salaries and Wages Expense …. …. 106000Common Stock ($2 each)…. …. …. …. …. ….. 113000 . . . . ||| . . . . Sales …. …. …. …. …. …. ….. ….. …….…arrow_forwardAt December 31, Rolison Consulting’s financial records show the following selected account information. Service revenue..................... $90,000Rent expense......................... $25,000Salaries expense.................... $54,000Supplies expense..................... $3,000Depreciation expense............... $6,000Retained earnings.................. $52,000 (credit balance)Contributed Capital................. $10,000 (credit balance) After all closing entries are recorded and posted, what is the balance of the contributed capital account?arrow_forwardThe Trial Balance of BMR Limited contained the following accounts (alphabetically) at December 31, 2020, the end of company's fiscal year.Accounts …… …… …… …… …… …… …… Balances ($) . . . . ||| . . . . Accounts …… …… …… …… …… Balances ($)Accumulated Depreciation-Building…. …… 130000 . . . . ||| . . . . Loss on Sale of Property …. …. …. …. 7680Accumulated Depreciation-Equipment….…. 36000 . . . . ||| . . . . Merchandise Inventory …. …. ……. 230000Additional Paid in Capital-Common Stock.. 233000 . . . . ||| . . . . Mortgage Loan …. …. …. …. …. …… 114000Auditors Fee …. …. …. …. …. …. ….. ….. ….. .. 207000 . . . . ||| . . . . Rent Revenue …. …. …. …. …. …. … 53000Buildings…. …. …. …. …. …. ….. ….. ….. ….. ... 401000 . . . . ||| . . . . Retained Earnings …. …. …. …. …… 52600Cash …. …. …. …. …. …. ….. ….. ….. ….. ….. …. 204340 . . . . ||| . . . . Salaries and Wages Expense …. …. 106000Common Stock ($2 each)…. …. …. …. …. ….. 113000 . . . . ||| . . . . Sales …. …. …. …. …. …. ….. ….. …….…arrow_forward
- Notes receivable due in 390 days appear on the a.balance sheet in the current liabilities section b.income statement as an expense c.balance sheet in the noncurrent assets section d.balance sheet in the current assets sectionarrow_forwardWell Company paid Being Company for merchandise with a $4,500, 90-day, 10% note dated December 11. What is the financial statement effect to Being Company at the end of the accounting period on December 31? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable Retained Earnings InterestIncome A) +25 +25 +25 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense B) +25 -25 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense C) -25 -25 -25 d. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY…arrow_forwardPrepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30: Accounts receivable....................... $10,000Accounts payable................................ 18,000Building.............................................. 28,000Cash.................................................. 8,000Notes payable..................................... 45,000Office equipment................................... 12,000R. Perkins, Capital................................ 50,000Trucks............................................... 55,000[Hint: Please follow the balance sheet format. You need to re-organize the order of the account. Remember to include the heading (name of company...etc)]arrow_forward
- The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account Debit Credit Cash........................................................................................................... $ 40,000 Accounts Receivable.................................................................................... 106,000 Prepaid Rent ............................................................................................... 12,800 Note Receivable................................................................................................ 8,000 Merchandise Inventory................................................................................... 54,000 Unexpired Insurance......................................................................................... 4,800 Furniture and…arrow_forwardThe following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account Debit Credit Cash........................................................................................................... $ 40,000 Accounts Receivable.................................................................................... 106,000 Prepaid Rent ............................................................................................... 12,800 Note Receivable................................................................................................ 8,000 Merchandise Inventory................................................................................... 54,000 Unexpired Insurance......................................................................................... 4,800 Furniture and…arrow_forwardThe following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account Debit Credit Cash........................................................................................................... $ 40,000 Accounts Receivable.................................................................................... 106,000 Prepaid Rent ............................................................................................... 12,800 Note Receivable................................................................................................ 8,000 Merchandise Inventory................................................................................... 54,000 Unexpired Insurance......................................................................................... 4,800 Furniture and…arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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