PROBLEM 1B-5
OWNER’S EQUITY
Expenses
0
0
0
0
+550
550
550
550
+50
600
600
600
600
+650
1,250
+550
1,800
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Catering
Revenue
0
0
0
+2,200
2,200
2,200
+250
2,450
2,450
2,450
2,450
+2,500
4,950
4,950
4,950
4,950
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
THILDORE’S CATERING SERVICE
J.
Thildore,
Withd
0
0
0
0
0
0
0
0
+120
120
120
120
120
120
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
J.
Thildore,
Capital
+25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Equipment
0
+1,200
+800
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
+1,300
3,300
3,300
3,300
$30,380
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
ASSETS
Accounts
Receivable
0
0
0
0
0
+250
250
(80)
170
170
170
170
170
170
170
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Cash
+25,000
25,000
(1,200)
23,800
(400)
23,400
+2,200
25,600
(550)
25,050
25,050
+80
25,130
(50)
25,080
(120)
24,960
+2,500
27,460
27,460
27,460
(550)
26,910
10/25
BALANCE
10/27
10/28
BALANCE
10/29
BALANCE
11/1
BALANCE
11/5
BALANCE
11/8
BALANCE
11/10
BALANCE
11/15
BALANCE
11/17
BALANCE
11/20
BALANCE
11/25
BALANCE
11/28
BALANCE
11/30
END BAL.
PROBLEM 1B-5 (CONTINUED)
(b)
THILDORE‘S CATERING SERVICE
BALANCE SHEET
OCTOBER 31, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$23
4
0
0
Liabilities
Equipment
2
0
0
0
Accounts Payable
$
4
0
0
Owner’s Equity
J. Thildore, Capital
25
0
0
0
Total Liabilities and
Total Assets
$25
4
0
0
Owner’s Equity
$25
4
0
0
(c)
THILDORE‘S CATERING SERVICE
INCOME STATEMENT
MONTH ENDED NOVEMBER 30, 201X
Revenue:
Catering Revenue
$4
9
5
0
Operating Expenses:
Salaries Expense
$
5
5
0
Telephone Expense
5
0
Rent Expense
6
5
0
Supplies Expense
5
5
0
Total Operating Expenses
1
8
0
0
Net Income
$3
1
5
0
PROBLEM 1B-5(CONCLUDED)
(d)
THILDORE‘S CATERING SERVICE
STATEMENT OF OWNER’S EQUITY
MONTH ENDED NOVEMBER 30, 201X
J. Thildore, Capital, November 1, 201X
$25
0
0
0
Net Income for November
$3
1
5
0
Less: Withdrawals for November
(1
2
0)
Increase in Capital
3
0
3
0
J. Thildore, Capital, November 30, 201X
$28
0
3
0
(e)
THILDORE‘S CATERING SERVICE
BALANCE SHEET
NOVEMBER 30, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$26
9
1
0
Liabilities
Accounts Receivable
1
7
0
Accounts Payable
$2
3
5
0
Equipment
3
3
0
0
Owner’s Equity
J. Thildore, Capital
28
0
3
0
Total Liabilities and
Total Assets
$30
3
8
0
Owner’s Equity
$30
3
8
0
FINANCIAL REPORT PROBLEM SOLUTION—2013 Kellogg’s Annual Report
YEAR
Cash and Cash Equivalents
2013
$273 million
2012
$281 million
Decrease
($8 million)
Cash and cash equivalents decreased $8 million from 2012 to 2013.
ON THE JOB—Smith Computer Center Solution
Expenses
+$500 (Rent)
500
500
500
+75 (Utilities)
575
575
$575
OWNER’S EQUITY
–
–
–
–
–
–
–
Service
Revenue
+$800
800
+600
1,400
1,400
+1,800
3,200
$3,200
+
+
+
+
+
+
Feldman,
Withdrawals
+175
$175
–
–
=LIABILITIES+
Feldman,
+Capital
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
$6,000
$8,725
SMITH COMPUTER CENTER
Accounts
Payable
+
+
+
+
+
+
+
+
+
+$200
200
200
200
200
+75
275
275
$275
=
=
=
=
=
=
=
=
=
=
=
=
Office
Equipment
+$3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
$3,300
$8,725
+
+
+
+
+
+
+
+
+
Computer
Shop Equipment
+$1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
$1,800
+
+
+
+
+
+
+
+
+
+
ASSETS
Supplies
+$200
200
200
200
200
200
200
$200
+
+
+
+
+
+
+
+
Cash
6,000
–1,800
4,200
–3,300
900
900
–500
400
+800
1,200
+600
1,800
1,800
+1,800
3,600
–175
$3,425
BALANCE
b.
BALANCE
c.
BALANCE
d.
BALANCE
e.
BALANCE
f.
BALANCE
g.
BALANCE
h.
BALANCE
i.
BALANCE
j.
END
BALANCE
SMITH COMPUTER CENTER
INCOME STATEMENT
FOR THE MONTH ENDED JULY 31, 201X
Revenue:
Service Revenue
$3
2
0
0
00
Operating Expenses:
Rent Expense
$
5
0
0
00
Utilities Expense
7
5
00
Total Operating Expenses
5
7
5
00
Net Income
$2
6
2
5
00
SMITH COMPUTER CENTER
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 201X
T. Feldman, Capital, July 1, 201X
$
0
00
Investment for July
6
0
0
0
00
Total investment for July
6
0
0
0
00
Net Income for July
$2
6
2
5
00
Less: Withdrawals for July
(1
7
5
00)
Increase in Capital
$2
4
5
0
00
T. Feldman, Capital, July 31, 201X
$8
4
5
0
00
SMITH COMPUTER CENTER
BALANCE SHEET
JULY 31, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$3
4
2
5
00
Liabilities:
Supplies
2
0
0
00
Accounts Payable
$
2
7
5
00
Computer Shop Equipment
1
8
0
0
00
Office Equipment
3
3
0
0
00
Owner’s Equity
T. Feldman, Capital
8
4
5
0
00
Total Liabilities and
Total Assets
$8
7
2
5
00
Owner’s Equity
$8
7
2
5
00