Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
8
E1–16
a. MONTANA INTERIORS
Balance Sheet
October 31, 20Y8
Assets
Cash ................................................................................. $110,000
MONTANA INTERIORS
Balance Sheet
November 30, 20Y8
Assets
Cash ................................................................................. $ 140,000
9
E1–16, Concluded
b. Retained earnings, November 30 ........................................................ $ 153,000
E1–17
E1–18
1. c—financing activity
6. b—investing activity
E1–19
10
E1–20
LOONEY INC.
Statement of Cash Flows
For the Month Ended July 31, Year 1
Cash flows from operating activities:
E1–21
Situation 1: The income statement of Dell would provide the most useful informa-
Situation 2: The statement of cash flows would be a primary focus to determine
Situation 3: A current balance sheet would be a primary focus to determine
11
E1–21, Concluded
Situation 4: The income statements of Sears and JCPenney would provide the
most useful information on which company’s business emphasis is working best
E1–22
1. BS
6. IS
11. IS
12
E1–23
AMAZON.COM INC.
Income Statement
For the Year Ended December 31
(in Millions)
Revenues:
E1–24
1. BS
6. IS
11. IS, RE
16. IS
13
E1–25
1. All financial statements should contain the name of the business in their
2. The income statement, retained earnings statement, and statement of cash
5. On the income statement, the total operating expenses are incorrectly sub-
6. On the statement of stockholders’ equity, the common stock issued during
the month should be shown in the Common Stock column. The dividends
14
E1–25, Continued
Corrected financial statements appear as follows:
OUTLAW REALTY
Income Statement
For the Month Ended August 31, 20Y7
OUTLAW REALTY
Statement of Stockholders’ Equity
For the Month Ended August 31, 20Y7
Common Stock Retained Earnings Total
Balances, August 1, 20Y7 .............. $ 0 $ 0 $ 0
Issuance of common stock ............ 100,000 100,000
OUTLAW REALTY
Balance Sheet
August 31, 20Y7
Assets
Cash ....................................................................................... $ 51,600
15
E1–25, Concluded
OUTLAW REALTY
Statement of Cash Flows
For the Month Ended August 31, 20Y7
Cash flows from operating activities:
Cash received from customers ......................................... $327,200
E1–26
1. G
6. D
E1–27
1. C
5. B
9. X
16
PROBLEMS
P1–1
1. GLACIER TRAVEL SERVICE
Income Statement
For the Year Ended September 30, 20Y6
Fees earned ..................................................................... $900,000
Operating expenses:
2. GLACIER TRAVEL SERVICE
Statement of Stockholders’ Equity
For the Year Ended September 30, 20Y6
Common Stock Retained Earnings Total
Balances, Oct. 1, 20Y5 .............. $50,000 $150,000 $200,000
3. GLACIER TRAVEL SERVICE
Balance Sheet
September 30, 20Y6
Assets
Cash ................................................................................. $166,000
