42
E2–16, Concluded
ABBY’S INTERIORS
Balance Sheet
November 30, 20Y6
Assets
Cash ……………………………………………………………………… $175,000
b. Retained earnings, November 30, 20Y6 ……………………………………… $410,000
43
E2–17
BIG MOUNTAIN REALTY INC.
Income Statement
For the Month Ending June 30, 20Y9
Revenues:
Sales commissions ………………………………………………… $ 90,000
E2–18
BIG MOUNTAIN REALTY INC.
Statement of Stockholders’ Equity
For the Month Ending June 30, 20Y9
Common Stock Retained Earnings Total
Balances, June 1, 20Y9 ……………… $ 0 $ 0 $ 0
44
E2–19
BIG MOUNTAIN REALTY INC.
Balance Sheet
June 30, 20Y9
Assets
Cash …………………………………………………………………………… $ 43,000
E2–20
BIG MOUNTAIN REALTY INC.
Statement of Cash Flows
For the Month Ending June 30, 20Y9
Cash flows from operating activities:
45
E2–21
a. Decrease in assets and decrease in stockholders’ equity.
E2–22
a. operating section
g. operating section
46
PROBLEMS
P2–1
1.
Statement of Balance Sheet Income
Cash Flows Assets =Liabilities +Stockholders’ Equity Statement
Notes Common Retained
Cash +Land =Payable +Stock + Earnings
a. Issued common stock 60,000 60,000
b. Issued note payable 100,000 100,000
Balances 160,000 100,000 60,000
Statement of Cash Flows Income Statement
47
P2–1, Continued
3. STANLEY INSURANCE INC.
Income Statement
For the Month Ending July 31, 20Y5
Revenues:
Fees earned ………………………………………………………. $ 30,000
Expenses:
STANLEY INSURANCE INC.
Statement of Stockholders’ Equity
For the Month Ending July 31, 20Y5
Common Stock Retained Earnings Total
Balances, July 1, 20Y5 ………….. $ 0 $ 0 $ 0
4. STANLEY INSURANCE INC.
Balance Sheet
July 31, 20Y5
Assets
Cash ………………………………………………………………………. $ 51,500
48
P2–1, Concluded
5. STANLEY INSURANCE INC.
Statement of Cash Flows
For the Month Ending July 31, 20Y5
Cash flows from operating activities:
Cash receipts from operating activities ………………. $ 30,000
49
P2–2
1. UP-DATE COMPUTER SERVICES
Income Statement
For the Month Ended August 31, 20Y4
Fees earned ……………………………………………………………. $27,000
Operating expenses:
2. UP-DATE COMPUTER SERVICES
Statement of Stockholders’ Equity
For the Month Ended August 31, 20Y4
Common Stock Retained Earnings Total
Balances, Aug. 1, 20Y4 …………. $ 0 $ 0 $ 0
3. UP-DATE COMPUTER SERVICES
Balance Sheet
August 31, 20Y4
Assets
Cash ………………………………………………………………………. $10,000
50
P2–2, Concluded
4. UP-DATE COMPUTER SERVICES
Statement of Cash Flows
For the Month Ended August 31, 20Y4
Cash flows from operating activities:
Cash receipts from operating activities ………………. $27,000