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Exercise 1-24A – Obj. 3, 5
Apply the accounting equation; construct a balance sheet
Student Name
Course Name
Student ID:
Date:
Total revenue ..…..………..…..………..….. $37.9 Investment assets(long term)….…. $135.7
Receivables..…..………..………..…..……… 0.5 Property and equipment, net ….… 1.7
Current liabilities ….………..………..….... 2.6 Other expenses………..…..………... 5.4
Common stock…..…..…..………..……….. 27.7 Retained earnings, beginning..….. 16.8
Interest expense….…..…..………..……….. 0.4 Retained earnings, ending ……..… CALCULATE
Salary and other employee expenses….. 13.6 Cash……………………………………………… 1.6
Long-term liabilities….………..………..….. 102.8 Other assets……………..……….. 10.5
Exercise 1-24A
Instructions
–$
Total stockholders’ equity –$
Total liabilities and
Total assets –$
stockholders’ equity –$
May 31, 2016
Enter account name here
Amounts of the assets and liabilities of Ellen Samuel Realty Company, as of May 31, 2016, are given as follows. Also included
are revenue, expense, and selected stockholders’ equity figures for the year ended on that date (amounts in millions):
Financial Accounting
Test Your Knowledge
Students: Please fill-in areas that are shaded.
Retained earnings
Enter account name here
Construct the balance sheet of Ellen Samuel Realty Company at May 31, 2016. Use the
accounting equation to compute ending retained earnings.
ASSETS
Ellen Samuel Realty Company
BALANCE SHEET (Adapted: Amounts in millions)
Enter account name here
Enter account name here
Enter account name here
Enter account name here
Enter account name here
Enter account name here
Total liabilities
Exercise 1-24A – Obj. 3, 5
Apply the accounting equation; construct a balance sheet
Student Name
Course Name
Student ID:
Date:
Total revenue ……..…………..…………..… $37.9 Investment assets(long term)…….. $135.7
Exercise 1-24A
Instructions
Cash
Receivables
Property and equipment, net
Investment assets
Other assets
Financial Accounting
BALANCE SHEET (Adapted: Amounts in millions)
Amounts of the assets and liabilities of Ellen Samuel Realty Company, as of May 31, 2016, are given as follows. Also
included are revenue, expense, and selected stockholders’ equity figures for the year ended on that date (amounts in
millions):
Test Your Knowledge
Construct the balance sheet of Ellen Samuel Realty Company at May 31, 2016. Use the
accounting equation to compute ending retained earnings.
Ellen Samuel Realty Company
Students: Please fill-in areas that are shaded.
May 31, 2016
ASSETS
LIABILITIES
Receivables…………….…………..…………. 0.5 Property and equipment, net ……. 1.7
Current liabilities ……………………..……. 2.6 Other expenses………..…………….. 5.4
Common stock…………………..………….. 27.7 Retained earnings, beginning……. 16.8
Interest expense……….…………….………. 0.4 Retained earnings, ending ……….. $16.9
Salary and other employee expenses….. 13.6 Cash……………………………………………… 1.6
Exercise 1-25A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Total revenue …….…………….……………. $37.9 Investment assets…………….……… $135.7
Receivables………………….…………….….. 0.5 Property and equipment, net ….... 1.7
Current liabilities ………………………..…. 2.6 Other expenses………………..…….. 5.4
Common stock……………….……………... 27.7 Retained earnings, beginning……. 16.8
Interest expense……………….…………….. 0.4 Retained earnings, ending …..…… CALCULATE
Salary and other employee expenses….. 13.6 Cash……………………………………………… 1.6
Long-term liabilities……….…………….….. 102.8 Other assets………………………. 10.5
Exercise 1-25A
Instructions:
1.
2.
Requirement 1
Total revenue…………………………………………………………………… 37.9
Expenses:
Total expenses……………………………………………………..
Net income ……………………………………………………………………….
Requirement 2
Retained earnngs, beginning of year……………………………………. 16.8
Add: Net income for the year (Req. 1)……………………………….
16.8
Less: Dividends …………………………………………………………………….
Retained earnings, end of year (from Exercise 1-20)………..
This exercise should be used with Exercise 1-24A. Refer to the data of Ellen Samuel Realty Company in Exercise 1-24A.
Construct an income statement and a statement of retained earnings
Prepare the income statement of Ellen Samuel Realty Company for the year ended May 31, 2016.
What amount of dividends did Ellen Samuel declare during the year ended May 31, 2016? ( Hint:
Prepare a statement of retained earnings.)
Financial Accounting
Students: Please fill-in areas that are
shaded.
Statement of Retained Earnings (Amounts in millions )
Test Your Knowledge
Helen Samuel Realty Company
Income Statement (Amounts in millions )
Year Ended May 31, 2016
Solution -Extra Problems Thurs, Nov. 1, 2007
Exercise 1-25A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Exercise 1-25A
Instructions:
1.
2.
Requirement 1
Total revenue…………………………………………………………………… 37.9
Requirement 2
Less: Dividends ……………………………………………………………………. 18.4
Other expenses
Salary and other employee expenses
What amount of dividends did Ellen Samuel declare during the year ended May 31, 2016? ( Hint: Prepare a
statement of retained earnings.)
Students: Please fill-in areas that are
shaded.
Helen Samuel Realty Company
Income Statement (Amounts in millions )
Year Ended May 31, 2016
Financial Accounting
This exercise should be used with Exercise 1-24A. Refer to the data of Ellen Samuel Realty Company in Exercise 1-24A.
Test Your Knowledge
Construct an income statement and a statement of retained earnings
Prepare the income statement of Ellen Samuel Realty Company for the year ended May 31, 2016.
BU 122 ID 5003
Total revenue ………………………………… $37.9 Investment assets……………………. $135.7
Receivables……………………………………. 0.5 Property and equipment, net ……. 1.7
Current liabilities …………………………… 2.6 Other expenses………………………. 5.4
Common stock……………….……………… 27.7 Retained earnings, beginning……. 16.8
Interest expense……………………………… 0.4 Retained earnings, ending ……….. $16.9
Salary and other employee expenses….. 13.6 Cash……………………………………………… 1.6
Exercise 1-26A – Obj. 5
Student Name
Course Name
Student ID:
Date:
Payments of cash: Cash balance, August 31, 2017 0
Acquisition of equipment 200,400 Cash balance, August 31, 2017 5,900$
Dividends 2,300 Cash receipts:
Retained earnings, August 31, 2017 – Issuance (sale) of stock to owners 13,200
Retained earnings, August 31, 2017 CALCULATE Rent expense 1,900
Utilities expense 5,400 Common stock 13,200
Adjustments to reconcile Equipment 200,400$
net income to net cash provided Office supplies 7,500$
by operations 1,500 Accounts payable 9,000
Salary expense 78,400 Service revenue 279,600
Exercise 1-26A
Instructions
Revenue:
Enter account name here . . . . .
Expenses:
Enter account name here . . . . .
Enter account name here . . . . .
Enter account name here . . . . .
Total expenses –
Net income –$
Retained earnings, August 31, 2017 . . . . . . . . . . . . . . .
Add: Net income for the month . . . . . . . . . . . . . . . . –
–
Less: Enter account name here . . . . . . . . . . . . .
Retained earnings, August 31, 2017 . . . . . . . . . . . . . . . –$
STATEMENT OF RETAINED EARNINGS
Month Ended August 31, 2017
Prepare the income statement and the statement of retained earnings of Carson Coffee
Roasters Corp., for the month ended August 31, 2017.
Carson Coffee Roasters Corp.
INCOME STATEMENT
Month Ended August 31, 2017
Financial Accounting
Assume the Carson Coffee Roasters Corp ended the month of August 2017 with these data:
Test Your Knowledge
Carson Coffee Roasters Corp.
Construct an income statement and a statement of retained earnings
Students: Please fill-in areas that are shaded.
Exercise 1-26A – Obj. 5
Student Name
Course Name
Student ID:
Date:
Exercise 1-26A
Instructions
Month Ended August 31, 2017
Carson Coffee Roasters Corp.
Students: Please fill-in areas that are
shaded.
Financial Accounting
Construct an income statement and a statement of retained earnings
Assume the Carson Coffee Roasters Corp ended the month of August 2017 with these data:
Test Your Knowledge
Prepare the income statement and the statement of retained earnings of Carson Coffee
Roasters Corp., for the month ended August 31, 2017.
Carson Coffee Roasters Corp.
INCOME STATEMENT
Month Ended August 31, 2017
Exercise 1-37B, Objs. 3, 5
Student Name
Course Name
Student ID:
Date:
Total revenue ….…….………….…………... $37.2 Investment assets….………….…….. $135.6
Receivables……………….………….…….…. 0.7 Property and equipment, net ……. 1.8
Current liabilities ……….…….………….… 2.1
Other expenses…….…….…………..
5.6
Common stock……..…….………….……... 25.1 Retained earnings, beginning..….. 16.9
Interest expense…..………….………….….. 0.5 Retained earnings, ending ……….. ?
Salary and other employee expenses..… 13.5 Cash……………………………………………… 1.3
Long-term liabilities……….…….………….. 102.1 Other assets (long term)….………… 9.9
Exercise 1-37B
Instructions:
1. Prepare the income statement of David Austin RealtyCompany for the year ended
January 31, 2016.
2. What amount of dividends did David Austin Realty Company declare during the year ended january 31, 2016?
Hint: Prepare a statement of retained earnings.
Requirement 1
Total revenue…………………………………………………………………… 37.2
Expenses:
Total expenses……………………………………………………..
Net income ……………………………………………………………………….
Requirement 2
Retained earnngs, beginning of year……………………………………. 16.9
Add: Net income for the year (Req. 1)……………………………….
16.9
Less: Dividends …………………………………………………………………….
Retained earnings, end of year (from Exercise 1-36B)………..
Statement of Retained Earnings (Amounts in millions )
Test Your Knowledge
David Austin Realty Company
Income Statement (Amounts in millions )
Year Ended January 31, 2016
This exercise should be used with Exercise 1-36B.
Construct an income statement and a statement of retained earnings
Financial Accounting
Students: Please fill-in areas that are
shaded.
Exercise 1-37B, Objs. 3, 5
Student Name
Course Name
Student ID:
Date:
Total revenue …………….………………….. $37.2 Investment assets……………………. $135.6
Receivables……………………………………. 0.7 Property and equipment, net ……. 1.8
Current liabilities ………………….……….. 2.1 Other expenses………………….…… 5.6
Common stock…………..………………….. 25.1 Retained earnings, beginning……. 16.9
Interest expense……………………………… 0.5 Retained earnings, ending ……….. ?
Salary and other employee expenses….. 13.5 Cash……………………………………………… 1.3
Long-term liabilities……………………….… 102.1 Other assets (long term)……………. 9.9
Exercise 1-37B
Instructions:
1. Prepare the income statement of David Austin RealtyCompany for the year ended
January 31, 2016.
2. What amount of dividends did David Austin Realty Company declare during the year ended january 31, 2016?
Hint: Prepare a statement of retained earnings.
Requirement 1
Total revenue…………………………………………………………………… 37.2
David Austin Realty Company
Income Statement (Amounts in millions )
Students: Please fill-in areas that are
shaded.
Year Ended January 31, 2016
Financial Accounting
This exercise should be used with Exercise 1-36B.
Test Your Knowledge
Construct an income statement and a statement of retained earnings
BU 122 ID 5003
Less: Dividends ……………………………………………………………………. 14.5
Salary and other employee expenses
Other expenses
Problem 1-61A, Obj. 4, 5
Student Name
Course Name
Student ID:
Date:
Land………………………….. 27,000$ Equipment…………….……. 119,000$
Note payable………………. 99,500 Interest expense…………… 10,200
Property tax expense …… 7,300 Interest payable …………… 2,500
Rent expense………………. 40,600 Accounts payable ………... 24,000
Accounts receivable…….. 84,600 Salary expense……………. 108,500
Service revenue…………… 457,600 Building…………………….. 401,000
Supplies…………………….. 6,800 Cash………………………….. 41,000
Utilities expense…………. 8,500 Common stock……………. 12,700
Beginning retained earnings was $364,200, and dividends totaled $106,000 for the year.
Financial Accounting
Construct and analyze an income statement, a statement of retained
earnings and a balance sheet; evaluate business operations
The assets and liabilities of Beckwith Garden Supply, Inc., as of December 31, 2016, and revenues and expenses
for the year ended on that date follow.
Students: Please fill-in areas that are shaded.
Problem 1-61A
Instructions
1. Construct the income statement of Beckwith Garden Supply, Inc., for the year ended December 31, 2016.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2016.
4. Analyze Beckwith Garden Supply, Inc., by answering these questions:
a. Was Beckwith Garden Supply profitable during 2016? By how much?
b. Did retained earnings increase or decrease? By how much?
c. Which is greater, total liabilities or total equity? Who has a greater claim of Beckwith Garden
Supply’s assets, creditors of the company or the Beckwith Garden Supply stockholders?
Requirement 1
Revenue
Expenses
Salary expense……………………………………………………. 108,500$
Total expenses…………………………………………………… FORMULA
Net income………………………………………………………………………
Beckwith Garden Supply, Inc.
Test Your Knowledge
Income Statement
Year Ended December 31, 2016
Problem 1-61A
Requirement 2
Retained earnings, beginning of year…………………………………………….. 114,000$
Add: Net income for the year
114,000
Less: Dividends………………………………………………………………………………..
Retained earnings, end of year……………………………………………………….
Requirement 3
Cash 41,000$ Accounts payable 24,000$
Accounts receivable
Total liabilities
Land
Common stock 12,700$
Total stockholders’ equity
Total liabilities and
Total assets FORMULA stockholders’ equity FORMULA
Requirement 4
a
b
c
Beckwith Garden Supply, Inc.
Statement of Retained Earnings
Year Ended December 31, 2016
Beckwith Garden Supply, Inc.
Part b
Part c
Balance Sheet
Year Ended December 31, 2016
ASSETS
LIABILITIES
STOCKHOLDERS‘ EQUITY
Part a
Problem 1-61A, Obj. 4, 5
Student Name
Course Name
Student ID:
Date:
Land……….…………..…….. 27,000$ Equipment……….…………. 119,000$
Note payable………….…… 99,500 Interest expense…………... 10,200
Beginning retained earnings was $364,200, and dividends totaled $106,000 for the year.
Students: Please fill-in areas that are shaded.
Financial Accounting
The assets and liabilities of Beckwith Garden Supply, Inc., as of December 31, 2016, and revenues and expenses
for the year ended on that date follow.
Construct and analyze an income statement, a statement of retained
earnings and a balance sheet; evaluate business operations
Property tax expense …… 7,300 Interest payable …………… 2,500
Rent expense………….…… 40,600 Accounts payable ………… 24,000
Accounts receivable…….. 84,600 Salary expense……………. 108,500
Service revenue…………… 457,600 Building..…………..………. 401,000
Utilities expense…………. 8,500 Common stock……………. 12,700
Problem 1-61A
Instructions
1. Construct the income statement of Beckwith Garden Supply, Inc., for the year ended December 31, 2016.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2016.
4. Analyze Beckwith Garden Supply, Inc., by answering these questions:
a. Was Beckwith Garden Supply profitable during 2016? By how much?
b. Did retained earnings increase or decrease? By how much?
c. Which is greater, total liabilities or total equity? Who has a greater claim of Beckwith Garden
Supply’s assets, creditors of the company or the Beckwith Garden Supply stockholders?
Requirement 1
Revenue
457,600
Service Revenue
Beckwith Garden Supply, Inc.
Year Ended December 31, 2016
Test Your Knowledge
Income Statement
Expenses
Problem 1-61A
Requirement 2
Retained earnings, beginning of year…………………………………………….. 364,200$
Requirement 3
Cash 41,000$ Accounts payable 24,000$
Accounts receivable 84,600 Note payable 99,500
Requirement 4
Balance Sheet
Year Ended December 31, 2016
Year Ended December 31, 2016
Statement of Retained Earnings
Beckwith Garden Supply, Inc.
Beckwith Garden Supply, Inc.
ASSETS
LIABILITIES
Solution
Problem 1-67B, Obj. 4, 5
Student Name
Course Name
Student ID:
Date:
Land……….…………..…….. 28,000$ Equipment……….…………. 111,000$
Note payable………….…… 99,700 Interest expense…………... 10,800
Property tax expense …… 7,900 Interest payable ….……….. 2,300
Rent expense………….…… 40,200 Accounts payable ………… 27,000
Accounts receivable…….. 84,500 Salary expense……………. 108,300
Service revenue…………… 458,600 Building….…………………. 402,000
Supplies…..…………..……. 6,100 Cash…………….……………. 41,000
Utilities expense…………. 8,100 Common stock……………. 3,800
Beginning retained earnings was $364,500, and dividends totaled $108,000 for the year.
Financial Accounting
The assets and liabilities of Blue Moon Products, Inc. as of December 31, 2016, and revenues and expenses
for the year ended on that date follow:
Construct and analyze an income statement, a statement of
retained earnings, and a balance sheet; evaluate business
operations
Students: Please fill-in areas that are
shaded.
BU 122 ID 5003
Solution
Problem 1-67B
Instructions
1. Prepare the income statement of Blue Moon Products, Inc., for the year ended December 31, 2016.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2016.
4. Analyze Blue Moon Products, Inc., by answering these questions:
a. Was Blue Moon profitable during 2016? By how much?
b. Did retained earnings increase or decrease? By how much?
Requirement 1
Revenue
Service revenue…………………………………………………… 458,600$
Expenses
Salary expense……………………………………………………. 108,300$
CELL REF
Total expenses…………………………………………………… FORMULA
Net income………………………………………………………………………
Income Statement
c. Which is greater, total liabilities or total equity? Who owns more of Blue Moon Product’s assets,
creditors of the company or Blue Moons Product’s stockholders?
Year Ended December 31, 2016
Test Your Knowledge
Blue Moon Products, Inc.
BU 122 ID 5003
Solution
Problem 1-66B
Requirement 2
Retained earnings, beginning of year…………………………………………….. 364,500$
Add: Net income for the year
364,500
Less: Dividends………………………………………………………………………………..
Retained earnings, end of year……………………………………………………….
Requirement 3
Cash 41,000$ Accounts payable 27,000$
Accounts receivable
Total liabilities
Land
Common stock 3,800$
Total stockholders’ equity
Total liabilities and
Total assets FORMULA stockholders’ equity FORMULA
Requirement 4
a
b
c
Part c
Blue Moon Products, Inc.
Balance Sheet
Year Ended December 31, 2016
ASSETS
LIABILITIES
STOCKHOLDERS’ EQUITY
Year Ended December 31, 2016
Statement of Retained Earnings
Blue Moon Products, Inc.
Part a
Part b
BU 122 ID 5003
Problem 1-67B, Obj. 4, 5
Student Name
Course Name
Student ID:
Date:
Land………………………….. 28,000$ Equipment………………….. 111,000$
Note payable………………. 99,700 Interest expense…………… 10,800
Property tax expense …… 7,900 Interest payable …………… 2,300
Rent expense………………. 40,200 Accounts payable ………… 27,000
Accounts receivable…….. 84,500 Salary expense……………. 108,300
Service revenue…………… 458,600 Building………………….…. 402,000
Supplies…………………….. 6,100 Cash………………………….. 41,000
Utilities expense…………. 8,100 Common stock……………. 3,800
Beginning retained earnings was $364,500, and dividends totaled $108,000 for the year.
Construct and analyze an income statement, a statement of
retained earnings, and a balance sheet; evaluate business
operations
The assets and liabilities of Blue Moon Products, Inc. as of December 31, 2016, and revenues and expenses
for the year ended on that date follow:
Financial Accounting
Students: Please fill-in areas that are
shaded.
Problem 1-67B
Instructions
1. Prepare the income statement of Blue Moon Products, Inc., for the year ended December 31, 2016.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2016.
4. Analyze Blue Moon Products, Inc., by answering these questions:
a. Was Blue Moon profitable during 2016? By how much?
b. Did retained earnings increase or decrease? By how much?
Requirement 1
Revenue
Service revenue…………………………………………………… 458,600$
Test Your Knowledge
c. Which is greater, total liabilities or total equity? Who owns more of Blue Moon Product’s assets,
creditors of the company or Blue Moons Product’s stockholders?
Blue Moon Products, Inc.
Income Statement
Year Ended December 31, 2016
Expenses
Salary expense……………………………………………………. 108,300$
Problem 1-66B
Requirement 2
Retained earnings, beginning of year…………………………………………….. 364,500$
Requirement 3
Cash 41,000$ Accounts payable 27,000$
Accounts receivable 84,500 Interest payable 2,300
Requirement 4
Statement of Retained Earnings
Year Ended December 31, 2016
Blue Moon Products, Inc.
Blue Moon Products, Inc.
Balance Sheet
Year Ended December 31, 2016
ASSETS
LIABILITIES
Less: Dividends……………………………………………………………………………….. 108,000