Chapter 1 Financial Statements and Business Decisions 1 Select each item in the following list as an asset A liability L or stockholders equity SE item that would appear on the balance sheet or a revenue R or expense E that would appear on the income statement Categories Financial Statement Items Accounts receivable Cash and cash equivalents Net sales Notes payable Taxes payable Retained earnings Cost of products sold Marketing administrative and other operating expense Income taxes 1 2 3 4 5 6 7 8 9 10 Accounts payable 11 12 Property plant and equipment 13 14 15 Long term debt Inventories Interest expense Land 2 Prepare a balance sheet as of March 31 2011 solving for the missing amount Honda Motor Corporation Balance Sheet As of March 31 2011 Assets Liabilities Stockholders Equity 3 Assume that you are the owner of Campus Connection which specializes in items that interest students At the end of January 2014 you find for January only this information a Sales per the cash register tapes of 150 000 plus one sale on credit a special situation of 2 500 b With the help of a friend who majored in accounting you determine that all of the goods sold during January cost 70 000 to purchase c During the month according to the checkbook you paid 37 000 for salaries rent supplies advertising and other expenses however you have not yet paid the 900 monthly utilities for January on the store and fixtures On the basis of the data given disregard income taxes what was the amount of net income for January Honda Motor Corporation Income Statement For the month of January Net income 4 Clint s Stonework Corporation was organized on January 1 2013 For its first two years of operations it reported the following Required On the basis of the data given prepare a statement of stockholders equity for 2014 Clint s Stonework Corporation Statement of Stockholders Equity For the year ended December 31 2014 Common Stock Retained Earnings 5 Painter Corporation was organized by five individuals on January 1 2013 At the end of January 2013 the following monthly financial data are available No dividends were declared or paid during 2013 Net income Painter Corporation Income Statement For the month of Jan 2013 Painter Corporation Income Statement For the month of Jan 2013 Assets Liabilities Stockholders Equity Chapter 1 Financial Statements and Business Decisions 1 Select each item in the following list as an asset A liability L or stockholders equity SE item that would appear on the balance sheet or a revenue R or expense E that would appear on the income statement Financial Statement Items Accounts receivable Cash and cash equivalents Net sales Notes payable Taxes payable Retained earnings Cost of products sold Marketing administrative and other operating expense Income taxes 1 2 3 4 5 6 7 8 9 10 Accounts payable 11 12 Property plant and equipment 13 14 15 Long term debt Inventories Interest expense Land Categories A A R L L SE E E E L A A L A E 2 Prepare a balance sheet as of March 31 2011 solving for the missing amount Honda Motor Corporation Balance Sheet As of March 31 2011 Assets Cash and cash equivalents Investments Trade accounts notes and other receivables Net property plant and equipment Inventories Other assets Total Assets Liabilities Accounts payable and other current liabilities Long term debt Other liabilities Total liabilities Common stock Retained earnings Stockholders Equity Total stockholders equity Total liabilities and stockholders equity 1 279 640 788 1 939 900 6 025 11 571 3 568 2 043 1 377 6 988 259 4 324 4 583 11 571 3 Assume that you are the owner of Campus Connection which specializes in items that interest students At the end of January 2014 you find for January only this information a Sales per the cash register tapes of 150 000 plus one sale on credit a special situation of 2 500 b With the help of a friend who majored in accounting you determine that all of the goods sold during January cost 70 000 to purchase c During the month according to the checkbook you paid 37 000 for salaries rent supplies advertising and other expenses however you have not yet paid the 900 monthly utilities for January on the store and fixtures On the basis of the data given disregard income taxes what was the amount of net income for January Honda Motor Corporation Income Statement For the month of January Sales revenue Less Cost of Goods sold Gross Profit Less Operational expenses Net income 152 500 70 000 82 500 37 900 44 600 4 Clint s Stonework Corporation was organized on January 1 2013 For its first two years of operations it reported the following Required On the basis of the data given prepare a statement of stockholders equity for 2014 Clint s Stonework Corporation Statement of Stockholders Equity For the year ended December 31 2014 Balance December 31 2013 Add Net income Less Dividends Balance December 31 2014 Common Stock Retained Earnings 100 000 100 000 16 800 42 000 18 700 40 100 5 Painter Corporation was organized by five individuals on January 1 2013 At the end of January 2013 the following monthly financial data are available No dividends were declared or paid during 2013 Painter Corporation Income Statement For the month of Jan 2013 Total revenues Less Total expenses excluding income tax Pretax income Less Income tax expense Net income Painter Corporation Income Statement For the month of Jan 2013 Assets Cash Receivables from customers Merchandise inventory Total assets Cash Payables to suppliers Income taxes payable Total liabilities Common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity Liabilities Stockholders Equity 305 000 189 000 116 000 35 000 81 000 65 150 44 700 94 500 204 350 65 150 25 950 35 000 60 950 62 400 81 000 143 400 204 350
View Full Document
Unlocking...