ACC M115 Lecture Notes - Lecture 12: Net Profit, Income Statement, Financial Statement

26 views2 pages

orangeminnow841

24 Sep 2020

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

The balance sheet shows all assets, liabilities and shareholders" equity accounts at a point in time. The statement (or note) showing changes in retained profits knits" the balance sheet and the income statement together by showing that the net profit is part of the change in the balance sheet over the period. Based on the double-entry accounting system: a set of accounts is created which is in balance (sum of all the debit account balances = sum of all the credit account balances), from these accounts are produced: The income statement, the bottom line (net profit after tax) of which is transferred to. A note to the accounts showing, a statement of retained profits, the bottom line (ending retained profits) of which is transferred to. The balance sheet, which summarises all the accounts. Assets = liabilities + issued capital + opening retained profits + net profit dividends.

Related Questions

Q1.)A journal entry to record revenue could include each of thefollowing, except: A)A credit to a revenue account. B.)A credit tothe Capital Stock account. C.)A debit to Cash. D.)A debit toAccounts Receivable q2.) Unearned revenue appears: A.) As income onthe income statement. B.) As an asset on the balance sheet. C.)As aliability on the balance sheet. D.)As a part of the retainedearnings. Q3.) Retained Earnings at the end of a period: A.)Isequal to the balance in the Retained Earnings account in theadjusted trial balance at the end of a period. B.) Is determined inthe Statement of Retained Earnings. C.)Is equal to RetainedEarnings at the beginning of the period, minus net income (or plusnet loss) for the period.D.) Appears in the Income Statement forthe period.

On December 31, 2016, the accounts inthe ledger of Monroe Entertainment Co. are listed below. Allaccounts have normal balances. At the beginning of the year,retained earning balance is $4,000.

Note Payable due 10/31/2018	$ 10,000
Accounts Receivable	6,000
Accumulated Depreciation- Equipment (Creditbalance)	6,000
Dividends	1,000
Cash	16,000
Depreciation Expense	5,000
Equipment	12,000
Fees Earned	50,000
Rent Expense	6,000
Supplies	2,000
Supplies Expense	3,000
Wages Expense	21,000
Wages Payable	2,000

Q1. Generate the Income statement

Monroe Entertainment Company Income Statement
For the Year Ended December 31, 2016

Revenues:
		S
Total Revenue
Expenses:



Total Expenses:
Net Income		$

Please generate Retained Earnings Statement based uponthe above information and net income youcalculated.

Monroe Entertainment Company

Retained Earnings Statement

For the Year Ended Dec 31, 2016

Retained Earnings at beginning of the year	$___________________
Net Income	_____________________
Less: Dividends	_____________________
Net Increase/(Decrease) in the end	______________________
Retained Earnings at end of the year	$_____________________

Please generate Balance Sheet as of December 31, 2016.

Monroe Entertainment Company Balance Sheet
Dec 31, 2016

Assets		Liabilities
	$		$









Total Assets	$	Total Liabilities and Shareholdersâ Equity	$

blushwasp424

Prepare an income statement, statement of retained earnings, andbalance sheet. To do so you will need to determine the missingamounts for A, B, C, and D. The name of the business is OakManufacturing and the accounting period coincides with the calendaryear. The balance in the Retained Earnings account as of December31, 2015 is $6,600.

Oak Manufacturing
Adjusted Trial Balance
December 31, 20x5
Cash	$ 1,590
Accounts Receivable	3,600
Supplies	60
Prepaid Insurance	60
Office Equipment	6,000
Accumulated Depreciation

orangeeagle418

ACC M115 Lecture Notes - Lecture 12: Net Profit, Income Statement, Financial Statement

Document Summary

Get access

Related Documents

ACC M115 Lecture Notes - Lecture 25: Cash Flow, Historical Cost, Financial Statement

ACC M115 Lecture Notes - Lecture 5: Current Liability

ACC M115 Lecture Notes - Lecture 24: Financial Statement, Operating Lease, Finance Lease

Related Questions