ACC 310F Chapter Notes - Chapter 4: Retained Earnings

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blackeagle417

28 Feb 2017

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Income statements - presents the revenues and expenses and resulting net income or net loss for a specific period of time reports the success or profitability of the company"s operations over a specific period of time. Statement of operations, earnings statement, or profit and loss statement. Does not include investment and dividend transactions between the stockholders and the business in measuring net income. Retained earnings statement - summarizes the changes in retained earnings for a specific period of time information provided by this statement indicates the reasons why retained earnings increased or decreased during the period. If there is a net loss, it is deducted with dividends in the retained earnings statement. Balance sheet - reports the assets, liabilities, and stockholders" equity of a company at a specific date. Total assets must equal total liabilities + stockholders" equity. A snapshot of the company"s financial condition at a specific moment in time.

Related Questions

Which of the following statements are correct (Select all that apply):

A. A balance sheet reports on investing and financing activities.

B. An income statement reports on financing activities.

C. The statement of equity reports on changes in the accounts that make up equity.

D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time.

E. A balance sheet reports on a company's assets and liabilities over a period of time

orchidhorse286

Finders Investigative Services is an investigative services firmthat is owned and operated by Stacy Tanner. On June 30, 2016, theend of the fiscal year, the accountant for Finders InvestigativeServices prepared an end-of-period spreadsheet, a part of whichfollows:

Finders InvestigativeServices
End-of-PeriodSpreadsheet
For the Year Ended June30, 2016
	~	Adjusted TrialBalance
Account Title	~	Dr.	Cr.
	~
Cash	~	28,000
Accounts Receivable	~	69,400
Supplies	~	4,500
Prepaid Insurance	~	2,500
Building	~	432,000
Accumulated Depreciation-Building	~		43,400
Accounts Payable	~		11,100
Salaries Payable	~		3,300
Unearned Rent	~		1,700
Common Stock	~		80,000
Retained Earnings	~		293,400
Dividends	~	11,400
Service Fees	~		707,150
Rent Revenue	~		11,400
Salaries Expense	~	522,100
Rent Expense	~	45,600
Supplies Expense	~	10,800
Depreciation Expense-Building	~	7,200
Utilities Expense	~	7,150
Repairs Expense	~	2,700
Insurance Expense	~	2,500
Miscellaneous Expense	~	5,600
	~	1,151,450	1,151,450

Required:

A.	Prepare an income statement forthe year ended June 30, 2016. If a net loss has been incurred,enter that amount as a negative number using a minus sign. Be sureto complete the statement heading. Use the list of Labels andAmount Descriptions for the correct wording of text items otherthan account names. You will not need to enter colons (:) on theincome statement.
B.	Prepare a retained earningsstatement for the year ended June 30, 2016. If a net loss has beenincurred or there has been a decrease in retained earnings, enterthat amount as a negative number using a minus sign. Be sure tocomplete the statement heading. Use the list of Labels and AmountDescriptions for the correct wording of text items.
C.	Prepare a balance sheet as ofJune 30, 2016. Fixed assets must be entered in order according toaccount number. Be sure to complete the statement heading. Use thelist of Labels and Amount Descriptions for the correct wording oftext items other than account names. You will not need to entercolons (:) or the word "Less" on the balance sheet; they willautomatically insert where necessary.

Based upon the end-of-periodspreadsheet, journalize the closing entries.

If Retained Earnings has instead decreased $33,000 after theclosing entries were posted, and the dividends remained the same,what would have been the amount of net income or net loss?

Trying to find out whats the income statement, RetainedEarnings Statement,Balance Sheet, Journal, and 3. IfRetained Earnings has instead decreased $33,000 after the closingentries were posted, and the dividends remained the same, whatwould have been the amount of net income or net loss? If required,use the minus sign to indicate a net loss.

chocolateswan308

Susanâs Consulting experienced the following transactions for2014, its first year of operations, and 2015. Assume that alltransactions involve the receipt or payment of cash.

Transactions for2014

1.	Acquired $65,000by issuing common stock.
2.	Received$115,000 cash for providing services to customers.
3.	Borrowed $18,000cash from creditors.
4.	Paid expensesamounting to $57,000.
5.	Purchased landfor $40,000 cash.

Transactions for2015

Beginningaccount balances for 2015 are:


Cash	$	101,000
Land		40,000
Notes payable		18,000
Common stock		65,000
Retained earnings		58,000

1.	Acquired anadditional $23,000 from the issue of common stock.
2.	Received$133,000 for providing services.
3.	Paid $13,000 tocreditors to reduce loan.
4.	Paid expensesamounting to $72,000.
5.	Paid a $13,500dividend to the stockholders.
6.	Determined thatthe market value of the land is $50,000.

Required
a.	Record the effects of each accounting event under theappropriate headings for each year. Record the amounts of revenue,expense, and dividends in the Retained Earnings column. Provideappropriate titles for these accounts in the last column of thetable. (Enter any decreases to account balances with aminus sign. Select "NA" if there is no effect on the "AccountTitles for Retained Earnings".)

b-1.	Prepare an income statement for each year accounting period.

b-2.	Prepare a statement of changes instockholdersâ equity for each year accounting period.

b-3.	Prepare a year-end balance sheet for eachyear accounting period.

b-4.	Prepare a statement of cash flows for eachyear accounting period. (Amounts to be deducted should beindicated with a minus sign.)

c.	Determine theamount of cash that is in the retained earnings account at the endof 2014 and 2015.

e.	Determine the balance in the Retained Earnings accountimmediately after Event 2 in 2014 and in 2015 are recorded.

blueelk876

ACC 310F Chapter Notes - Chapter 4: Retained Earnings

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