ACC 100 Lecture Notes - Financial Statement, Balance Sheet, Income Statement

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apricotspider47

17 Aug 2013

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There are four statements: income statement, statement of changes in equity, balance sheet, statement of cash flows. Income statement report on performance over a period of time. Reports revenues earned less expenses incurred by a business. A net income, or profit, means that revenues exceeds expenses. Revenues are inflows of assets such as cash in exchange for products and services provided to customers. E. g. sales, interest earned, consulting revenue, and fees earned. Examples of expenses are: wages expense, insurance expense, rent expense, utilities expense. Done by adjusting beginning equity for owner investments less owner reports on changes in equity over the reporting period withdrawls and net loss plus net income. Owner investments occur when the owner transfers personal assets, such as cash and equipment, into the business. Owner withdrawls, or drawings, are a distribution of net income to the owner and occur when the owner takes cash or other assets from the business.

Related Questions

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

Problem 1-33Interrelationships among financial statements Crawford Enterprises started the 2014 accounting period with $75,000 of assets (all cash), $15,000 of liabilities, and $25,000 of common stock. During the year, Crawford earned cash revenues of $46,000, paid cash expenses of $26,000, and paid a cash dividend to stockholders of $5,000. Crawford also acquired $15,000 of additional cash from the sale of common stock and paid $10,000 cash to reduce the liability owed to a bank. Required a.Prepare an income statement, statement of changes in stockholdersâ equity, period-end balance sheet, and statement of cash flows for the 2014 accounting period. (Hint: Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements.) b.Determine the percentage of total assets that were provided by creditors, investors, and earnings. c.Determine the balance in the Revenue, Expense, and Dividends accounts as of January 1, 2015. LO 1-2, 1-3, 1-4, 1-5, 1-6, 1-7 CHECK FIGURES a. Net Income: $19,000 e. Net Cash Flow from Operating Activities: $19,000

lavenderwombat729

LuluCo reported the following on its 2014 income statement. Using the income statement and the balance sheet given below, prepare the statement of cash flows using the indirect method. Ignore required disclosures for cash flows associated with interest paid and received, dividends paid and received and income taxes as well as any non-cash disclosures that may have occurred in the current year.

Analysis of accounts:

1) Retired bonds, paid $11,500

2) Sold HTM investment in Lala Consulting common shares for $11,500

3) Purchased equipment $57,000 cash

4) Sold furniture, and settled in cash.

5) Purchased HFT investments $3,000 cash. This companyâs HFT investments are not readily convertible to a known amount of cash but will be traded within 12 months.

6) Paid cash dividends

7) Issued common shares, 2,300 shares at $5 per share.

8) Changes in other balance sheet accounts resulted from usual transactions and events

LuluCo
Income Statement
For the year ended December 31, 2014
Sales		$515,000
Operating expenses
Cost of goods sold	257,500
Depreciation expense	10,000
Interest expense	4,725
Amortization expense	19,000
Other operating expenses	97,600	388,825
Other revenues and expenses
Loss on sale of HTM investments		-1,000
Net income		$125,175


LuluCo
Balance Sheet
As of December 31, 2014	2014	2013
Cash	$16,000	$31,500
Investments (held for trading	61,000	58,000
Accounts receivable, net	72,500	89,000
Inventory	69,500	82,000
HTM investments	43,000	55,500
Property, plant, equipment, net	117,000	120,000
Patent, net	34,000	53,000
Total assets	$413,000	$489,000
Accounts payable	$68,500	$78,000
Salaries payable	53,500	43,000
Short-term notes payable	122,000	139,500
Bonds payable	83,000	94,500
Common shares	39,000	27,500
Retained earnings	47,000	106,500
Total liabilities and shareholders' equity	$413,000	$489,000

crimsonporpoise854

ACC 100 Lecture Notes - Financial Statement, Balance Sheet, Income Statement

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