ACCY 2001 Lecture Notes - Lecture 3: Retained Earnings, General Ledger, Financial Statement
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Missing Amounts from Financial Statements
The financial statements at the end of Atlas Realty's firstmonth of operations follow:
Required:
Analyze the interrelationships among the four financialstatements and enter the missing amounts. If an amount is zero,enter "0".
AtlasRealty | ||
IncomeStatement | ||
For the MonthEnded May 31, 2018 | ||
Fees earned | $400,000 | |
Expenses: | ||
Wages expense | $ | |
Rent expense | 48,000 | |
Supplies expense | 17,600 | |
Utilities expense | 14,400 | |
Miscellaneous expense | 4,800 | |
Total expenses | 288,000 | |
Net income | $ |
AtlasRealty | ||
RetainedEarnings Statement | ||
For the MonthEnded May 31, 2018 | ||
Retained earnings, May 1, 2018 | $ | |
Net income | $ | |
Dividends | ||
Change in retained earnings | ||
Retained earnings, May 31, 2018 | $ |
AtlasRealty | ||
BalanceSheet | ||
May 31,2018 | ||
Assets | ||
Cash | $123200 | |
Supplies | 12,800 | |
Land | ||
Total assets | $ | |
Liabilities | ||
Accounts payable | $48,000 | |
Stockholdersâ Equity | ||
Common stock | $ | |
Retained earnings | ||
Total stockholders' equity | ||
Total liabilities and stockholdersâequity | $ |
Use the minus sign to indicate cash outflows, decreases in cash,and cash payments.
AtlasRealty | ||
Statement ofCash Flows | ||
For the MonthEnded May 31, 2018 | ||
Cash flows from operating activities: | ||
Cash received from customers | $ | |
Cash payments for expenses and payments tocreditors | -252,800 | |
Net cash flows from operatingactivities | $ | |
Cash flows from investing activities: | ||
Cash payments for acquisition of land | -120,000 | |
Cash flows from financing activities: | ||
Cash received from issuing commonstock | $160,000 | |
Cash dividends | -64,000 | |
Net cash flows from financingactivities | ||
Net increase (decrease) in cash and May 31,2018, cash balance | $ |
4)
Financial statements of Rukavina Corporation follow: |
Rukavina Corporation Comparative Balance Sheet | ||
Ending Balance | Beginning Balance | |
Assets: | ||
Cash and cash equivalents | $34 | $31 |
Accounts receivable | 86 | 82 |
Inventory | 45 | 41 |
Property, plant and equipment | 678 | 580 |
Less: accumulated depreciation | 350 | 300 |
Total assets | $493 | $434 |
Liabilities and stockholders' equity: | ||
Accounts payable | $67 | $72 |
Bonds payable | 145 | 210 |
Common stock | 92 | 82 |
Retained earnings | 189 | 70 |
Total liabilities and stockholders' equity | $493 | $434 |
Income Statement | |
Sales | $755 |
Cost of goods sold | 383 |
Gross margin | 372 |
Selling and administrative expenses | 127 |
Net operating income | 245 |
Income taxes | 87 |
Net income | $158 |
Cash dividends were $39. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows. |
The net cash provided by (used in) investing activities for the year was: |
$(39)
$(65)
$(98)
$10
5) Alcoser Corporation's most recent balance sheet appears below:
Comparative Balance Sheet | ||
Ending Balance | Beginning Balance | |
Assets: | ||
Cash and cash equivalents | $34 | $29 |
Accounts receivable | 32 | 36 |
Inventory | 53 | 66 |
Property, plant and equipment | 554 | 480 |
Less accumulated depreciation | 208 | 206 |
Total assets | $465 | $405 |
Liabilities and stockholdersâ equity: | ||
Accounts payable | $41 | $50 |
Accrued liabilities | 17 | 16 |
Income taxes payable | 28 | 30 |
Bonds payable | 217 | 200 |
Common stock | 75 | 70 |
Retained earnings | 87 | 39 |
Total liabilities and equity | $465 | $405 |
Net income for the year was $60. Cash dividends were $12. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
The net cash provided by (used in) investing activities for the year was: