MGAB01H3 Chapter 3: Chapter 3
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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 | $ |
- Consider the following financial information for the year ended December 31, 2015 for Henry’s Lobster Shack, a thriving restaurant in Jaco, Costa Rica.
Accounts Payable |
$ 166,000 |
Dividends paid during 2015 |
$ 39,000 |
Wages and Taxes payable |
120,000 |
Other Liabilities |
517,000 |
Cash balance, Jan. 1/15 |
84,000 |
Other Revenues |
21,000 |
Cash balance, Dec. 31/15 |
94,000 |
Property and Equipment |
1,549,000 |
Food and Supplies Expense |
1,415,000 |
Restaurant Sales Revenue |
3,920,000 |
Selling and Admin Expenses |
235,000 |
Utilities and Other Expenses |
1,104,000 |
Food and Supply Inventory |
87,000 |
Wages Expense |
1,087,000 |
Notes Payable |
235,000 |
Retained Earnings, Jan 1/15 |
1,074,000 |
Other Assets |
529,000 |
Henry’s Contributed Capital |
86,000 |
Prepare a set of financial statements for Henry’s Lobster Shack excluding a Statement of Cash Flow. (13 marks)
The balance sheet and the income statement for the year endedDecember 31, 2016 for Johnson Inc. follows. During 2016, cash of15,000 was paid for building and equipment, 10,000 was paid forretirement of notes payable, and $68,000.was paid for cashdividends. . During 2016, cash was received from issuance ofstock.
Balance Sheet As of December, 31. | ||
2016 | 2015 | |
Cash | $ 25,000 | $ 20,000 |
Accounts receivable, net | 60,000 | 70,000 |
Inventory | 80,000 | 100,000 |
Land | 50,000 | 50,000 |
Building and equipment | 130,000* | 115,000 |
Accumulated depreciation | (85,000) | (70,000) |
Total assets | $260,000 | $285,000 |
Accounts payable | $ 30,000 | $ 35,000 |
Income taxes payable | 4,000 | 3,000 |
Wages payable | 5,000 | 3,000 |
Current notes payable | 50,000** | 60,000 |
Common stock | 110,000*** | 100,000 |
Retained earnings | 61,000 | 84,000 |
Total liabilities and stockholders's equity | $260,000 | $285,000 |
Income Statement For the Year Ended December 31, 2016 | ||
Sales | $500,000 | |
Less expenses: | ||
Cost of goods sold | $330,000 | |
Selling and administrative expenses | 90,000 | |
(includes depreciation of $15,000) | ||
Interest expense | 5,000 | |
Total expenses | 425,000 | |
Income before taxes | $ 75,000 | |
Income tax expense | 30,000 | |
Net income | $ 45,000 |
(Required) Prepare the statement of cash flows for 2016. Presentcash flows from operations using the indirect approach..