14)a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the...14)a....

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Accounting

14)
a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the beginning of the year. During the year, thecompany earned revenues of $10,000 on account; incurred operatingexpenses of $6,500; collected $8,000 of accounts receivable;borrowed $20,000 from a bank; obtained $8,000 of cash from ownersfor stock and paid $4,500 of cash to the owners as dividends. Howmuch is the ending balances of common stock and retained earnings_ and _____ .
b. Henderson Co. purchased $800 of office supplies but only has$200 left over on 1/31/xx. What is the correct end of periodadjustment journal entry?
c. LNJ Co. owns equipment costing $120,000. If the salvage valueis estimated to be $4,000, the estimated useful life is estimatedto be 5 years and the straight-line method is used to depreciateassets make the journal entry for the first full year ofdepreciation and determine the asset’s book value at the end ofyear two.

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Part a AnswersCommon stock Balance 10000 Retained earnings Balance 4000 Calculations Common stock Beginning Balance 200000 Additions 800000 Ending balance 1000000 Retained earnings Beginning Balance 500000 Add Net Income 350000 Less Dividends paid 450000 Ending balance 400000 See Answer

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In: Accounting14)a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the...14)a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the beginning of the year. During the year, thecompany earned revenues of $10,000 on account; incurred operatingexpenses of $6,500; collected $8,000 of accounts receivable;borrowed $20,000 from a bank; obtained $8,000 of cash from ownersfor stock and paid $4,500 of cash to the owners as dividends. Howmuch is the ending balances of common stock and retained earnings___________ and _______________ .b. Henderson Co. purchased $800 of office supplies but only has$200 left over on 1/31/xx. What is the correct end of periodadjustment journal entry?c. LNJ Co. owns equipment costing $120,000. If the salvage valueis estimated to be $4,000, the estimated useful life is estimatedto be 5 years and the straight-line method is used to depreciateassets make the journal entry for the first full year ofdepreciation and determine the asset’s book value at the end ofyear two.