Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. financial statement creation – use the informati

Financial Statement Creation – Use the information below to create B/S, I/S and Statement of Retained...

70.2K

Verified Solution

Question

Accounting

Financial Statement Creation – Use the information below tocreate B/S, I/S and Statement of Retained Earnings after adjustingfor the four additional activities below

  1. Consider the following information from a company's unadjustedtrial balance at December 31, 2018. All accounts have normalbalances.

Accounts Receivable

$

7,500

Accounts Payable

650

Cash

2,700

Service Revenue

16,500

Common Stock, $2 par, 10,000 authorized

2,000

Common Stock, add’l pd in capital

7,000

Equipment, at cost

12,900

Accumulated depreciation

2,300

Depreciation Expense

700

Land

5,800

Notes Payable, Due 2021

8,000

Investment Securities

1,200

Prepaid Rent

1,400

Rent Expense

2,400

Retained Earnings, January 1, 2018

5,850

Salaries and Wages Expense

8,000

Unearned revenue

300

At year-end, the company accountant realizes that the followingtransactions have to be recorded:

  • November 5, purchase 100 shares for the Treasury at a cost of$8 per share
  • Perform half of the work customers paid for in advance
  • Dec 1, Issue 1,200 shares of common stock at issue price of $9per share
  • Dec 31, declare and pay a dividend to common stock outstandingof $.50 per share

Answer & Explanation Solved by verified expert
3.6 Ratings (332 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine...

Biology
1.2K views

Explain in your own words the difference between a scientific journal, a science magazine, and a...

Biology
1.2K views

A successful cloning project of Dimetrodon has just been completed that resulted in several live and...

General Management
1.2K views

Create a PivotTable to combile the following information: 1. The total revenue for each salesperson 2. For...

Biology
1.2K views

Many insects make larvae that are very different from the adults. What do you think...

Basic Math
1.2K views

8 Consider the following equation x 1 y 1 dt a Using the above equation...

Basic Math
1.2K views

Given a railroad curve with the following parameters Dc 2 00 00 C 1 18...

Basic Math
1.2K views

Sales at a local ice cream shop went up 20% in 5 years. If 18,000...

Accounting
1.2K views

A proposed project is expected to generate returns of $50,000 per year for each of...

Accounting
1.2K views

On December 1, 20X1, the Luan Wholesale Co. is attempting to project cash...

Accounting
1.2K views

The Marshall Company issued a $100,000,8%,5 year bond for $92,278. The bond that pays interest...

Accounting
1.2K views

Interpreting Footnotes on Security Investments Cisco Systems Inc. reports the following information derived from its...