Professional Documents
Culture Documents
Assignment 1
Assignment 1
Ex. 2.3.
Kiner Company
Balance Sheet
December 31, Current year
Assets Liabilities and Owner’s Equity
Cash.................................................. $36,300 Liabilities
Land ................................................ $90,000 Account Payable ........................$43,800
Account Receivable ........................ $56,700 Notes Payable ...........................$207,000
Office Equipment ............................ $12,400 Owner’s Equity
Building ......................................... $210,000 Capital Stocks ............................$88,000
Retained Earnings ......................$66,600
The amount of retained earnings is calculated as the difference between total assets and liabilities plus
capital stock: $405,400 – ($250,800 + $88,000) = $66,600
Ex. 2.6.
Ex. 2.13.
Prestwick Company
August 31, Current year
Revenues
Services provided to customers .............................................................................. $17,000
Expenses
Expenses required to provide services to customers................................................. $7,800
Ex. 2.14.
Prestwick Company
Statement of Cash Flows
August 31, Current year
Cash flows from operating activities
Cash received from revenues .......................................................... $17,000
Cash paid for expenses ................................................................... ($7,800)
Net cash provided by operating activities .................................................... $9,200
Cash flows from investing activities
Cash purchase of land .................................................................................. ($16,000)
Cash flows from financing activities
Cash received from a bank loan ...................................................... $15,000
Cash received from investment by stockholders .............................. $5,000
Cash paid for payment to long-term creditors ............................. ($11,700)
$8,300
Franklin Bakery
Balance Sheet
August 1, current year
Assets Liabilities and Owner’s Equity
Cash.................................................... $6,940 Liabilities
Land ................................................ $67,000 Account Payable ........................$16,200
Account Receivable ........................ $11,260 Notes Payable .............................$74,900
Supplies ............................................. $7,000 Salaries Payable ...........................$8,900
Building ........................................... $84,000
Equipment and fixtures ................... $44,500 Total liabilities .........................$100,000
Owner’s Equity
Capital Stocks ............................$80,000
Retained Earnings ......................$40,700
b.
Franklin Bakery
Balance Sheet
August 3, current year
Assets Liabilities and Owner’s Equity
Cash.................................................. $14,490 Liabilities
Land ................................................ $67,000 Account Payable ..........................$7,200
Account Receivable ........................ $11,260 Notes Payable .............................$74,900
Supplies ............................................. $8,250 Salaries Payable ...........................$8,900
Building ........................................... $84,000
Equipment and fixtures ................... $51,700 Total liabilities ...........................$91,000
Owner’s Equity
Capital Stocks ..........................$105,000
Retained Earnings ......................$40,700
Franklin Bakery
Statement of Cash Flows
August 1-3, Current year
Cash flows from operating activities
Cash paid for account payable ..................................................... ($16,200)
Cash paid for supplies .................................................................... ($1,250)
Cash used in operating activities ................................................................ ($17,450)
Cash flows from investing activities
No activities
Cash flows from financing activities
Cash received from capital stock ................................................................. $25,000