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WILEY plus Financial Accounting by Kimmel Homework E1-9 Sleep Cheap is a private camping ground near the Lathom Peak Recreation Area. It has compiled the following financial information as of December 31, 2007. Revenues during 2007: camping fees $137,000 Dividends $9,000 Revenues during 2007: general store 25,000 Notes payable 50,000 Accounts payable 11,000 Expenses during 2007 129,000 Cash on hand 8,500 Supplies on hand 2,500 Equipment 119,000 Common stock 40,000 Retained earnings (1/1/2007) 5,000 Determine net income from Sleep Cheap for 2007 and complete the financial statements below based on the information provided. (List assets in order of liquidity and liabilities in order of magnitude with notes payable first.) SLEEP CHEAP Retained Earnings Statement For the Year Ended December 31, 2007 Retained earnings January 1 $ 5,000 Net income 33,000 38,000 Dividends 9,000 Retained earnings December 31 $ 29,000 SLEEP CHEAP Balance Sheet December 31, 2007 Assets Cash $ 8,500 Supplies 2,500 Equipment 119,000 Total assets $ 130,000 Liabilities and Stockholders' Equity Liabilities Notes payable $ 50,000 Accounts payable 11,000 Total liabilities $ 61,000 Stockholders' equity Common stock 40,000 Retained earnings 29,000 69,000 Total liabilities and stockholders' equity $ 130,000 On June 1 Fix-it-Up Service Company was started with an investment of $26,200 cash. Here are the assets and liabilities of the company on June 30, and the revenues and expenses for the month of June, its first month of operations. Cash $4,600 Notes payable $14,000 Accounts receivable 4,000 Accounts payable 500 Revenue 8,000 Supplies expense 1,000 Supplies 2,400 Gas & oil expense 600 Advertising expense 400 Utilities expense 300 Equipment 32,000 Wage expense 1,400 P1-3A In June, the company issued no additional common stock, but paid dividends of $2,000. Complete an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2007. (List expenses in order of magnitude. Assets in order of liquidity and liabilities in order of magnitude with notes payable first.) FIX-IT-UP SERVICE CO. Income Statement For the Month Ended June,30 2007 Revenues Revenue $ 8,000 Expenses Wage expense $ 1,400 Supplies expense 1,000 Gas & oil expense 600 Advertising expense 400 Utilities expense 300 Total expenses 3,700 Net income $ 4,300 FIX-IT-UP SERVICE CO.... View Full Document

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