Ch03 - Student Name: Rachel Riddle Class: Accounting 240...

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Student Name: Rachel Riddle Class: Accounting 240 T&TH Problem 03-04 Requirement 3: SYRENA'S SWEETS Income Statement for the Month Ended February 29, 2008 Revenues: Sales revenue $8,800 Costs and expenses: Cost of goods sold 4,700 Advertising expense 625 Wages expense 1,420 Repairs expense 315 Total costs and expenses 7,060 Net Income $1,740 SYRENA'S SWEETS Statement of Retained Earnings for the Month Ended February 29, 2008 Retained earnings, February 1, 2008 $0 Net income 1,740 Dividends 0 Retained earnings, February 28, 2008 $1,740 SYRENA'S SWEETS Balance Sheet At February 29, 2008 Assets Cash $15,015 Accounts receivable 625 Supplies 900 Merchandise inventory 300 Prepaid rent 5,400 Furniture and fixtures 16,500 Equipment 3,500 Total Assets $42,240 Liabilities Accounts payable $4,500 Note payable 20,000 Total Liabilities 24,500 Stockholders' Equity Contributed capital 16,000 Retained earnings 1,740 Total Stockholders' Equity 17,740 Total Liabilities and Stockholders' Equity $42,240 To Syrena
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SYRENA'S SWEETS Transactions during February, 2008: (a) Shareholder's contributions received; stock issued $16,000 (b) Monthly rent on store (paid 3 months) 600 (c) Purchased supplies for cash 900 (d) Purchased candy on account, due in 60 days 5,000 (e) Negotiated two-year bank loan 20,000 (f) Purchased computer using bank loan 3,500 Balance of bank loan used to purchase furniture and fixtures ? (g) Paid cash for advertisement 625 (h) Total sales on Valentine's Day 5,800 Sales in cash 4,925 Balance of total sales on credit ? Cost of candy sold 3,000 (i) Paid cash on accounts payable 500 (j) Incurred and paid employee wages 1,420 (k) Collected accounts receivable 250 (l) Paid for repair on display case 315 (m) Cash sales 3,000 Cost of goods sold 1,700 Data available after 3 years in business 2010 2009 2008 Total assets $80,000 $45,000 $35,000 Total liabilities 45,000 20,000 15,000 Total stockholders' equity
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This note was uploaded on 04/04/2008 for the course ACC 240 taught by Professor Lewis during the Fall '08 term at Eastern Michigan University.

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Ch03 - Student Name: Rachel Riddle Class: Accounting 240...

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