Solution to Handouts

Solution to Handouts - 1 1CHAPTER 11(a Income statement(d...

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Unformatted text preview: 1- 1CHAPTER 11.(a) Income statement. (d) Balance sheet. (b) Balance sheet. (e) Balance sheet. (c) Income statement. (f) Balance sheet. 2. The liabilities are (b) Accounts payable and (g) Salaries payable. 3. O (a) Cash received from customers. F (b) Cash paid to stockholders (dividends). F (c) Cash received from issuing new common stock. O (d) Cash paid to suppliers. I (e) Cash paid to purchase a new office building. 4. First note that the retained earnings statement shows that (b) equals $33,000. Accounts payable + Common stock + Retained earnings = Total liabilities and stockholders’ equity $5,000 + a + $33,000 = $65,000 a + $38,000 = $65,000 a = $27,000Beginning retained earnings + Net income – Dividends = Ending retained earnings $10,000 + e – $5,000 = $33,000 $5,000 + e = $33,000 e = $28,000From above, we know that net income (d) equals $28,000. Revenue – Cost of goods sold – Administrative expenses = Net income $80,000 – c – $10,000 = $28,000 $70,000 – c = $28,000 c = $42,0001- 2CHAPTER 21. (a) True. (b) False. 2. (a) CONNER CORPORATION Income Statement For the Year Ended July 31, 2004 Revenues Commission revenue ........................................................ $61,100)Rent revenue...................................................................... 8,500)Total revenues.......................................................... $ 69,600)Expenses Salaries expense................................................................ 54,700 Utilities expense ................................................................ 22,600 Depreciation expense........................................................ 4,000Total expenses......................................................... 81,300)Net loss......................................................................................... $(11,700) CONNER CORPORATION Retained Earnings Statement For the Year Ended July 31, 2004 Retained earnings, August 1, 2003 ............................................ Retained earnings, August 1, 2003 ....
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This note was uploaded on 04/15/2008 for the course ACCT 2010 taught by Professor Raman during the Spring '08 term at North Texas.

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Solution to Handouts - 1 1CHAPTER 11(a Income statement(d...

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