P01-6A - LIABILITIES 36 Cash $10,000 Accounts payable...

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HARRISON/HORNGREN, FINANCIAL ACCOUNTING 5E Problem 1-6A Name Mahanaim Peterson Section E A B C D E F G H 5 Hercules, Inc. 6 Income Statement 7 For the Year Ended December 31, 2008 8 Revenue: 9 Service revenue $220,000 10 Expenses: 11 Salary expense $63,000 12 Rent expense 23,000 13 Advertising expense 13,000 14 Interest expense 9,000 15 Property tax expense 4,000 16 Total expenses 112,000 17 Net income $108,000 18 19 Part 2. 20 Hercules, Inc. 21 Statement of Retained Earnings 22 For the Year Ended December 31, 2008 23 24 Retained earnings, beginning of year $10,000 25 Add: Net income for the year 108,000 26 118,000 27 Less: Dividends 70,000 28 Retained earnings, end of year $48,000 29
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HARRISON/HORNGREN, FINANCIAL ACCOUNTING 5E Problem 1-6A Name Mahanaim Peterson Section E A B C D E F G H 30 Part 3. 31 Hercules, Inc. 32 Balance Sheet 33 December 31, 2008 34 35 ASSETS
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Unformatted text preview: LIABILITIES 36 Cash $10,000 Accounts payable $19,000 37 Accounts receivable 12,000 Salary payable 1,000 38 Supplies 3,000 Note payable 185,000 39 Furniture 20,000 Total liabilities 205,000 40 Building 150,000 STOCKHOLDERS' 41 Land 98,000 EQUITY 42 Common stock 40,000 43 Retained earnings 48,000 44 Total stockholders' equity 88,000 45 Total liabilities and 46 Total assets $293,000 stockholders' equity $293,000 47 Part 4. 48 a. Yes the company was profitable. The net income was $108,000. 49 50 b. Retained Earnings increased by $38,000. 51 52 c. The total liabilities are greater than the total equity. Which means that creditors own more of Hercules' as 53 54 55 56 End of Problem HARRISON/HORNGREN, FINANCIAL ACCOUNTING 5E HARRISON/HORNGREN, FINANCIAL ACCOUNTING 5E ssets....
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This lab report was uploaded on 02/19/2008 for the course ACCT 212 taught by Professor Forgot during the Spring '07 term at DeVry Houston.

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P01-6A - LIABILITIES 36 Cash $10,000 Accounts payable...

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