Week One Assignment

Week One Assignment - LIABILITIES 36 Cash $10,000 Accounts...

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HARRISON/HORNGREN, FINANCIAL ACCOUNTING 5E Problem 1-6A Name Anthony Arostegui Section ACCT212 A s C D E F G H 5 Hercules, Inc. 6 Income Statement 7 For the Year Ended December 31, 20X8 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, 20X8 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 Anthony Arostegui Section ACCT212 A s C D E F G H 30 Part 3. 31 Hercules, Inc. 32 Balance Sheet 33 December 31, 20X8 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. Hercules was profitable by $108,000 in 20X8. 49 50 b. Retained earnings increase from $10,000 in the beginning of the year to $48,000 at the 51 end of the year. Thats a $38,000 increase. 52 53 c. Hercules' totlal liabilities was $205,000 greater than $88,000 which was the total 54 stockholders' equity. Creditors own more of Herules' assets. 55 56 End of Problem...
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Week One Assignment - LIABILITIES 36 Cash $10,000 Accounts...

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