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Chapter 4 B Problem Solutions

Chapter 4 B Problem Solutions - Prob 4–1B 1 LIGHTWORKS...

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Unformatted text preview: Prob. 4–1B 1. LIGHTWORKS COMPANY Income Statement For the Year Ended July 31, 2010 Revenues: Fees revenue................................................................. $307,000 Rent revenue................................................................. 1,000 Total revenues.......................................................... $308,000 Expenses: Salaries and wages expense....................................... $114,900 Advertising expense.................................................... 21,700 Utilities expense........................................................... 11,400 Repairs expense........................................................... 8,850 Depreciation expense—equipment............................ 3,200 Insurance expense....................................................... 3,000 Supplies expense......................................................... 1,900 Depreciation expense—building................................ 1,400 Miscellaneous expense............................................... 4,320 Total expenses.......................................................... 170,670 Net income........................................................................... $ 137,330 2. LIGHTWORKS COMPANY Statement of Owner’s Equity For the Year Ended July 31, 2010 Marisa Crider, capital, August 1, 2009.............................. $103,100 Net income for the year....................................................... $137,330 Less withdrawals................................................................. 10,000 Increase in owner’s capital................................................. 127,330 Marisa Crider, capital, July 31, 2010.................................. $230,430 Prob. 4–1B Continued 3. LIGHTWORKS COMPANY Balance Sheet July 31, 2010 Assets Liabilities Current assets: Current liabilities: Cash............................................... $ 5,800 Accounts payable................. $5,700 Accounts receivable.................... 22,200 Salaries and wages Prepaid insurance........................ 1,200 payable................................ 1,800 Supplies........................................ 830 Unearned rent........................ 1,100 Total current assets.................. $ 30,030 Total liabilities.......................... $ 8,600 Property, plant, and equipment: Land............................................... $98,000 Building......................................... $200,000 Owner’s Equity Less accum. depreciation........... 101,700 98,300 Marisa Crider, capital............... 230,430 Equipment..................................... $101,000 Less accum. depreciation........... 88,300 12,700 Total property, plant, and equipment................................ 209,000 Total liabilities and Total assets...................................... $239,030 owner’s equity....................... $239,030 Prob. 4–1B Continued 4....
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Chapter 4 B Problem Solutions - Prob 4–1B 1 LIGHTWORKS...

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