2113 Summer I Stetson Group Homework

2113 Summer I Stetson Group Homework - ACCT 2113-01,...

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Unformatted text preview: ACCT 2113-01, Financial Accounting, Summer I 2010, Stetson, Group Homework Chapter One: CP1-1 Req. 1 NUCLEAR COMPANY Income Statement For the Year Ended December 31, 2009 Sales revenue $88,000 Expenses Operating expenses 57,200 Other expenses 8,850 Total expenses 66,050 Net income $ 21,950 Req.2 NUCLEAR COMPANY Statement of Retained Earnings For the Year Ended December 31, 2009 Retained Earnings, January 1, 2009 $0 Add: Net Income 21,950 Subtract: Dividends 200 Retained Earnings, December 31, 2009 $ 21,750 Req. 3 NUCLEAR COMPANY Balance Sheet At December 31, 2009 Assets: Cash $ 12,000 Accounts receivable 59,500 Supplies 8,000 Equipment 36,000 Total assets $115,500 Liabilities: Accounts payable $30,297 Notes payable 1,470 Total liabilities $ 31,767 Stockholders' equity: Contributed capital 61,983 Retained earnings 21,750 Total stockholders' equity 83,733 Total liabilities and stockholders' equity $115,500 CP1-2 Req. 1 Nuclear Companys income statement reported net income of $21,950, suggesting that the company was profitable because revenues exceeded expenses. Req. 2 Nuclear Companys statement of retained earnings reported a retained earnings balance of $21,750, after dividends of $200 had been subtracted. This suggests the company could have sustained additional dividends of $21,750, if sufficient cash were available to pay them. As it turns out, the companys balance sheet reports cash of $12,000, suggesting that only $12,000 in additional dividends could be paid (without borrowing additional cash). Req. 3 Nuclear Companys balance sheet reports total liabilities of $31,767 and stockholders equity of $83,733, indicating that the company is financed mainly by stockholders. Req. 4 Nuclear Company was founded at the beginning of the year, so it began with no cash. The balance sheet reports a cash balance of $12,000 at the end of the year. The reasons for this increase of $12,000 would be shown in the statement of cash flows. Chapter Two: E2-11 a. dr Cash (+A)......................................................................... 60,000 cr Contributed capital (+SE)............................................ 60,000 b. dr Cash (+A)......................................................................... 20,000 cr Notes payable (+L)...................................................... 20,000 d. dr Equipment (+A)................................................................ 10,000 cr Cash (- A)..................................................................... 1,000 cr Notes payable (+L)...................................................... 9,000 e. dr Equipment (+A)................................................................ 16,000 cr Cash (- A)........................................................................
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This note was uploaded on 10/21/2010 for the course ACCT 12345 taught by Professor Beth during the Spring '10 term at Oklahoma City Community College.

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2113 Summer I Stetson Group Homework - ACCT 2113-01,...

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