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2113 Summer I Stetson Group Homework

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

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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
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CP1-2 Req. 1 Nuclear Company’s income statement reported net income of $21,950, suggesting that the company was profitable because revenues exceeded expenses. Req. 2 Nuclear Company’s 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 company’s 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 Company’s 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.
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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) ..................................................................... 16,000 c. No transaction has occurred because there has been no exchange of cash, goods, or services.
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CP2-2 Req. 1 Assets = Liabilities + Stockholders’ Equity a . Cash +200,000 Contributed capital +200,000 b . Cash +30,000 Notes payable +30,000 c. Factory building Cash +141,000 -41,000 Notes payable +100,000 d . Equipment Cash +100,000 -100,000 e . Supplies +10,000 Accounts payable +10,000
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CP2-2 (continued) Req. 2 a. dr Cash (+A) ......................................................................... 200,000 cr Contributed capital (+SE) ............................................ 200,000 b. dr Cash (+A) ......................................................................... 30,000 cr Notes payable (+L) ...................................................... 30,000 c. dr Factory building (+A) ........................................................ 141,000 cr Cash (-A) ..................................................................... 41,000 cr Notes payable (+L) ...................................................... 100,000 d. dr Equipment (+A) ................................................................ 100,000 cr Cash (-A) ..................................................................... 100,000 e. dr Supplies (+A) .................................................................... 10,000 cr Accounts Payable (+L) ................................................ 10,000 Req. 3 Cash Supplies Equipment Beg. 16,000 Beg. 5,000 Beg. 18,000 (a) 200,000 41,000 (c) (e) 10,000 (d) 100,000 (b) 30,000 100,000 (d) End. 105,000 End. 15,000 End. 118,000 Factory Building Land Beg. 200,000 Beg. 100,000 (c) 141,000 End. 341,000 End. 100,000 Accounts Payable Notes Payable 20,000 Beg. 1,000 Beg. 10,000 (e) 30,000 (b) 100,000 (c) 30,000 End. 131,000 End. Contributed Capital Retained Earnings 80,000 Beg. 238,000 Beg. 200,000 (a) 280,000 End. 238,000 End.
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CP2-2 (continued) Req. 4 Athletic Performance Company Balance Sheet At July 31, 2008 Assets Liabilities Current Assets Current Liabilities Cash $ 105,000 Accounts payable $ 30,000 Supplies 15,000 Total Current Liabilities 30,000 Total Current Assets 120,000 Notes payable 131,000 Total Liabilities 161,000 Equipment 118,000
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