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HW1 - Solution Gator Investments Income Statement Service...

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Solution Gator Investments Income Statement Service revenue $122,600 Expenses: Advertising $32,500 Salaries 64,100 Utilities 14,500 Interest 2,500 Total expenses 113,600 Net income $ 9,000 Gator Investments Statement of Stockholders’ Equity Common Stock Retained Earnings Total Stockholders’ Equity Beginning balance $100,000 $21,300 $121,300 Issuance of common stock 10,000 10,000 Add: Net income 9,000 9,000 Less: Dividends (4,200) (4,200) Ending balance $110,000 $26,100 $136,100
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Gator Investments Balance Sheet Assets Liabilities Cash $ 4,500 Accounts payable $ 5,400 Equipment 22,000 Notes payable 25,000 Buildings 140,000 Total liabilities 30,400 Stockholders’ Equity Common stock 110,000 Retained earnings 26,100 Total stockholders’ equity 136,100 Total liabilities and stockholders’ equity $166,500 Total assets $166,500
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Solution Tar Heel Corporation Income Statement For the year ended December 31, 2012 Service revenues $64,400 Expenses: Advertising $ 9,400 Utilities 5,000 Salaries 25,700 Interest 1,600 Total expenses 41,700 Net income $22,700 Tar Heel Corporation Statement of Stockholders’ Equity For the year ended December 31, 2012 Common Stock Retained Earnings Total Stockholders’ Equity
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