000 240000 total assets 300000 liabilities wages

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Unformatted text preview: ckholders’ equity Capital stock $ 100,000 Retained earnings 36,000 Total stockholders’ equity 136,000 Total liabilities and equity $ 320,000 Download free ebooks at bookboon.com 39 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #8) Revenues Services to customers $ 50,000 Expenses Wages $ 16,000 Utilities 4,000 Net income 20,000 $ 30,000 Wage Expense increases $ 6.000 RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #8) Beginning retained earnings $ Plus: Net income 30,000 $ 30,000 $ 30,000 Less: Dividends - Ending retained earnings Turning a challenge into a learning curve. Just another day at the office for a high performer. Please click the advert Accenture Boot Camp – your toughest test yet Choose Accenture for a career where the variety of opportunities and challenges allows you to make a difference every day. 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Visit accenture.com/bootcamp Download free ebooks at bookboon.com 40 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #8 Assets Cash $ Accounts receivable 60,000 20,000 Building 240,000 Total assets $ 320,000 Liabilities Wages payable $ Notes payable 6,000 184,000 Total liabilities $ 190,000 Wages Payable increases $ 6.000 Stockholders’ equity Capital stock $ 100,000 Retained earnings 30,000 Total stockholders’ equity 130,000 Total liabilities and equity $ 320,000 RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #9) Revenues Services to customers $ 50,000 Expenses Wages $ 16,000 Utilities 4,000 Net income 20,000 $ 30,000 $ - RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #9) Beginning retained earnings Plus: Net income 30,000 $ Less: Dividends 30,000 - Ending retained earnings $ 30,000 Download free ebooks at bookboon.com 41 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #9 Assets Cash $ Accounts receivable 68,000 12,000 Building 240,000 Total assets $ 320,000 Cash increases $ 8.000 Accounts Receivable decreases $ 8.000 Liabilities Wages payable $ Notes payable 6,000 184,000 Total liabilities $ 190,000 Stockholders’ equity Capital stock $ 100,000 Retained earnings 30,000 Total stockholders’ equity 130,000 Total liabilities and equity $ 320,000 The Wake Please click the advert the only emission we want to leave behind .QYURGGF 'PIKPGU /GFKWOURGGF 'PIKPGU 6WTDQEJCTIGTU 2TQRGNNGTU 2TQRWNUKQP 2CEMCIGU 2TKOG5GTX 6JG FGUKIP QH GEQHTKGPFN[ OCTKPG RQYGT CPF RTQRWNUKQP UQNWVKQPU KU ETWEKCN HQT /#0 &KGUGN 6WTDQ 2QYGT EQORGVGPEKGU CTG QHHGTGF YKVJ VJG YQTNFoU NCTIGUV GPIKPG RTQITCOOG s JCXKPI QWVRWVU URCPPKPI HTQO  VQ  M9 RGT GPIKPG )GV WR HTQPV (KPF QWV OQTG CV YYYOCPFKGUGNVWTDQEQO Download free ebooks at bookboon.com 42 Accounting Cycle Exercises I Problem 5: Solution RAJAGOPUL CORPORATION Income Statement For the Month (through transaction #10) Revenues Services to customers $ 50,000 Expenses Wages $ 16,000 Utilities 4,000 Net income 20,000 $ 30,000 RAJAGOPUL CORPORATION Statement of Retained Earnings For the Month (through transaction #10) Beginning retained earnings $ Plus: Net income 30,000 $ Less: Dividends 30,000 12,000 Ending retained earnings $ 18,000 $ 56,000 Dividends increases $ 12.000 RAJAGOPUL CORPORATION Balance Sheet As of Completion of Transaction #10 Assets Cash Accounts receivable 12,000 Building Cash decreases $ 12.000 240,000 Total assets $ 308,000 Liabilities Wages payable $ Notes payable 6,000 184,000 Total liabilities $ 190,000 Stockholders’ equity Capital stock $ 100,000 Retained earnings 18,000 Total stockholders’ equity 118,000 Total liabilities and equity $ 308,000 Download free ebooks at bookboon.com 43 Accounting Cycle Exercises I Problem 6: Worksheet Problem 6 Glasgow Corporation provided the following listing of financial statement elements and their respective balances. The periodic amounts relate to the year ending December 31, 20X9, and the point-in-time a...
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