Ex pens es inc urredandpaidwere4100 prepare an inc ome

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Unformatted text preview: h rec eiv ed from bank loans was $10,000. Rev enues earned and rec eiv ed in c as h were $12,000. Div idends of $4,000 were paid to s toc k holders . Ex pens es inc urred and paid were $4,100. Prepare an inc ome s tatement bas ed on this information, being c areful to inc lude only thos e items that s hould appear in that financ ial s tatement. (Input all am ounts as positive values. Om it the "$" sign in your response.) HERNANDEZ, INC. Inc ome Statement For the Month Ended Marc h 31, 2011 Rev enues $ 12,000 Ex pens es 4,100 Net inc ome $ 7,900 Explanation: The c as h rec eiv ed from bank loans is a pos itiv e c as h flow—financ ing ac tiv ity —in the s tatement of c as h flows , but is not inc luded in the inc ome s tatement. Div idends paid to s toc k holders are a negativ e c as h flow —financ ing ac tiv ity —in the s tatement of c as h flows , but are not inc luded in the inc ome s tatement. 3. awar d: 15 out of 15.00 points The balanc e s heet items of the Merc er Company as of Dec ember 31, 2011, follow in random order. Land $ 90,000 Offic e Equipment e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w $ 12,400 3/14 11/18/13 Assignme nt Pr int Vie w Ac c ounts Pay able Ac c ounts Rec eiv able Cas h 43,800 Building 56,700 Capital Stoc k 36,300 Notes Pay able Retained Earnings 210,000 75,000 207,000 ? Compute the amount for Retained earnings . (Om it the "$" sign in your response.) Retained earnings $ 79,600 Prepare a balanc e s heet for the c ompany . (Om it the "$" sign in your response.) MERCER COMPANY Balanc e Sheet Dec ember 31, 2011 Assets Cash Accounts receivable Office equipm ent Building Land Total Liabilities & Owners' Equity Liabilities : Accounts payable Notes payable Total Liabilities Owners ' equity : Capital stock Retained earnings Total $ 36,300 56,700 12,400 210,000 90,000 $ 405,400 $ 43,800 207,000 $ 250,800 75,000 79,600 $ 405,400 rev: 09_17_2012, 01_31_2013_QC_25688 Learning Objective: 02­04 Explain how the stat...
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This document was uploaded on 03/03/2014 for the course MGMT ACCOU 2300 at Rensselaer Polytechnic Institute.

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