22000 tonysbusiness statementofretainedearnings

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Unformatted text preview: inventory. E14–8 Continued 5. Cash (+A) Accounts Receivable (+A) 20,000 60,000 Sales (R, +SE) 80,000 Made sale. Cost of Goods Sold (E, –SE) 25,000 Inventory (–A) 25,000 Recognized cost of inventory sold. 6. Operating Expenses (E, –SE) Payable to Bank (–L) Dividend (–SE) 18,000 5,000 2,000 Cash (–A) 25,000 Made cash disbursements. 7. Operating Expenses (E, –SE) Payable (+L) 15,000 Operating Expenses 15,000 Incurred, but did not pay, expenses. b. Tony’s Business Income Statement For the Year Ended December 31, 2012 Sales Cost of goods sold Operating expenses Net income $ 80,000 (25,000) (33,000) $ 22,000 Tony's Business Statement of Retained Earnings For the Year Ended December 31, 2012 Beginning retained earnings balance: January 1, 2012 Plus: Net income 22,000 Less: Dividends (2,000) Ending retained earnings, December 31, 2012 20,000 $ $ 0 E14–8 Continued Tony's Business Balance Sheet December 31, 2012 Assets Cash $ 25,000 Liabilities & Stockholders' Equity Accounts payable $ 15,000 Accounts receivable 60,000Operating expenses payable 15,000 Inventory 15,000 Payable to bank 25,000 Contributed capital 55,000 Property, plant & equipment 20,000 Retained 20,000 Total e a rn i n g s liabilities and Total assets equity c. $ $ 125,000 125,000 stockholders' Cash Beginning balance Owner's contribution assets Proceeds from bank loan 0 20,000 25,000 60,000 Purchase of fixed Purchase of inventory 25,000 Proceeds from sale 20,000 Operating expenses 18,000 Principal payment 5,000 Dividend payment 2,000 Ending balance 25,000 Tony's Business Statement of Cash Flows For the Year Ended December 31, 2012 Cash from operating activities: Cash collections from sales Cash paid for inventory Cash paid for expenses $ 20,000 (25,000) (18,000) Net cash increase (decrease) due to operating activities $ (23,000) Cash from investing activities: Purchase of fixed assets (25,000) Cash from financing activities: Proceeds from owner's contribution Proceeds from bank loan Principal repayment on debt Payment of dividend $ 20,000 60,000 (5,000) (2,000) Net cash increase (decrease) due to financing activities 73,000 Net increase (decrease) in cash 25,000 $ Beginning cash balance, January 1, 2012 Ending cash balance, December 31, 2012 25,000 E14–8 0 $ Concluded d. Tony's Business Statement of Cash Flows For the Year Ended December 31,...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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