2 48 Test Bank for Survey of Accounting First Edition Beg ret earn Net loss Div

2 48 test bank for survey of accounting first edition

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2-48 Test Bank for Survey of Accounting , First Edition (Beg. ret. earn. Net loss Div.) Solution 124 (25 min.) (b) SNYDER CORPORATION Balance Sheet July 31, 2017 Assets Current assets Cash $20,200 Accounts receivable 12,780 Total current assets $32,980 Property, plant, and equipment Equipment 21,000 Less: Accumulated depreciation—equipment 6,000 15,000 Total assets $47,980 (Cash + Acc. rec. + Equip. Acc. depr.) Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 4,100 Salaries and wages payable 2,580 Total current liabilities $6,680 Notes payable (due 2019) 1,800 Total liabilities 8,480 Stockholders' equity Common stock 16,000 Retained earnings 23,500 Total stockholders' equity 39,500 Total liabilities and stockholders' equity $47,980 (Acc. pay. + Sal./wag. pay. + Not. pay. + Com. stock + End. ret. earn.) FOR INSTRUCTOR USE ONLY
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2-49 A Further Look at Financial Statements Ex. 125 These items are taken from the financial statements of Drew Corporation for 2017. Retained earnings (beginning of year) $33,000 Utilities expense 2,000 Equipment 56,000 Accounts payable 15,300 Cash 15,900 Salaries and wages payable 3,000 Common stock 13,000 Dividends 14,000 Service revenue 78,000 Prepaid insurance 3,500 Maintenance and repairs expense 1,800 Depreciation expense 3,300 Accounts receivable 14,200 Insurance expense 2,200 Salaries and wages expense 47,000 Accumulated depreciation—equipment 17,600 Instructions Prepare an income statement and a retained earnings statement for the year ended December 31, 2017 and a classified balance sheet as of December 31, 2017. Ans: N/A, LO: 1, Bloom: AP, Difficulty: Medium, Min: 25, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution 125 (25 min.) DREW CORPORATION Income Statement For the Year Ended December 31, 2017 Revenues Service revenue $78,000 Expense Salaries and wages expense $47,000 Depreciation expense 3,300 Insurance expense 2,200 Utilities expense 2,000 Maintenance and repairs expense 1,800 Total expenses 56,300 Net income $21,700 (Ser. rev. Sal./wag. exp. Dep. exp. Ins. exp. Util. exp. Main./rep. exp.) DREW CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 Retained earnings, January 1, 2017 $33,000 Add: Net income 21,700 54,700 Less: Dividends 14,000 Retained earnings, December 31, 2017 $40,700 FOR INSTRUCTOR USE ONLY
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2-50 Test Bank for Survey of Accounting , First Edition (Beg. ret. earn. + Net inc. Div.) Solution 125 (Cont.) DREW CORPORATION Balance Sheet December 31, 2017 Assets Current assets Cash $15,900 Accounts receivable 14,200 Prepaid insurance 3,500 Total current assets $33,600 (Cash + Acc. rec. + Prep. ins.) Property, plant, and equipment Equipment $56,000 Less: Accumulated depreciation—equipment 17,600 38,400 Total assets $72,000 (Tot. cur. assets + Equip. Acc. dep.) Liabilities and Stockholders' Equity Current liabilities Accounts payable $15,300 Salaries and wages payable 3,000 Total current liabilities $18,300 Stockholders' equity Common stock 13,000 Retained earnings 40,700 Total stockholders' equity 53,700 Total liabilities and stockholders' equity $72,000 (Acc. pay. + Sal./wag. pay. + Com. stock + End. ret. earn.) Ex. 126 The Dobson Company gathered the following condensed data for the year ended December 31, 2017: Cost of goods sold $ 720,000 Net sales 1,249,000 Administrative expenses 289,000 Interest expense 68,000 Dividends paid 38,000 Selling expenses 45,000 Instructions Prepare an income statement for the year ended December 31, 2017.
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  • Fall '20
  • Erin egeland
  • Balance Sheet, Generally Accepted Accounting Principles

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