Learning objective 02 p3 prepare financial statements

Learning Objective: 02-P3 Prepare financial statements from business transactions.
Topic: Analyzing Transactions
Topic: Using a Trial Balance to Prepare Financial Statements

202. Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the
current year:
Assets Liabilities
Beginning of the
year
$114,000 $68,000
End of the year 135,000 73,000
If Jerry invested an additional $12,000 in the business during the year, but withdrew no assets
during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?
Beginning stockholders' equity = $114,000 - $68,000 = $46,000
Ending stockholders' equity = $135,000 - $73,000 = $62,000
Increase in stockholders' equity = $62,000 - $46,000 = $16,000
Net income = $16,000 - $12,000 = $4,000
AACSB: Analytical Thinking
AICPA: BB Industry
AICPA: FN Measurement
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.
Learning Objective: 02-P3 Prepare financial statements from business transactions.
Topic: Analyzing Transactions
Topic: Using a Trial Balance to Prepare Financial Statements

203. Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the
current year:
Assets Liabilities
Beginning of the
year
$114,000 $68,000
End of the year 135,000 73,000
If Jerry made no investments in the business but withdrew $5,000 during the year, what was the
amount of net income earned by Jerry's Butcher Shop, Inc.?
Beginning stockholders' equity = $114,000 - $68,000 = $46,000
Ending stockholders' equity = $135,000 - $73,000 = $62,000
Increase in stockholders' equity = $62,000 - $46,000 = $16,000
Net income = $16,000 + $5,000 = $21,000
AACSB: Analytical Thinking
AICPA: BB Industry
AICPA: FN Measurement
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.
Learning Objective: 02-P3 Prepare financial statements from business transactions.
Topic: Analyzing Transactions
Topic: Using a Trial Balance to Prepare Financial Statements

204. Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the
current year:
Assets Liabilities
Beginning of the
year
$114,000 $68,000
End of the year 135,000 73,000
If Jerry invested an additional $12,000 in the business and withdrew $5,000 during the year, what
was the amount of net income earned by Jerry's Butcher Shop, Inc.?
Beginning stockholders' equity = $114,000 - $68,000 = $46,000
Ending stockholders' equity = $135,000 - $73,000 = $62,000
Increase in stockholders' equity = $62,000 - $46,000 = $16,000
Net income = $16,000 - $12,000 + $5,000 = $9,000
AACSB: Analytical Thinking
AICPA: BB Industry
AICPA: FN Measurement
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.
Learning Objective: 02-P3 Prepare financial statements from business transactions.
Topic: Analyzing Transactions
Topic: Using a Trial Balance to Prepare Financial Statements
205. A company had total assets of $350,000, total liabilities of $101,500 and total equity of $248,500.