8 Homework Corporations Proprietorships and Corporations

Davis Company has the following accounts and balances at the end of the year:Cash, $1,200Accounts Receivable, $280Office Equipment, $3,000Accounts Payable, $1,400Income from Services, $3,500Rent Expense, $670Salaries Expense, $1,000R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?

R. Davis Company has the following accounts and balances at the end of the year:Cash, $1,200Accounts Receivable, $280Office Equipment, $3,000Accounts Payable, $1,400Income from Services, $3,500Rent Expense, $670Salaries Expense, $1,000R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is the amount of total assets reported on the balance sheet? a.$4,480 b.$1,480 c.$9,800 d.$3,080

A sole proprietorship was started on January 1, Year 1, when it received $78,000 cash from Marlin Jones, the owner. During Year 1, the company earned $45,700 in cash revenues and paid $18,980 in cash expenses. Jones withdrew $6,500 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Stmt of Cash Flows Balance Sheet Prepare the income statement. MARLIN JONES SOLE PROPRIETORSHIP Income Statement For the Year Ended December 31, Year 1 $

A sole proprietorship was started on January 1, Year 1, when it received $78,000 cash from Marlin Jones, the owner. During Year 1, the company earned $45,700 in cash revenues and paid $18,980 in cash expenses. Jones withdrew $6,500 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year.

Steel Corporation uses the cash basis of accounting to record transactions. Steel collected $950,000 from its customers during the current year. Customers owed Steel $60,000 of accounts receivable at the beginning of the year and $80,000 of accounts receivable at the end of the year. What is Steel's sales revenue for the year converted to the accrual basis of accounting?

A sole proprietorship was started on January 1, Year 1, when it received $64,500 cash from Marlin Jones, the owner. During Year 1, the company earned $35,400 in cash revenues and paid $22.580 in cash expenses. Jones withdrew $4,300 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balance Sheet Prepare the income statement. MARLIN JONES SOLE PROPRIETORSHIP Income Statement For the Year Ended December 31, Year 1 Stmt of Cash Flows Capital Statement >

A sole proprietorship was started on January 1, Year 1, when it received $60,000 cash from Marlin Jones, the owner. During Year 1, the company earned $35,300 in cash revenues and paid $16,200 in cash expenses. Jones withdrew $1,000 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Capital Statement Statement Statement of Balance Sheet Cash Flows Prepare a statement of cash flows. Note: Cash outflows should be indicated with a minus sign. MARLIN JONES SOLE PROPRIETORSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: $ 0

A sole proprietorship was started on January 1, Year 1, when it received $72,500 cash from Marlin Jones, the owner. During Year 1, the company earned $36,800 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $4,200 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Capital Statement Statement Prepare the income statement. MARLIN JONES SOLE PROPRIETORSHIP Income Statement For the Year Ended December 31, Year 1 Balance Stmt of Cash Sheet Flows

A sole proprietorship was started on January 1, Year 1, when it received $40,500 cash from Marlin Jones, the owner. During Year 1, the company earned $39,000 in cash revenues and paid $18,790 in cash expenses. Jones withdrew $6,400 cash from the business during Year 1. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones' Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Capital Statement Statement Statement of Cash Flows pare an income statement for Jones Year 1 fiscal year. Balance Sheet MARLIN JONES SOLE PROPRIETORSHIP Income Statement For the Year Ended December 31, Year 1

During year 6, Kincaid, Inc. earned $85,000 of cash revenue. The company incurs all operating expenses on account. The year 6 begginning balance in Kincaid's account payable was $2,000, while the ending balance was $25,000. The company made cash payments of $40,000 to reduce accounts payable during year 6.  Based on the information provided, determine the amount of operating expense recognized, the amount of net income earned, and the amount of cash flow from operating activities.

The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 35% of the $18,100 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,300 cash in full payment of Clark's account. Aug. 9 Wrote off the $6,350 balance owed by Iron Horse Co., which has no assets. Nov. 7 Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,865 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,105; DeVine Co., $5,435; Moser Distributors, $9390; Oceanic Optics, $1,075. Dec. 31 Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be uncollectible. Journalized…

The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 40% of the $18,200 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,400 cash in full payment of Clark’s account. Aug. 9 Wrote off the $6,465 balance owed by Iron Horse Co., which has no assets. Nov. 7 Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,830 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,190; DeVine Co., $5,510; Moser Distributors, $9,410; Oceanic Optics, $1,205. Dec. 31 Based on an analysis of the $1,820,500 of accounts receivable, it was estimated that $36,410 will be…

Compute Roma’s first-year net income under the cash basis and the accrual basis of accounting.

Limerick Company maintained the accounting records using the cash basis of accounting. During the current year, the entity collected P5,000,000 in fees from clients. On January 1, accounts receivable of P800,000 and unearned fees of P500,000 had been recorded. On December 31, accounts receivable increased to P1,500,000 while unearned fees increased to P900,000. Under accrual basis, what is the service revenue for the current year?

The following transactions were completed by Daws Company during the current fiscal year ended December 31:Jan. 29. Received 35% of the $9,000 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible.Apr. 18. Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,000 cash in full payment of Clark’s account.Aug. 9. Wrote off the $11,850 balance owed by Iron Horse Co., which has no assets.Nov. 7. Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,000 cash in full payment of the account.Dec. 31. Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $12,100; DeVine Co., $8,110; Moser Distributors, $21,950; Oceanic Optics, $10,000.31. Based on an analysis of the $1,450,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the…

In its first year of operations, Roma Company reports the following. ∙ Earned revenues of $45,000 ($37,000 cash received from customers). ∙ Incurred expenses of $25,500 ($20,250 cash paid toward them). ∙ Prepaid $6,750 cash for costs that will not be expensed until next year. Compute Roma’s first-year net income under the cash basis and the accrual basis of accounting.

During its first year of operations, Cooper Company bills credit customers $19,800 for services rendered. During the year, Cooper receives $16,500 from all customers, $3,700 of which is received from cash customers. Required: What amount of revenue should be shown on the income statement for the year?

The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan. 29 Received 40% of the $17,000 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,560 cash in full payment of Karm’s account. Aug. 9 Wrote off the $22,380 balance owed by Golden Stallion Co., which has no assets. Nov. 7 Reinstated the account of Wiley Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $13,220 cash in full payment of the account. Dec.  31 Wrote off the following accounts as uncollectible (one entry): Claire Moon Inc., $22,860; Jet Set Co., $15,320; Randall Distributors, $41,460; Harmonic Audio, $18,890.   31 Based on an analysis of the $2,740,000 of accounts receivable, it was estimated that $113,330 will…

The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8. Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27. Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13. Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31. Reinstated the account of Crawford Co., which had been written off in the pre- ceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110. Dec. 31. Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible.…

The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8. Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27. Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13. Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31. Reinstated the account of Crawford Co., which had been written off in the pre- ceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110. Dec. 31. Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be uncollectible.…

The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110. Dec. 31 Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be…

The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110. Dec. 31 Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be…

The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,880 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,190; Bonneville Co., $5,500; Crow Distributors, $9,400; Fiber Optics, $1,110. Dec. 31 Based on an analysis of the $1,785,000 of accounts receivable, it was estimated that $35,700 will be…

Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $13,100 of common stock for cash. 2) The company paid cash to purchase $7,900 of inventory. 3) The company sold inventory that cost $5,300 for $10,900 cash. 4) Operating expenses incurred and paid during the year, $4,800. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $11,400 of inventory. 2) The company sold inventory that cost $9,500 for $17,500 cash. 3) Operating expenses incurred and paid during the year, $5,800. Note: Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for Year 2? Multiple Choice $9,500 $2,200 $6,100 $8,000

The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 35% of the $18,100 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,300 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,350 balance owed by Kat Tracks Co., which has no assets. Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,865 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,105; Bonneville Co., $5,435; Crow Distributors, $9,390; Fiber Optics, $1,075. Dec. 31 Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be…

The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan. 29 Received 40% of the $17,000 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,405 cash in full payment of Karm’s account. Aug. 9 Wrote off the $6,460 balance owed by Golden Stallion Co., which has no assets. Nov. 7 Reinstated the account of Wiley Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,940 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Claire Moon Inc., $7,095; Jet Set Co., $5,540; Randall Distributors, $9,495; Harmonic Audio, $1,035.   31 Based on an analysis of the $1,782,000 of accounts receivable, it was estimated that $35,640 will be…

Dristell Inc. had the following activities during the year (all transactions are for cash unless stated otherwise):   A building with a book value of $400,000 was sold for $500,000. Additional common stock was issued for $160,000. Dristell purchased its own common stock as treasury stock at a cost of $75,000. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller. A dividend of $40,000 was paid to shareholders. An investment in Fleet Corp.’s common stock was made for $120,000. New equipment was purchased for $65,000. A $90,000 note payable issued three years ago was paid in full. A loan for $100,000 was made to one of Dristell’s suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months.   Required:Calculate net cash flows from investing activities. (List cash outflows and any decrease in cash as negative amounts.)

Leach Incorporated experienced the following events for the first two years of its operations. Year 1: Issued $24,000 of common stock for cash. Provided $93,400 of services on account. Provided $50,000 of services and received cash. Collected $83,000 cash from accounts receivable. Paid $52,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Closed the revenue account. Closed the expense accounts. Year 2: Wrote off an uncollectible account for $1,350. Provided $102,000 of services on account. Provided $46,000 of services and collected cash. Collected $95,000 cash from accounts receivable. Paid $79,000 of salaries expense for the year. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Closed the…

Saved In Year 1, Lee Incorporated billed its customers $57,700 for services performed. The company collected $41,900 of the amount billed. Lee ingurred $38,000 of other operating expenses from the issue of common stock. The company invested $15,000 cash in the purchase of land. account. Lee paid $23,100 of the accounts payable. Lee acquired $33,000 cash Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions. a. What amount of revenue will Lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing…