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.

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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1EA: Provide journal entries to record each of the following transactions. For each, identify whether the...

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Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Declared and paid to shareholders, a dividend of $24,000. B. Issued common stock at par value for $12,000 cash. C. Sold a tract of land that had cost $10,000, for $16,000. D. Purchased a company truck, with a note payable of $38,000. E. Collected $8,000 from customer accounts receivable.
Which of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity? A. Borrowed $40,000 from First National Bank B. Purchased land for $50,000 cash C. Received $3,800 for fees earned D. Paid $4,000 for Office salaries
Four different proprietorships, Jupiter, Mars, Saturn, and Venus, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owners equity, are summarized as follows: On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First, determine the amount of increase or decrease in owners equity during the year.) Jupiter:The owner had made no additional investments in the business and had made no withdrawals from the business. Mars:The owner had made no additional investments in the business but had withdrawn 36,000. Saturn:The owner had made an additional investment of 60,000 but had made no withdrawals. Venus:The owner had made an additional investment of 60,000 and had withdrawn 36,000.
The Accounting Equation Using the accounting equation, answer each of the following independent questions. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners equity at the end of the year? Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?
Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on January 1 with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in exchange for equipment and fixtures. The following trial balance was prepared at the end of the first month by the bookkeeper for Russell Company: Required Determine the balance in the Cash account. Identify all of the transactions that affected the Cash account during the month. Use a T account to prove what the balance in Cash will be after all transactions are recorded.
A sole proprietorship was started on January 1, 2018, when it received $64,500 cash from Marlin Jones, the owner. During 2018, the company earned $45,100 in cash revenues and paid $23,090 in cash expenses. Jones withdrew $4,500 cash from the business during 2018. Required: Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's 2018 fiscal year.
On December 1 of the current year, Rob Elliot invested $35,000 of his cash to form a proprietorship, GGE Enterprises. After all transactions have been entered into the accounting equation, the following are the ending balances for selected items on December 31. On that date, the financial statements were prepared. The statement of owner’s equity for GGE Enterprises reported Rob Elliot’s owner’s equity as of December 31 at $38,445. The balance sheet reported total liabilities and owner’s equity of $56,900. Accounts Accounts Rob Elliot, Rob Elliot, Fees Rent Supplies Utilities Wages Miscellaneous Cash Receivable Land Payable Capital Drawing Earned Expense Expense Expense Expense Expense ? 8,850 16,500 ? ? $6,000.00 $27,250.00 $6,400.00 ? $4,575.00 $1,235.00 $370.00 Review the following questions. Place an ‘X’ in the box to indicate which financial statement(s) report the desired information. Enter the amount reported…
In Year 1, Lee Incorporated billed its customers $56,300 for services performed. The company collected $40,600 of the amount billed. Lee incurred $37,900 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $21,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. 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? e. what is amount of net cash flow from investing activities? f. what is the amount of net cash flow from financing activities? g. what amounts of total assets, liabilities, and equity will be reported on the year-end sheet?
On January 2, Daniel Harrison contributed $20,000 to start his business. At the end of the year,the business had generated $30,000 in sales revenues, incurred $18,000 in operating expenses, anddistributed $5,000 for Daniel to use to pay some personal expenses. Prepare ( a ) a statement ofowner’s equity, assuming this is a sole proprietorship; ( b ) the owner’s equity section of the balancesheet, assuming this is a sole proprietorship; and ( c ) the stockholder’s equity section of the balancesheet, assuming this is a corporation with no-par value stock.
A sole proprietorship had the following assets and liabilities at the beginning and end of this year Assets LiabilitiesBeginning of the year . . . . . . . . . . . $ 60,000 $20,000End of the year . . . . . . . . . . . . . . . . . 105,000 36,000 Determine net income or net loss for the business during the year for each of the following separate cases. a. Owner made no investments in the business, and no withdrawals were made during the year. b. Owner made no investments in the business, but the owner withdrew $1,250 cash per month for personal use. c. Owner made no withdrawals during the year, but the owner did invest an additional $55,000 cash. d. Owner withdrew $1,250 cash per month for personal use, and the owner invested an additional $35,000 cash.
Lilo started operating a service proprietorship on April 1, 2021 with an initial cash investment of P100,000. The business provided P58,500 of services in April and received full payment in May. The business incurred expenses of P20,300 in April which were paid in June. During May, Lilo drew P4,300 against his capital account. What was the income to be reported for the 2 months ended May 2021 under cash basis?
In Year 1, Lee Incorporated billed its customers $56,300 for services performed. The company collected $40,600 of the amount billed. Lee incurred $37,900 of other operating expenses on account. Lee paid $24,400 of the accounts payable. Lee acquired $21,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. g. what amounts of total assets, liabilities, and equity will be reported on the year-end sheet?