As of December 31, Year 1, Flowers Company had total assets of $80,000, total liabilities of $24,000, and common stock of $40,000. The company's Year 1 income statement contained revenue of $14,000 and expenses of $8,000. The Year 1 statement of changes in stockholders' equity stated that $900 of dividends were paid to investors. Required a. Determine the before-closing balance in the Retained Earnings account on December 31, Year 1. b. Determine the after-closing balance in the Retained Earnings account on December 31, Year 1. c. Determine the before-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 1. d. Determine the after-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 1. f. On January 1, Year 2, Flowers Company raised $19,000 by issuing additional common stock. Immediately after the additional capital was raised, Flowers reported total stockholders' equity of $75,000. Are the stockholders of Flowers in a better financial position than they were on December 31, Year 1?
As of December 31, Year 1, Flowers Company had total assets of $80,000, total liabilities of $24,000, and common stock of $40,000. The company's Year 1 income statement contained revenue of $14,000 and expenses of $8,000. The Year 1 statement of changes in stockholders' equity stated that $900 of dividends were paid to investors. Required a. Determine the before-closing balance in the Retained Earnings account on December 31, Year 1. b. Determine the after-closing balance in the Retained Earnings account on December 31, Year 1. c. Determine the before-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 1. d. Determine the after-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 1. f. On January 1, Year 2, Flowers Company raised $19,000 by issuing additional common stock. Immediately after the additional capital was raised, Flowers reported total stockholders' equity of $75,000. Are the stockholders of Flowers in a better financial position than they were on December 31, Year 1?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 2PA: Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and...
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