whats the income statement? LiabilitiesEquityNotes Payable wages Payable Common Stock APICIncome StatementCash FlowCashEquipmentBuildingAccounts DividendExpensesNet incomeRetaingEaming2,00,000 $ 1,00,000 $116,167AccountsInventoryLandAccumulatedAccount TitleRevenueTypeAmountreceivableDepreciationPayable Payable8.333 S 1.18.000$ 2.57.000$ 5,50,000$ 15,00,000S 3,00,000Beginning Bolonces as of Dec 31, Year 1LAcquired $550.000 by signing a note payable wilth a local bank2. Sold 25.000 shares of $22 Common Stock for $1.SO0.0003. Purchased Eauipment for $300.0004. Purchased inventory on Account - 25.000 Units ot $1.15 per unitSa. Sold 15.000 units at $3.50 on AccountSb. COGS for Sales on Account6. Colect 70.000 on Account7. Pold $117.250 of Accounts Payoble8. Purchased inventory on Account - 170.000 Units ot $1.50 per unit9a. Sold 175.000 units at $3.50 on Account9b. COGS for Sales on Account10. Collect $472.500 on Account1. Paid $218.600 of Accounts Payable12. Purchosed Inventory on Account - 275.000 Units at $1.35 per unit130. Sold 200.000 units ot $3.50 on Account13b. COGS for Soles on Account14. Collect $735.000 on Account15. Paid $494.150 of Accounts Payable16. Purchased Inventory on Account - 300.000 Units ot $1.15 per unit17. Paid Soles & Morkeing Expenes of $30.00018. Paid Operating Expenses of $75.70819. Record Woges Payable of $40.00020. Paid Product Line Reseorch & Development Expenses of $150.00021. Paid Advertising Expenses of $87.500S 2,57,000 S5 5.50.000$ 15,00,00017,500 S 28,000$$ 50,000 S 2,50,000. S5.50,000$ 15,00,000FinancingFinancingS 3,00,000$ 3,00,000Investine28,7502現750Non-Cash52,500Sales revenue52,500Non-Cash$ 29,150Non CashCost of Goods Sold29.150$ 70,000$ 1,17,25070,000 S-70,000OperatingS 1,17,250S 1,17,250$ 2,55,000Operating$ 2,55,000Non-Cash$ 6,12,500Sales revenue$ 6.12500Non CashS 2,53,900Cost of Goods SoldS 2,53.900Non-Cash$ 4,72,500 S 4,72,500$ 2,18,600$ 4,72,500S 2.18.600Operating$ 3,18600$ 3,71,250OperatingS 3,71,250Non Cash$ 7,00,000Sales revenue$ 7,00,000Non-CashS 3.39.150Cost of Goods Sold$ 3,39,150Non-CashS 7,35,000 S -7,35,000$ 4,54,150$ 7,35,000$ 4,94,150Operating$ 4,4.150$ 3,45,000Operating$ 345,000Non-Cash30,000$ 75,708$ 40,000$ -1,50,000S 47,50030,000Sales & Marketing ExpensesOperating Expensses30,000OperatingOperatingOperating-75,708-75,708$ 40,00040.000$ -1,50,000Research expenses$ 1,50.000OperatingIs 47,500Advertising Expenses87,500Operating22. Mode the yeaty required payment on the note payable. The note caries a 7%nterest rate and requires payments of $50.000 plus interest each December 31.$48.500-50,000Interest Expenses-38.500Operating$ 48,50023. Record first year of Depreciation on Equipment Purchased in Year 2 with SalvageValue of $38.000 & useful ile of 7 Yrs24. Declared a $10.000 cash dividend for stockholders25. Poid a $10000 coh dividend for stockholdersBalance at end of Y 237,429Depreciation Expenses37,429Non-Cash$ 10,000S 10,000$ -10,000Non-CashS 10,000Financing$ 10,000S 19,72.792 S 1,05.000 S 4.05,800 S 300,000 S 50.000 S 2,50.000 s45,762 $ 238.000 S$ 5.00.000 $40,000 $17,00,000 $ 100.000 $1,66,167s$ 11,65.000 $-10,41,337 S$ 19,72,792Since no par value mentioned, all amount are taken into common stock

The income statement is prepared to find net income or losses incurred during the period.

Liabilities Equity Notes Pavable Wages Payable Common Stock APIC Income Statement Cash Flow Cash Accounts Inventory Equipment Land Bulding Accumulated Accounts Dividend Retaing Account Title Revenue Expenses Net income Type Amount receivable Depreciation Payable Payable Eamings Beginning talonces.os.of Dec 31, Year LAcquired $550.000 by signing a note payable with a local bank 2. Sold 25.000 shares of $22 Common Stock for $1. S00.000 3. Purchased taioment for $300.000 4. Purchased inventory on Account - 25.000 Units ot $1.15 per unit Sa. Sold 15.000 units at $3.50 on Account Sb. COGS for Sales on Account 6. Colect $70.000 on Account Z. Pold $117.250 of Accounts Payoble 8. Purchased inventory on Account - 170.000 Units ot $1.50 per unit 90. Sold 175.000 units at $3 50 on Account 9b. COGS for Sales on Account 10. Collect $472.500 on Account 1. Paid $218.600 of Accounts Payable 12. Purchosed inventory on Account- 275.000 Units at $1.35 per unit 130. Sold 200.000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735.000 on Account 15. Paid $494150 of Accounts Payable 16. Purchased Inventory on Account -300.000 Units at $1.15per unit 17. Paid Soles& Morketing Expenses of $30.000 18. Paid Operating Expenses of S75.708 19. Record Woges Payable of $40.000 20. Paid Product Line Research & Development Expenses of $150.000 21. Paid Advertising Expenses of 87.500 S 50.000 S 2.50.000S 2.00.000 S 1.00.000 S176.167 S 2,57,000 S S 5,50,000 $ 15,00.000 $ 2,57,000 $ S 15,00,000 S 3,00,000 17,500 S 28.000 S 8,333 S 1,18,000 $ 5,50,000 Financing Financing 5.50.000 $ 15,00,000 S 3,00,000 3,00,000 Investing $ 21,750 $ 28,750 28,750 Non-Cash 52,500 Sales revenue $ $2.500 Non-Cash Non Cash Operating 29,150 Cost of Goods Sold 29,150 $ 70,000 S S 1,17,250 $ S 1.17.250 -70,000 70,000 S 4,17.250 $ 2,55,000 Operating $ 2,55,000 Non-Cash $ 12.500 Sales revenue $ 612.500 Non-Cash S 2.53,900 Cost of Goods Sold $ 2.53.900 Non-Cash $ 4,72,500 S 4,72,500 Operating $ 4,72,500 $ 2,18,600 Operating Non Cash Non Cash $ 2,18,600 S 3,71,250 S 3,71,250 S 7.00,000 Sales revenue $ 7.00.000 $ ,150 Cost of Goods Sold $ 3,39,150 Non-Cash S 7,35,000 S 7,35,000 S 7,35,000 $ 494.150 Operating $ 4,54,150 Operating $ 345,000 $ 3,45,000 Non-Cash 30,000 Is Sales & Marketing Expenses Operating Expenses 30.000 Operating Operating S Operating 30,000 -75,708 $ 40,000 Is 4,50,000 -75,708 -75,708 $ 40,000 $ 4,50,000 $ 47.500 40,000 Research expenses $ 1,50.000 Operating 47,500 Advertising Expenses 47.500 Operatine 22. Mode the yeaty required payment on the note payable. The note caries a 75 nterest rate and requires payments of $50.000 plus interest each December 31. 4500 -50,000 Interest Expenses -38.500 Operating 48,500 23. Record first year of Deprecialion on Equipment Purchased in Year 2 with Salvage Value of $38.00 & useful ite of 7 Ys 24. Declored a $10.000 cash dividend for stockholders P5Paid a $10.000 coh dividend for stockholders Balance ot end of Y 2 37,429 Depreciation Expenses 37,429 Non-Cash $ 10,000 S 10,000 $-10,000 Non-Cash S $ 19,72,792 S 10,000 Financing 10.000 $ 19,72.792 S 105,000 $ 4.05,800 $ 1.00,000 S s0.000 S 2,50.000 3,00,000 $ S0.000 $ 2,50,000 45,762 $ 288.000 S 40,000 $ 17,00,000 $ 100.000 $166,167 S $ 11,65,000 S-10,41,337 S 5,00,000 S

Liabilities Equity Notes Pavable Wages Payable Common Stock APIC Income Statement Cash Flow Cash Accounts Inventory Equipment Land Bulding Accumulated Accounts Dividend Retaing Account Title Revenue Expenses Net income Type Amount receivable Depreciation Payable Payable Eamings Beginning talonces.os.of Dec 31, Year LAcquired $550.000 by signing a note payable with a local bank 2. Sold 25.000 shares of $22 Common Stock for $1. S00.000 3. Purchased taioment for $300.000 4. Purchased inventory on Account - 25.000 Units ot $1.15 per unit Sa. Sold 15.000 units at $3.50 on Account Sb. COGS for Sales on Account 6. Colect $70.000 on Account Z. Pold $117.250 of Accounts Payoble 8. Purchased inventory on Account - 170.000 Units ot $1.50 per unit 90. Sold 175.000 units at $3 50 on Account 9b. COGS for Sales on Account 10. Collect $472.500 on Account 1. Paid $218.600 of Accounts Payable 12. Purchosed inventory on Account- 275.000 Units at $1.35 per unit 130. Sold 200.000 units at $3.50 on Account 13b. COGS for Sales on Account 14. Collect $735.000 on Account 15. Paid $494150 of Accounts Payable 16. Purchased Inventory on Account -300.000 Units at $1.15per unit 17. Paid Soles& Morketing Expenses of $30.000 18. Paid Operating Expenses of S75.708 19. Record Woges Payable of $40.000 20. Paid Product Line Research & Development Expenses of $150.000 21. Paid Advertising Expenses of 87.500 S 50.000 S 2.50.000S 2.00.000 S 1.00.000 S176.167 S 2,57,000 S S 5,50,000 $ 15,00.000 $ 2,57,000 $ S 15,00,000 S 3,00,000 17,500 S 28.000 S 8,333 S 1,18,000 $ 5,50,000 Financing Financing 5.50.000 $ 15,00,000 S 3,00,000 3,00,000 Investing $ 21,750 $ 28,750 28,750 Non-Cash 52,500 Sales revenue $ $2.500 Non-Cash Non Cash Operating 29,150 Cost of Goods Sold 29,150 $ 70,000 S S 1,17,250 $ S 1.17.250 -70,000 70,000 S 4,17.250 $ 2,55,000 Operating $ 2,55,000 Non-Cash $ 12.500 Sales revenue $ 612.500 Non-Cash S 2.53,900 Cost of Goods Sold $ 2.53.900 Non-Cash $ 4,72,500 S 4,72,500 Operating $ 4,72,500 $ 2,18,600 Operating Non Cash Non Cash $ 2,18,600 S 3,71,250 S 3,71,250 S 7.00,000 Sales revenue $ 7.00.000 $ ,150 Cost of Goods Sold $ 3,39,150 Non-Cash S 7,35,000 S 7,35,000 S 7,35,000 $ 494.150 Operating $ 4,54,150 Operating $ 345,000 $ 3,45,000 Non-Cash 30,000 Is Sales & Marketing Expenses Operating Expenses 30.000 Operating Operating S Operating 30,000 -75,708 $ 40,000 Is 4,50,000 -75,708 -75,708 $ 40,000 $ 4,50,000 $ 47.500 40,000 Research expenses $ 1,50.000 Operating 47,500 Advertising Expenses 47.500 Operatine 22. Mode the yeaty required payment on the note payable. The note caries a 75 nterest rate and requires payments of $50.000 plus interest each December 31. 4500 -50,000 Interest Expenses -38.500 Operating 48,500 23. Record first year of Deprecialion on Equipment Purchased in Year 2 with Salvage Value of $38.00 & useful ite of 7 Ys 24. Declored a $10.000 cash dividend for stockholders P5Paid a $10.000 coh dividend for stockholders Balance ot end of Y 2 37,429 Depreciation Expenses 37,429 Non-Cash $ 10,000 S 10,000 $-10,000 Non-Cash S $ 19,72,792 S 10,000 Financing 10.000 $ 19,72.792 S 105,000 $ 4.05,800 $ 1.00,000 S s0.000 S 2,50.000 3,00,000 $ S0.000 $ 2,50,000 45,762 $ 288.000 S 40,000 $ 17,00,000 $ 100.000 $166,167 S $ 11,65,000 S-10,41,337 S 5,00,000 S

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 38CE: Stockholder Payout Ratios The following information pertains to Milo Mindbender Corporation:...

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