3Required information[The following information applies to the questions displayed below.]At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:AccountCashAccounts receivableAccounts payableCommon stockRetained earningsThe following events apply to Oak Consulting for Year 2:1. Provided $65,600 of services on account.2. Incurred $3,000 of operating expenses on account.3. Collected $45,000 of accounts receivable.4. Paid $31,900 cash for salaries expense.5. Paid $13,320 cash as a partial payment on accounts payable.6. Paid a $9,900 cash dividend to the stockholders.c. Show the beginning balances and the transactions in a horizontal statements model.Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, usethe initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Notall cells require input.NumberBalance123456BalancelanataCashAssets+c. Show the beginning balances and the transactions in a horizontal statements model.Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, usethe initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Notall cells require input.++++++↓0 +AccountsReceivable======Balance$ 27,80024,70011,80027,80012,900==0 =OAK CONSULTINGEffect of Transactions on the Financial Statements for Year 2Balance SheetLinhibitionLiabilitiesAccountsPayableOAK CONSULTINGEffect of Transactions on the Financial Statements for Year 2Balance Sheet+++++++Stankhaldara! Excity.+0+Stockholders' EquityCommonStock++++0 +RetainedEarnings0RevenueIncome StatementIncome Statement-0-Expenses = Net Income======0 =Statement of Cash0Statement of CashFlows0

The horizontal statement model is a summary record of a financial statement. It shows the account…

Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings The following events apply to Oak Consulting for Year 2: 1. Provided $65,600 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $45,000 of accounts receivable. 4. Paid $31,900 cash for salaries expense. 5. Paid $13,320 cash as a partial payment on accounts payable. 6. Paid a $9,900 cash dividend to the stockholders. Balance $ 27,800 24,700 11,800 27,800 12,900 Show the beginning balances and the transactions in a horizontal statements model. te: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of C initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for cells require input. OAK CONSULTING

Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings The following events apply to Oak Consulting for Year 2: 1. Provided $65,600 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $45,000 of accounts receivable. 4. Paid $31,900 cash for salaries expense. 5. Paid $13,320 cash as a partial payment on accounts payable. 6. Paid a $9,900 cash dividend to the stockholders. Balance $ 27,800 24,700 11,800 27,800 12,900 Show the beginning balances and the transactions in a horizontal statements model. te: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of C initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for cells require input. OAK CONSULTING

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.5E: The Accounting Equation Using the accounting equation, answer each of the following independent...

See similar textbooks

Similar questions

Brief Exercise 1-24 The Accounting Equation Financial information for three independent cases is as follows: The liabilities of Dent Company are $82,000, and its stockholders' equity is $120,000. What is the amount of Dents total assets? The total assets of Wayne Inc. are $55,000, and its stockholders' equity is $22,500. What is the amount of Waynes total liabilities? Gordon Companys total assets increased by $60,000 during the year, and its liabilities decreased by $35,000. Did Gordons stockholders' equity increase or decrease? By how much? Required: Determine the missing amount for each case.
Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows: Common stock was 525,000 and retained earnings was 1,250,000 as of January 1, 20Y5. During the year, additional common stock of 50,000 was issued for cash, and dividends of 90,000 were paid. Instructions 1. Prepare an income statement for the year ended December 31, 20Y5. 2. Prepare a statement of stockholders equity for the year ended December 31, 20Y5. 3. Prepare a balance sheet as of December 31, 20Y5. 4. What items appears on both the statement of stockholders equity and the balance sheet?
P2-3 Financial statements The following amounts were taken from the accounting records of Padget Home Services, Inc.. as of December 31, 20Y7. Padget Home Services began its operations on January 1, 20Y7. Instructions Prepare an income statement for the year ending December 31. 2017. Prepare a statement of stockholdessrs equity for the year ending December 31, 2017. Prepare a balance sheet as of December 31, 2017. Prepare a statement of cash flows for the year ending December 31, 2017.
Income statement, retained earnings statement, and balance sheet The amounts of the assets and liabilities of Glacier Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $150000 and the common stock was $50000 as of October 1, 20Y5, the beginning of the current year. Dividends of $10000 were paid during the year. Instructions Prepare a balance sheet as of September 30, 20Y6.
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?
Income statement, retained earnings statement, and balance sheet The amounts of the assets and liabilities of Glacier Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $150000 and the common stock was $50000 as of October 1, 20Y5, the beginning of the current year. Dividends of $10000 were paid during the year. Instruction Prepare an income statement for the current year ended september 30, 20Y6.
The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total liabilities of $250,000. Using this information and the accounting equation, answer each of the following independent questions. What was the amount of Gingers owners equity at the beginning of the year? If Gingers total assets increased by $100,000 and its total liabilities increased by $77,000 during the year, what was the amount of Gingers owners equity at the end of the year? If Gingers total liabilities increased by $33,000 and its owners equity decreased by $58,000 during the year, what was the amount of its total assets at the end of the year? If Gingers total assets doubled to $1,000,000 and its owners equity remained the same during the year, what was the amount of its total liabilities at the end of the year?
Net income and dividends The income statement of a corporation for the month of February indicates a net income of $32,000. During the same period, $40,000 in cash dividends were paid. Would it be correct to say that the business Incurred a net loss of $8000 during the month? Discuss.
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
Multiple-step income statement and report form of balance sheet The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30. 20Y8: Instructions Prepare a statement of stockholders’ equity. No common stock was issued during the year.
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. Hershey had total assets of $4,412 (million) at the beginning of the year. Compute the return on assets for Hershey for the year shown in Exhibits 6-9.
Brief Exercise 3-28 Accrual- and Cash-Basis Accounting The following are several transactions for Halpin Advertising Company. Purchased $1,000 of supplies. 0Sold $5,000 of advertising services, on account, to customers. Used $250 of supplies. Collected $3,000 from customers in payment of their accounts. Purchased equipment for $10,000 cash. Recorded $500 depreciation on the equipment for the current period. Required: Identify the effect, if any, that each of the above transactions would have on net income under cash-basis accounting and accrual-basis accounting.