MYLAB ACCOUNTING WITH PEARSON ETEXT --
7th Edition
ISBN: 2819120053883
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 1, Problem 1.34E
Use the following information to answer Exercises E1-34 through E1-36.
The assets, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2016. The retained earnings was $31,000 at the beginning of the year with common stock of $20,000 and dividends of $55,000 at year end.
Notes Payable | $ 9,800 |
Rent Expense | 22,000 |
Cash | 3,100 |
Office Supplies | 4,500 |
Salaries Expense | 62,000 |
Property Tax Expense | 1,200 |
Office Furniture | $ 55,200 |
Utilities Expense | 6,500 |
Accounts Payable | 3,700 |
Service Revenue | 159,200 |
Accounts Receivable | 10, 200 |
Miscellaneous Expense | 4,000 |
Preparing the income statement
Prepare the income statement for Drought Design Studio for the year ending December 31, 2016.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Use the following information from Dubuque Company's financial statements.
From the Dec.31, 2018 balance sheet, changes from prior year:
Accounts Receivable
$8,600
Inventory
3,400
Prepaid Insurance
(2,200)
Accounts Payable
(4,000)
Sales Tax Payable
1,900
From the 2018 Income Statement:
Gain From Sale of Investments
$12,000
Depreciation Expense
26,500
Net Income
79,300
Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in
cash or cash payments.
Dubuque Company
Partial Statement of Cash Flows (Indirect Method)
For the Year Ended December 31, 2018
Operating Activities:
Net Income
Depreciation Expense
Gain From Sale of Investments
Accounts Receivable,
Inventory
%24
Use the following information to answer Exercises E1-34 through E1-36
The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained earnings was $39,000 at the beginning of the year. At year end, common stock was $13,000 and dividends were $57,000,
Preparing the statement of retained earnings
Prepare the statement of retained earnings for Damon Design Studio for the year ending December 31, 2018.
The Butler-Huron Company’s balance sheet and income statement for last year are as follows:Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $142 Accounts payable*** $808Accounts receivable* 941 Accrued liabilities Inventories** 1,607 (salaries and benefits) 508Other current assets 35 Other current liabilities 534Total current assets $2,725 Total current liabilities $1,850Plant and equipment (net) 3,029 Long-term debt and other Other assets 5,796 liabilities 2,228Total assets $5,796…
Chapter 1 Solutions
MYLAB ACCOUNTING WITH PEARSON ETEXT --
Ch. 1 - Prob. 1QCCh. 1 - Prob. 2QCCh. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - Prob. 16RQCh. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SECh. 1 - Prob. 1.3SECh. 1 - Prob. 1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Prob. 1.6SECh. 1 - Prob. 1.7SECh. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Prob. 1.11SECh. 1 - Prob. 1.12SECh. 1 - Prob. 1.13SECh. 1 - Prob. 1.14SECh. 1 - Prob. 1.15SECh. 1 - Prob. 1.16SECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.22ECh. 1 - Prob. 1.23ECh. 1 - Prob. 1.24ECh. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28ECh. 1 - Prob. 1.29ECh. 1 - Prob. 1.30ECh. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Prob. 1.33ECh. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Prob. 1.38ECh. 1 - Prob. 1.39ECh. 1 - Prob. 1.40ECh. 1 - Prob. 1.41APCh. 1 - Prob. 1.42APCh. 1 - Prob. 1.43APCh. 1 - Prob. 1.44APCh. 1 - Prob. 1.45APCh. 1 - Prob. 1.46APCh. 1 - Prob. 1.47APCh. 1 - Prob. 1.48BPCh. 1 - Prob. 1.49BPCh. 1 - Prob. 1.50BPCh. 1 - Prob. 1.51BPCh. 1 - Prob. 1.52BPCh. 1 - Prob. 1.53BPCh. 1 - Prob. 1.54BPCh. 1 - Prob. 1.55CPCh. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Green Moose Company has the following end-of-year balance sheet: Green Moose Company Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment $2,100,000 Total Debt $1,500,000 (cost minus depreciation) Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity $1,500,000 Total Assets $3,000,000 Total Liabilities and Equity $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Moose Company generated $350,000 net income on sales of $13,000,000. The firm…arrow_forwardPresented below are condensed data from the financial statements of Gallo Factory for 2017 and 2016. The figures are expressed in thousands. Use this information to answer the questions that follow. Accounts/Years Total current assets Property, plant & equipment (net of accumulated depreciation) Total assets Total current liabilities Long-term debt Deferred income taxes Total liabilities Total owner's equity 2020 $ 82,309 67,192 $149.501 $ 33,928 20,491 4.174 $ 58.593 90.908 $149.501 2019 $ 80,080 66,724 $146.471 $28,668 25,676 5,208 $59.552 86.919 $146.471 Total liabilities & owner's equity How much of Gallo Factory is financed by creditors at the end of December of 2020? Evaluate the change from 2019 to 2020.arrow_forwardCold Duck Manufacturing Inc. has the following end-of-year balance sheet: Cold Duck Manufacturing Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity $1,500,000 Total Assets $3,000,000 Total Liabilities and Equity $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Cold Duck Manufacturing Inc. generated $350,000 net income on sales of…arrow_forward
- Ivanhoe Automotive’s balance sheet at the end of its most recent fiscal year shows the following information: Ivanhoe AutomotiveBalance Sheet as of March 31, 2017 Assets: Liabilities and Equity: Cash and marketable sec. $40,000 Accounts payable and accruals $168,000 Accounts receivable 158,000 Notes payable 27,000 Inventory 232,000 Total current assets $430,000 Total current liabilities $195,000 Long-term debt 172,000 Total liabilities $367,000 Net plant and equipment 780,000 Common stock 317,000 Goodwill and other assets 92,000 Retained earnings 618,000 Total assets $1,302,000 Total liabilities and equity $1,302,000 In addition, it was reported that the firm had a net income of $159,000 on net sales of $4,200,000.Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using…arrow_forwardMotorola Credit Corporation's annual report: Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders' equity a. Find the total debt to total assets ratio. Note: Round your answer to the nearest hundredth percent. Total debt to total assets Return on equity b. Find the return on equity ratio. Note: Round your answer to the nearest hundredth percent. (dollars in millions) $ 297 163 2,175 1,880 295 Asset turnover c. Find the asset turnover ratio. Note: Round your answer to the nearest cent. Profit margin % % % d. Find the profit margin ratio on net sales. Note: Round your answer to the nearest hundredth percent.arrow_forwardGreen House, LLP's balance sheet at the end of its most recent fiscal year, shows the following information: Assets Liabilities and Stockholders’ Equity Cash and marketable securities $ 23,015 Accounts payable $ 163,257 Accounts receivable 141,258 Notes payable 21,115 Inventories 212,444 Total current assets $ 376,717 Total current liabilities $ 184,372 Long-term debt 168,022 Total liabilities $ 352,394 Net plant and equipment 711,256 Common stock 313,299 Goodwill and other assets 89,879 Retained earnings 512,159 Total assets $1,177,852 Total liabilities and stockholders’ equity $1,177,582 In addition, the company reported the following: Net income = $156,042 Sales = $4,063,589 COGS = $2,641,333 Determine the following values for the company: Cash ratio _____________ Inventory…arrow_forward
- III. Balance sheet of Company Beta dated 31.12.2015 showed the following accounts: a) fixed assets 60 000* b) trade receivables 12 500 c) cash in bank account 7 500 d) share capital 50 000 e) trade payables 20 000 f) long-term liabilities 10 000 accumulated depreciation of fixed assets 10 000 In January the company noted the following economic transactions: 1. Materials worth 6 500 were taken from the warehouse and used: a) for production purposes 5 000 b) as a casual office use 1 500 2. Company calculated salaries: a) of manufacturing workers 3 000 b) of administrative staff 5 000 c) of sales representatives 2000 3. Company paid by bank transfer a water bill: a) 1 000 for electricity used for production of goods b) 500 for electricity used for office purposes 4. Company paid 1 200 for interest on long-term liabilities 5. Company received a payment from customer 6 500 6. 1000 units of finished products were produced and taken into warehouse at manufacturing cost. Work in progress was…arrow_forwardPresented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Debits Credits Cash $ 38,000 Accounts receivable 166,000 Raw materials 42,000 Notes receivable 118,000 Interest receivable 21,000 Interest payable $ 23,000 Investment in debt securities 50,000 Land 68,000 Buildings 1,660,000 Accumulated depreciation—buildings 638,000 Work in process 60,000 Finished goods 107,000 Equipment 336,000 Accumulated depreciation—equipment 148,000 Patent (net) 138,000 Prepaid rent (for the next two years) 78,000 Deferred revenue 54,000 Accounts payable 198,000 Notes payable 580,000 Restricted cash (for payment of notes payable) 98,000 Allowance for uncollectible accounts 31,000 Sales revenue 1,160,000 Cost of goods sold 468,000 Rent expense 46,000 Additional Information: The notes receivable, along with any interest receivable, are…arrow_forwardAssume Metro Company had a net income of $2,100 for the year ending December 2018. Its beginning and ending total assets were $30,000 and $18,000, respectively. Calculate Metro's return on assets (ROA). (Round your percentage answer to two decimal places.) A. 7% B. 11.67% C. 4.38% D. 8.75%arrow_forward
- The Butler-Huron Company's balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities Accounts receivable* Inventories** Other current assets Total current assets Plant and equipment (net) Other assets Total assets $82 820 1,507 22 $2,431 3,967 6,460 $6,460 Liabilities and Equity Accounts payable****** Accrued liabilities (salaries and benefits) Other current liabilities Total current liabilities Long-term debt and other liabilities Earnings before taxes Taxes Earnings after taxes (net income) Common stock Retained earnings Net sales Cost of sales Selling, general, and administrative expenses Other expenses Total expenses Total stockholders' equity Total liabilities and equity **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) *Assume that all sales are…arrow_forwardAlaga Mo Patabain Ko Cooperative was established on November 2, 2016. Below are the balances financial position accounts on the beginning of December, 2016 and the transactions for December, 2016Total Liabilities is 40% of Total Members’ EquityTotal Non-Current Assets is 60% of Total AssetsCash and Cash Equivalents is P2,400,000 which is 40% of Total Current AssetsNet Surplus/(Net Loss) is (P650,500) based on the result of operation of November, 2016December, 2016 TransactionsInterest Income from Loans – P250,000Service of Income – P150,000Cost of Service – P85,000Membership Fees – P45,000Commission Income – P25,000Miscellaneous Income – P5,000Interest Expense from Deposits – P25,000Administrative Expense – P150,000Gains in Sale of Investment – P35,000Cooperative acquired a delivery truck by issuing a promissory notes worth P350,000 on December 1 with 10 years depreciation. This transaction was omitted in the book. The correct balance of Non-Current Assets as of December 31, 2016.…arrow_forwardnterpret the results of the debt to equity ratio and how the company has managed debt over the last two years. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000 Total Assets $1,647,000 $1,870,000 Account Payable $150,000 $100,000 Accruals 101,000 95,000 Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000 Total Liabilities 656,000 770,000 Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000 Total Stockholders’ Equity 991,000 1,100,000 Total Liabilities & Equity $1,647,000 $1,870,000 Income Statement…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License