Income statement This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses. Retained earnings statement This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders. Balance sheet This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity). This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities , which are depicted in accounting equation in the form of the mathematical equation. To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Toth Company had the following assets and liabilities on the dates indicated December 31 Total Assests total Liabilities 2016 400,000 260,000 2017 480,000 300,000 2018 590,000 400,000 Thot began business on January, 2016, with an investment of 100,000 from stockholders. Toth paid 15,000 in dividends for the year 2016. Instructions: From an analysis of the change in stockholders' equity during the year, compute the Net Income or Loss for: 1.- 2017, asuming stockholders made an additional investment of 50,000 and Toth paid no dividends in 2017. 2.- 2018, assuming stockholders made an aditional investment of 15,000 and Toth paid dividends of 30,000 in 2018.

On June 1, 2017, Waterway Industries was started with an initial investment in the company of $22,270 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations: Cash $ 5,500 Notes payable $13,800 Accounts receivable 4,490 Accounts payable 990 Service revenue 8,400 Supplies expense 1,060 Supplies 2,340 Maintenance and repairs expense 660 Advertising expense 400 Utilities expense 240 Equipment 26,900 Salaries and wages expense 2,300 Common stock 22,270 In June, the company issued no additional stock but paid dividends of $1,570. I need help turning this into a monthly income statement.

Please see the info below. They are all part of the same question. I need this asap please and thank you. It requires an income statment for the month of june, a retained earnings statement for the month of june, and a balance sheet for June 30, 2017. Please include the correct terminology. On June 1, 2017, Swifty Corporation was started with an initial investment in the company of $22,350 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations: Cash $ 5,070 Notes payable $12,940 Accounts receivable 4,150 Accounts payable 650 Service revenue 7,970 Supplies expense 1,100 Supplies 2,300 Maintenance and repairs expense 700 Advertising expense 400 Utilities expense 200 Equipment 26,470 Salaries and wages expense 1,870 Common stock 22,350 In June, the company issued no additional stock…

Answer 2

Question

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Answer 6

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

Answer 7

Chapter 1, Problem 1.3AP

(a)

To determine

Income statement

This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. Income statement is also known as operations statement, earnings statement, revenue statement, or profit and loss statement. The net income is the excess of revenue over expenses.

Retained earnings statement

This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment, and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.

Balance sheet

This is a financial statement that shows the available assets and claims to assets of a company at a particular point of time. Both the amount of assets and claims to assets remains always equal. Claims to assets are segregated into two categories, one is claims of creditors (liabilities) and the other is claims of stockholders (Stockholders’ equity).

This statement helps users to know about the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The primary constituents of balance sheet are the assets, the liabilities and the stockholders’ equities, which are depicted in accounting equation in the form of the mathematical equation.

To prepare: An income statement and a retained earnings statement for Company ES for the month of June and balance sheet at June 30, 2017.

Answer 8

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

Answer 9

(b)

To determine

To discuss: whether Company ES’s first month of operations was a success.

Answer 10

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Answer 11

(c)

To determine

To discuss: Company ES’s decision to distribute a dividend.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5Q Ch. 1 - Prob. 6Q Ch. 1 - What are the three main types of business...Ch. 1 - Prob. 8Q Ch. 1 - Prob. 9Q Ch. 1 - Prob. 10Q

Solution Summary: The author explains how to prepare an income statement and a retained earnings statement for Company ES.

Concept explainers

To discuss: whether Company ES’s first month of operations was a success.

To discuss: Company ES’s decision to distribute a dividend.

Want to see the full answer?

Chapter 1 Solutions