FUND OF FIN ACCTG W/ CONNECT (LL) >BI<
FUND OF FIN ACCTG W/ CONNECT (LL) >BI<
16th Edition
ISBN: 9781260024500
Author: PHILLIPS
Publisher: MCG
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Textbook Question
Chapter 1, Problem 1.9E

Preparing an Income Statement and Balance Sheet

Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data are available:

Total Revenues $131,000
Operating Expenses 90,500
Cash 30,000
Accounts Receivable 25,300
Supplies 40,700
Accounts Payable 25,700
Common Stock 30,600

No dividends were declared or paid during January.

Required:

  1. 1. Complete the following income statement and balance sheet for the month of January.

MIAMI MUSIC CORPORATION

Income Statement For the Month Ended January 31

Total Revenues $_____
Operating Expenses _____
Net Income $_____

MIAMI MUSIC CORPORATION

Balance Sheet At January 31

Assets
Cash $_____
Accounts Receivable _____
Supplies _____
Total Assets $_____
Liabilities
Accounts Payable $_____
Total Liabilities
Stockholders’ Equity
Common Stock _____
Retained Earnings _____
Total Stockholders’ Equity _____
Total Liabilities and Stockholders’ Equity $_____
  1. 2. Did Miami Music Corporation generate a profit? Which financial statement indicates this?
  2. 3. Docs Miami Music Corporation have sufficient resources to pay its liabilities? Which financial statement indicates this?
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Chapter 1 Solutions

FUND OF FIN ACCTG W/ CONNECT (LL) >BI<

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