FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
9th Edition
ISBN: 9781119595649
Author: Kimmel
Publisher: WILEY
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These items are taken from the financial statements of Pina Corporation for 2022.
Retained earnings (beginning of year)
$32,560
Utilities expense
2,150
Equipment
67,560
Accounts payable
21,790
Cash
11,480
Salaries and wages payable
6,130
Common stock
12,000
Dividends
12,000
Service revenue
72,550
Prepaid insurance
6,630
Maintenance and repairs expense
1,650
Depreciation expense
3,420
Accounts receivable
15,190
Insurance expense
2,380
Salaries and wages expense
41,550
Accumulated depreciation—equipment
18,980
Prepare a classified balance sheet as of December 31, 2022. (List Current Assets in order of liquidity.)
Presented here is information for Oriole Company for 2022. How to calculate the net income?
Retained earnings, January 1
$171,600
Service revenue
528,000
Total expenses
231,000
Dividends
85,800
Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional information from the accounting records of Red, Incorporated, are provided below:
RED, INCORPORATED
Comparative Balance Sheets
December 31, 2024 and 2023 ($ in millions)
2024
2023
Assets
Cash
$ 29
$ 114
Accounts receivable
188
137
Prepaid insurance
14
6
Inventory
252
180
Buildings and equipment
453
355
Less: Accumulated depreciation
(124)
(245)
$ 812
$ 547
Liabilities
Accounts payable
$ 95
$ 110
Accrued liabilities
13
20
Notes payable
25
0
Bonds payable
162
0
Shareholders’ Equity
Common stock
405
405
Retained earnings
112
12
$ 812
$ 547
RED, INCORPORATED
Statement of Income
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue
$ 2,030
Expenses
Cost of goods sold
$ 1,430
Depreciation expense
41
Operating expenses
434
1,905
Net income
$ 125
Additional information from the…
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