Chapter 2, Problem 2.9E

Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000

FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: a.Prepare an income statement. b.Compare your income statement with the income statement that is available at the FedEx Corporation Web site, (http://investors.fedex.com). Click on Annual Report and Download Annual Report. What similarities and differences do you see?

Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?

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.

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?

Prime Corporation prepared its annual financial statements for its shareholders for the fiscal year ending December 31, 2029. Record whether the transaction below for Prime Corporation overstated (O), understated (U), or correctly stated (C) total assets, total liabilities, stockholders' equity, and net income in 2029. You must write "O", "U", or "C" in each blank for credit. Prime Corp. did not adjust its unearned revenue account for the $8,000 of revenue earned in December 2029.  Assets: O/U/C? Liabilities: O/U/C? Equity: O/U/C? Net income: O/U/C?

Gary’s TV had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Interest expense $ 4,900 Paid-in capital 13,200 Accumulated depreciation 3,800 Notes payable (long-term) 43,000 Rent expense 10,200 Merchandise inventory 114,000 Accounts receivable 34,000 Depreciation expense 1,900 Land 27,000 Retained earnings 142,500 Cash 30,500 Cost of goods sold 228,000 Equipment 18,000 Income tax expense 42,000 Accounts payable 21,000 Net sales 350,000 Required: Calculate the difference between current assets and current liabilities for Gary’s TV at December 31, 2022. Calculate the total assets at December 31, 2022. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. Calculate the net income (or loss) for the…

During 2025, Rostock Company entered into the following transactions. 1. Purchased equipment for $286, 176 cash. 2. Issued common stock to investors for $137,590 cash. 3. Purchased inventory of $68,480 on account. Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Cash + Inventory + Equipment = Accounts Payable

Use the following information to prepare, in good form, an income statement, a statement of changes in equity, and a statement of financial position for Geelin Industries Ltd. for the month ended August 31, 2018: ...... Accounts payable..........................................................       $  9,375 ...... Accounts receivable......................................................           5,500 ...... Bank loan payable........................................................         13,750 ...... Cash..............................................................................         58,750 ...... Common shares............................................................         94,375 ...... Dividends declared.......................................................          6,250 ...... Income tax expense......................................................         17,375 ...... Insurance expense........................................................           2,125 ......…