Question

Pharoah Company is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees) $198,000 Dividends $13,500 Sales revenue (from general store) 37,500 Notes payable 75,000 Accounts payable 16,500 Expenses during 2017 189,000 Cash 12,750 Supplies 8,250 Equipment 171,000 Common stock 60,000 Retained earnings (1/1/2017) 7,500

Determine Pharoah Company’s net income for 2017. Pharoah Company’s net income for 2017 $enter Pharoah Company’s net income for 2017 in dollars

Prepare a retained earnings statement for Pharoah Company year ended December 31, 2017. (List items that increase retained earnings first.) Pharoah Company Retained Earnings Statement choose the accounting period For the Year Ended December 31, 2017December 31, 2017For the Month Ended December 31, 2017 select an opening name DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a dollar amount select between addition and deduction AddLess : select an item DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues enter a dollar amount enter a subtotal of the two previous amounts select between addition and deduction AddLess : select an item DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues enter a dollar amount select a closing name DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $enter a total amount

Prepare a balance sheet for Pharoah Company as of December 31, 2017. (List assets in order of liquidity.) Pharoah Company Balance Sheet choose the accounting period For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017 Assets enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a closing name for the first part of the balance sheet Current AssetsIntangible AssetsLiabilitiesLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-Term InvestmentsTotal Long-Term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity $enter a total amount for the first part of the balance sheet Liabilities and Stockholders' Equity select an opening name for section one Current AssetsIntangible AssetsLiabilitiesLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-Term InvestmentsTotal Long-Term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount select a closing name for section one     Current Assets    Intangible Assets    Liabilities    Long-Term Investments    Long-Term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-Term Investments    Total Long-Term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity     $enter a subtotal of the two previous amounts select an opening name for section two Current AssetsIntangible AssetsLiabilitiesLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-Term InvestmentsTotal Long-Term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a closing name for section two     Current Assets    Intangible Assets    Liabilities    Long-Term Investments    Long-Term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-Term Investments    Total Long-Term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity     enter a subtotal of the two previous amounts select a closing name for the second part of the balance sheet Current AssetsIntangible AssetsLiabilitiesLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-Term InvestmentsTotal Long-Term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity $enter a total amount for the second part of the balance sheet

Answer 1

Net income = Service revenue + Sales revenue - Expenses

Net income = $198,000+37,500-189,000 = $46,500

Pharoah Company Retained Earnings Statement For The Year Ended December 31, 2017
Retained earning, January 1	$7,500
Add: Net income (loss)	46,500
Less: Dividend	(13,500)
Retained earning, December 31	$40,500

Pharoah Company Balance Sheet December 31, 2017
Assets
Current Assets
Cash	$12,750
Supplies	8,250
Total current assets	21,000
Property, plant and equipment
Equipment	171,000
Total assets		$192,000
Liabilities and stockholders equity
Liabilities
Accounts payable	16,500
Long term liabilities
Notes payable	75,000
Total liabilities	91,500
Common stock	60,000
Retained earnings	40,500
Total liabilities and stockholders equity		$192,000