Question

Req ЗА Req 3B Req 3C Prepare a balance sheet at May 31, 2016. (Enter your answers in millions, not in whole dollars. Amounts to be deducted should be indic a minus sign.) ON TIME CORPORATION Balance Sheet (in millions) Accounts Payable Accounts Payable X 0 x 0 0 $ 0 $ Req 3B Req30 ) *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

Answer 1

Requirement 3A:

ON TIME CORPORATION Income Statement For the year ended May 31,2016 Revenues: Service revenue $50,800 Interest revenue $130 Total revenues $50,930 Expenses: Depreciation expense $3,500 Office expenses $7,650 Perpaid rent $1,400 Rent expense $3,600 Repairs and Maintenance Expense $3,000 Salaries and Wages expense $17,700 Transportation Expense $13,000 Interest expense $210 Income before income tax $870 Income tax expense $1,450 Net income (loss) ($580)

Requirement 3B:

ON TIME CORPORATION Statement of Retained earnings For the year ended May 31, 2016 Beginning balance, 6/1/2015 $16,440 Add: Net income ($580) (Less): Dividends ($280) Ending balance, 5/31/2016 $15,580

Requirement 3C:

ONE TIME CORPORATION Balance Sheet May 31,2016 (in millions) Assets Liabilities and stockholders' Equity Current assets: Current liabilities: Cash $6,000 Accounts payable $4,000 Accounts receivable $6,100 Income tax payable $1,450 Interest receivable $120 Salaries and Wages payable $2,800 Supplies $560 Notes payable (short-term) $850 Total current liabilities $9,100 Total current assets $12,780 Notes payable (long-term) $8,800 Equipment $40,300 Total liabilities $17,900 Accumulated depreciation ($20,700) Stockholders' Equity: Equipment, net $19,600 Common stock $3,800 Goodwill $4,900 Retained earnings $15,580 Total stockholders' equity $19,380 Total assets $37,280 Total liabilities and stockholders' equity $37,280