Question

orvos Google Scholar Cover Stories on Fli... Suggested Sites O Mail-mmontanye1.. ter 3 - Homework i Help The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $3,200 of supplies on account. July 1 Received $24,000 cash in advance for services to be provided over the next year. 20 Paid $1,500 of the accounts payable from April 10. Aug. 15 Billed a customer $18,000 for services provided during August. Sept. 15 Completed a job and received $8,400 cash for services rendered Oct. 1 Paid employee salaries of $12,000 cash. 15 Received $15,000 cash from accounts receivable. Nov. 16 Billed customers $42,000 for services rendered on account. Dec. 1 Paid a dividend of $15,000 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $3,600 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $280 was on hand at the end of the period. Problem 3-32A Part d d. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year! (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.) SMITH TRAINING COMPANY Financial Statements For the Year Ended December 31, Year 1

Prepare an;
income statement,
statement of changes in stockholders equity, balance sheet, and
statement of cash flow for Year One

Answer 1

Smith Training Co.
Income Statement
For the year ending xxxxxx
Revenues
Service Revenue	$           80,400
Total Revenues	$           80,400
Expenses
Salaries Expense	$           15,600
Rent expense	$           11,000
Supplies Expense	$             2,920
Total Expenses	$           29,520
Net Income	$           50,880

Smith Training Co.
Statement of Changes in Stockholders' Equity
For the year ending xxxxxx
Common Stock beginning balance	$                    -
Stock Issued	45000
Common Stock ending balance	$           45,000
Retained Earnings beginning balance
Net Income	$           50,880
Dividends	$           15,000
Retained Earnings ending balance	$           35,880

Smith Training Co.
Balance Sheet
At xxxxxx
ASSETS	Amount	Amount
Current Assets
Cash	$      39,900
Prepaid Rent	$      13,000
Supplies	$            280
Accounts Receivable	$      45,000
Total Current Assets		$             98,180
Property, Plant & Equipment
TOTAL ASSETS		$             98,180
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$        1,700
Deferred/Unearned Revenues	$      12,000
Salaries Payable	$        3,600
Total Current Liabilities		$             17,300
Notes Payable
Total Liabilities		$             17,300
STOCKHOLDER'S EQUITY
Common Stock	$      45,000
Retained Earnings	$      35,880
Total Equity		$             80,880
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY		$             98,180

Smith Training Co.
Statement of Cash Flows
For the year ending xxxxxx
	Amount
Cash Flows from Operating Activities:
Cash received from Customers	47,400
Payment to Suppliers	-25,500
Payment of Expenses	-12,000
Loss on sale of plant assets
Cash Provided by Operating Activities:	9,900
Cash Flows from Investing Activities:	-
Cash Flows from Financing Activities:
Issue of Common stock	45,000
Payment of Dividends	-15,000
Cash Used in Financing Activities:	30,000
Net Decrease in Cash	39,900
Add: Beginning Cash balance	-
Ending Cash Balance	39,900

Notes

The Income Statement shows the revenues, incomes, expense and losses of a business.

The Balance Sheet shows the assets, liabilities and equity of a business.

The statement of changes in stockholders equity shows the reasons for movement in equity balance from the beginning of the year to the end of the year.

The cash flow statement shows the movement in cash balance over the period. The ending balance of cash flow statement should match with the balance of cash given in the balance sheet.

B F 1068 Smith Training Co. 1069 Income Statement 1070 For the year ending XXXXXX 1071 Revenues 1072 Service Revenue = 18000+8400+42000+120 1073 Total Revenues =B1072 1074 Expenses 1075 Salaries Expense = 12000+3600 1076 Rent expense = 24000/24'11 1077 Supplies Expense =3200-280 1078 Total Expenses = SUM(B1075:B1077) 1079 Net Income =B1073-B1078 Smith Training Co. Statement of Changes in Stockholders' Equity For the year ending xxxxxx Common Stock beginning balance Stock Issued Common Stock ending balance Retained Earnings beginning balance Net Income Dividends Retained Earnings ending balance 45000 |ESUME 1071:E1072) =B1079 15000 =E1074+E1075-E1076

Smith Training Co. Statement of Cash Flors For the year ending XXXXXX Amount Cash Flows from Operating Activities: Cash received from Customers Payment to Suppliers Payment of Expenses Loss on sale of plant assets Cash Provided by Operating Activities: = 24000+8400+15000 =-24000-1500 - 12000 =SUM(L 1073:L1078) Cash Flors from Investing Activities: 0 1068 Smith Training Co. 1069 Balance Sheet 1070 At xxxxxx 1071 ASSETS Amount Amount 1072 Current Assets 1073 Cash =45000-24000+2400 1074 Prepaid Rent = 24000-11000 1075 Supplies = 3200-2920 1076 Accounts Receivable = 18000-15000+42000 1077 Total Current Assets =SUM(H1073:H1077) 1078 Property, Plant & Equipment 1079 1080 TOTAL ASSETS =SUMIH1079-H10791+ 1081 LIABILITIES & STOCKHOLDERS' EQUITY 1082 Current Liabilities 1083 Accounts Payable = 3200-1500 1084 Deferred/Unearned Revenues = 24000/2 1085 Salaries Payable 3600 1086 Total Current Liabilities =SUM(H1083:H1085) 1087 Notes Payable 1088 Total Liabilities OSUMIHIN86-110871 1089 STOCKHOLDER'S EQUITY 1090 Common Stock =E1073 1091 Retained Earnings =E1077 1092 Total Equity =H1091+H1090 1093 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY = 11092+11088 45000 Cash Flows from Financing Activities: Issue of Common stock Payment of Dividends Cash Used in Financing Activities: -15000 =SUMIL 1082: L 1083) |=L1077+#REF!+L1084 Net Decrease in Cash Add: Beginning Cash balance Ending Cash Balance =L1086+L1087

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