Question

Accounting Questions

X Workshop 1 Problems Student Q. Search Sheet Page Layout Formulas Review View Home Insert Data X Cut 2 AutoSum Calibri (Body) 12 Number E Wrap Text 9 Copy E Fill - Merge & Center .0 .00 .00 % ) Paste B Conditional Format Cell Styles Insert Delete Format Sort & Filter Clear Format Formatting as Table fx E46 A к м т AA AB 1 1.5 The Accounting Equation and Financial Statements 15 pts. Problem and Directions: The New Life Dance Company had the following events during 2019: 1 Earned revenues of $50,000 2 Paid Cash for expenses of $23,000 3 Paid a $4,500 dividend to stackholders 8 Note: On the Balance Sheet under each major category (Asset, Liability and Stockholders Equity) item, when you click in the yellow box, a drop down menu wil appear. Select the correct item to complete the 9 information. 10 a) Complete the accounting equation for the different transactions. 11 12 New Life Dance Company 13 Accounting Equation 14 15 Event Assets Liabilities Stockholders Equity Retained Earnings 16 Cash Common Stock+ $ 50,000 4,500 17 23,000 22,500 18 19 $ 50,000-$ 4,500 + $ + $ 20 Total 23,000 22,500 %3D 21 b) Prepare an income statement for 2019 22 23 The New Life Dance Company 24 25 Income Statement Far the Year Ended December 31,2019 26 27 28 Revenue 50,000 29 Екрегse 27,500 30 Net Income 77,500 31 32 C) Prepare a year-end balance Sheet 33 The New Life Dance Company 34 35 Balance Sheet 36 As of December 31, 2019 37 38 Assets 50,000 39 Cash Retainted Earnings 40 23000 41 Total Assets 73,000 42 Liabilities Retainted Earnings 43 44 Total Liabilities 4,500 45 Stockholders Equity Retainted 46 Earnings 47 48 Total Stockhalders Equity 49 Total Liabilities and Stockholders Equity 50 51 52 53 Problem 1.2 Problem 1.3 Problem 1.4 Problem 1.1 Problem 1.5 Problem 1.6 Ready 75% ab

Answer 1

a)

New Life Dance Company
Accounting Equation
Events	Assets		Liabilities	+	Stockholders' Equity
	Cash	=			Common stock	+	Retained Earnings
1	$50,000						$50,000
2	($23,000)						($23,000)
3	($4,500)						($4,500)
Total	$22,500						$22,500

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b)

Prepare income statement as follows:

New Life Dance Company
Income Statement
For the year ended December 31, 2019
Revenue	$50,000
Expense	($23,000)
Net Income	$27,000

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Prepare balance sheet as follows:

New Life Dance Company
Balance Sheet
As of December 31, 2019
Assets:
Cash	$22,500
Total Assets	$22,500
Liabilities	$0
Stockholders' Equity	$22,500
Total liabilities & Stockholders' Equity	$22,500