a) | Net Income | $ 24.00 | |||
Net Profit Margin | 14.63% | ($ 24/ $ 164) | |||
b) | By observing the balance sheet, we could easily conclude that the main source of finance | ||||
for the company it it's stockholder's equity | |||||
c) | Current Assets | $ 101.00 | |||
Current Liabilities | $ 44.00 | ||||
Ratio | 2.30 | ($ 101 / $ 44) |
Workings:
Income Statement | ||||
Service Revenue | $ 164.00 | |||
Less: | Expenses: | |||
Salaries and Wages Expense | $ 98.00 | |||
Depreciation Expense | $ 7.00 | |||
Amortization Expense | $ 7.00 | |||
Income Tax Expense | $ 9.00 | |||
Interest Expense | $ 2.00 | |||
Supplies Expense | $ 17.00 | |||
Net Income | $ 24.00 |
Statement of Retained Earnings | |||
Beginning Balance | $ 7.00 | ||
Add: | Net Income | $ 24.00 | |
Ending Balance | $ 31.00 |
Balance Sheet | ||||
Current Assets | ||||
Cash | $ 70.00 | |||
Accounts Receivable | $ 20.00 | |||
Supplies | $ 11.00 | |||
Non- Current Assets | ||||
Land | $ 7.00 | |||
Equipment | $ 62.00 | |||
Less: | Accu. Dep | $ (14.00) | $ 48.00 | |
Software | $ 30.00 | |||
Less: | Accu. Amor | $ (14.00) | $ 16.00 | |
$ 172.00 | ||||
Current Liabilities | ||||
Accounts Payable | $ 9.00 | |||
Notes Payable | $ 13.00 | |||
Salaries and Wages Payable | $ 11.00 | |||
Interest Payable | $ 2.00 | |||
Income Tax Payable | $ 9.00 | |||
$ 44.00 | ||||
Stockholder's Equity | ||||
Common Stock | $ 97.00 | |||
Retained Earnings | $ 31.00 | |||
$ 128.00 | ||||
$ 172.00 |
a. How much net income did J & G Tool, Inc., generate during 2018? What was...
a. Prepare an income statement. b. Prepare the statement of retained earnings. c. Prepare the balance sheet. Transactions and events during 2018 (summarized in thousands of dollars) follow: A. Borrowed S13 cash on March 1 using a short-term note. B. Purchased land on March 2 for future building site; paid cash, $7. C. Issued additional shares of common stock on April 3 for $25. D. Purchased software on July 4, S12 cash. E. Purchased supplies on account on October 5...
Record the adjusting journal entries (k) through (p). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) Post the adjusting entries and prepare an adjusted trial balance. (Enter your answers in thousands of dollars.) Required information The following information applies to the questions displayed below) Intemational celebrity Jay and Goku began operations of their machine shop (J&G Tool, Inc.) on January 1, 2016. The...
Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry. (Enter your answers in thousands of dollars.) Required information The following information applies to the questions displayed below) Intemnational celebrity Jay and Goku began operations of their machine shop (J&G Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify): Debit Credit $ 2 6 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short- term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify): Debit Credit $ 2 6 Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short- term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Debit Credit $ 3 $ Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify) Debit Credit Account Titles $ Cash 2 Accounts Receivable 6 Supplies 13 Land 0 Equipment Accumulated Depreciation Software Accumulated Amortization 70 $ 5 15 5 Accounts Payable Notes Payable (short- term) Salaries and Wages Payable...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H&H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify: Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (Short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Comon Stock Retained Earnings Service Revenue Salaries and Wages Expense...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows the amounts are rounded to thousands of dollars to simplify: Debit Credit Account Titles Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 62 Accumulated Depreciation $ 7 Software 18 Accumulated Amortization 7 Accounts Payable 6 Notes Payable (short-term) 0 Salaries and Wages...