Finance
On January 1, Year 2, the following information was drawn from the accounting records of Carter Company: cash of $800; land of $3,500; notes payable of $600; and common stock of $1,000.
Required
a & b. Determine the amount of retained earnings as of January 1, Year 2. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $1,000 cash dividend to the stockholders. Can the company pay this dividend?
c to e. As of January 1, Year 2, what percentage of the assets were acquired from creditors, investors and retained earnings?
f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation.
g-1. During Year 2, Carter Company earned cash revenue of $1,800, paid cash expenses of $1,200, and paid a cash dividend of $500. (Hint: It is helpful to record these events under an accounting equation before preparing the statements.)
g-2. Prepare an income statement dated December 31, Year 2.
g-3. Prepare a statement of changes in stockholders’ equity dated December 31, Year 2.
g-4. Prepare a balance sheet dated December 31, Year 2.
g-5. Prepare a statement of cash flows dated December 31, Year 2.
i. What is the largest cash dividend that Carter could pay on December 31, Year 2?
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Majka Company was started on January 1, Year 1. During Year 1, the company experienced the...
Majka Company was started on January 1, Year 1. During Year 1,
the company experienced the following three accounting events: (1)
earned cash revenues of $33,700, (2) paid cash expenses of $14,900,
and (3) paid a $3,200 cash dividend to its stockholders. These were
the only events that affected the company during Year 1
Required
a. Record the effects of each accounting event
under the appropriate general ledger account headings.
b. Prepare an income statement, statement of
changes in stockholders’...
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Milka Company was started on January 1, 2018. During 2018, the company experienced the following three...
Milka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: 0 earned cash revenues of $29,800, (2) paid cash expenses of $13.600. and (3) paid a $1,900 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required a. Record the effects of each accounting event under the appropriate general ledger account headings. b. Prepare an income statement, statement of changes in stockholders' equity, and a...
Majka Company was started on January 1, Year 1. During Year 1,
the company experienced the following three accounting events: (1)
earned cash revenues of $33,700, (2) paid cash expenses of $14,900,
and (3) paid a $3,200 cash dividend to its stockholders. These were
the only events that affected the company during Year 1
Required
a. Record the effects of each accounting event
under the appropriate general ledger account headings.
b. Prepare an income statement, statement of
changes in stockholders’...
Majka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $33,700, (2) paid cash expenses of $14,900, and (3) paid a $3,200 cash dividend to its stockholders. These were the only events that affected the company during Year 1. Required a. Record the effects of each accounting event under the appropriate general ledger account headings. b. Prepare an income statement, statement of changes in stockholders'...
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T a Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: (1) earned cash revenues of $32,800, (2) paid cash expenses of $14.600, and (3) paid a $2,900 cash dividend to its stockholders. These were the only events that affected the company during 2018, Required a. Record the effects of each accounting event under the appropriate general ledger account headings b. Prepare an income statement, statement of changes in stockholders' equity, and...
Exercise 1-15A Preparing an income statement and a balance sheet LO 1-7 Majka Company was started on January 1 Year 1 During Year 1, the company experienced the following three accounting events (1) earned cash revenues of $29.500.(2) paid cash expenses of $13,500, and (3) paid a $1.800 cash dividend to its stockholders. These were the only events that affected the company during Year 1 Required a. Record the effects of each accounting event under the appropriate general ledger account...
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Dakota Company experienced the following events during Year 2. 1. Acquired $10,000 cash from the issue of common stock 2. Paid $25,000 cash to purchase land. 3. Borrowed $7,500 cash. 4. Provided services for $37,500 cash. 5. Paid $1,500 cash for utilities expense. 6. Paid $22,500 cash for other operating expenses. 7. Paid a $2,500 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $30,000. Required a. The January...
Milka Company was started on January 1, 2018. During 2018, the company experienced the following three accounting events: 0 earned cash revenues of $29,800, (2) paid cash expenses of $13.600. and (3) paid a $1,900 cash dividend to its stockholders. These were the only events that affected the company during 2018. Required a. Record the effects of each accounting event under the appropriate general ledger account headings. b. Prepare an income statement, statement of changes in stockholders' equity, and a...
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