Homework Answers
| Income Statement | ||||
| Fees Earned | $ 620,000.00 | |||
| Less: | Expenses: | |||
| Interest Expense | $ 4,800.00 | |||
| Misc. Expense | $ 10,200.00 | |||
| Rent Expense | $ 70,000.00 | |||
| Salaries Expense | $ 272,000.00 | |||
| Utilities Expense | $ 85,000.00 | |||
| Taxes Expense | $ 43,000.00 | $ 485,000.00 | ||
| Net Income | $ 135,000.00 | |||
| Statement of Stockholder's Equity | |||||
| Beginning balance of Retained Earnings | $ - | ||||
| Add: | Net Income | $ 135,000.00 | |||
| Less: | Dividends | $ (15,000.00) | |||
| Ending balance of Retained Earnings | $ 120,000.00 | ||||
| Balance Sheet | ||||||
| Assets | Liability and Equity | |||||
| Cash | $ 60,000.00 | Notes Payable | $ 80,000.00 | |||
| Land | $ 215,000.00 | |||||
| Stockholder's Equity | ||||||
| Common Stock | $ 75,000.00 | |||||
| Retained Earnings | $ 120,000.00 | |||||
| Total | $ 275,000.00 | Total | $ 275,000.00 | |||
| Statement of Cash Flow | ||||||
| Cash flow from operating activities: | ||||||
| Cash from fees earned | $ 620,000.00 | |||||
| Cash paid for: | ||||||
| Interest Expense | $ (4,800.00) | |||||
| Misc. Expense | $ (10,200.00) | |||||
| Rent Expense | $ (70,000.00) | |||||
| Salaries Expense | $(272,000.00) | |||||
| Utilities Expense | $ (85,000.00) | |||||
| Taxes Expense | $ (43,000.00) | |||||
| Cash generated from operating activities | (A) | $ 135,000.00 | ||||
| Cash flow from investing activities: | ||||||
| Land purchased | $(215,000.00) | |||||
| Cash generated from investing activities | (B) | $(215,000.00) | ||||
| Cash flow from financing activities: | ||||||
| Dividend paid | $ (15,000.00) | |||||
| Common Stock Issued | $ 75,000.00 | |||||
| Notes payable Issued | $ 80,000.00 | |||||
| Cash generated from financing activities | (C) | $ 140,000.00 | ||||
| Net Cash generated | (A+B+C) | $ 60,000.00 | ||||
| Add: | Beginning cash balance | $ - | ||||
| Ending cash balance | $ 60,000.00 | |||||
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Chapter 2 Basic Accounting Systems: Cash Basis P2-3 Financial statements The following amounts were taken from the...
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