Problem 2-36 GBA 5205 Accounting Survey of Accounting Fifth Edition by Edmonds (
ID: 2397441 • Letter: P
Question
Problem 2-36
GBA 5205 Accounting
Survey of Accounting Fifth Edition by Edmonds (ISBN 9781307078473)
L wnat amount or net income wousa oe reportea on une income statement m. What amount of retained earnings would be reported on the balance sheet? Problem 2-36 Identifying and arranging elements on financial statements The following accounts and balances were drawn from the records of Barker Company at Decem- ber 31, 2018: Supplies Cash flow from investing act. Prepaid insurance Service revenue Other operating expenses Supplies expense Insurance expense Beginning common stock Cash flow from operating act. Common stock issued 1,000 Beginning retained earnings (5.200) Cash flow from financing act 1,200 Rent expense 65,200 Dividends $9,300 (5,000) 2,500 3,000 48,000 14,200 4,800 6,400 24,000 41,000 Cash 1.100 Accounts receivable 2,100 Prepaid rent 40,000 15,600 5,000 Unearned revenue Land Accounts payable 17,000 Required Use the accounts and balances from Barker Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows). Problem 2-37 Missing information in financial statements Required
Explanation / Answer
Answers
Revenues
Service Revenue
$ 65,200.00
Total Revenues
$ 65,200.00
Expenses:
Supplies expenses
$ 1,100.00
Insurance expenses
$ 2,100.00
Rent Expense
$ 2,500.00
Other operating expenses
$ 41,000.00
Total expenses
$ 46,700.00
Net Income
$ 18,500.00
Beginning Common Stokc
$ 40,000.00
Plus: Common Stock issued
$ 5,000.00
Ending Common Stock
$ 45,000.00
Beginning Retained Earnings
$ 9,300.00
Plus: Net Income
$ 18,500.00
Less: Dividends
$ 3,000.00
Ending Retained Earnings
$ 24,800.00
Total Stockholder's Equity
$ 69,800.00
ASSETS
Cash
$ 48,000.00
Accounts receivables
$ 14,200.00
Supplies
$ 1,000.00
Prepaid Insurance
$ 1,200.00
Prepaid Rent
$ 4,800.00
Land
$ 24,000.00
Total Assets
$ 93,200.00
LIABILITIES
Unearned Revenue
$ 6,400.00
Accounts Payable
$ 17,000.00
Total Liabilities
$ 23,400.00
STOCKHOLDERS' EQUITY
Common Stock
$ 45,000.00
Retained Earnings
$ 24,800.00
Total Stockholder's Equity
$ 69,800.00
Total LIABILITIES & STOCKHOLDERS' EQUITY
$ 93,200.00
Cash flow from Operating Activities
$ 15,600.00
Cash Flows from Investing Activities
$ (5,200.00)
Cash Flows from Financing Activities
$ (5,000.00)
Net Change in Cash
$ 5,400.00
Plus: Beginning Cash balance
$ 42,600.00
Ending Cash balance
$ 48,000.00
Revenues
Service Revenue
$ 65,200.00
Total Revenues
$ 65,200.00
Expenses:
Supplies expenses
$ 1,100.00
Insurance expenses
$ 2,100.00
Rent Expense
$ 2,500.00
Other operating expenses
$ 41,000.00
Total expenses
$ 46,700.00
Net Income
$ 18,500.00
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