Upton Company was started on January 1, 2011, when the owners invested $160,000
ID: 2447269 • Letter: U
Question
Upton Company was started on January 1, 2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of $120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000.
9.
value:
2.00 points
Required information
Required:
Prepare a 2011 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows using each of the following assumptions. (Consider each assumption separately.)
Upton is a sole proprietorship owned by J. Upton. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
$
$
$
$
$
$
References
eBook & Resources
WorksheetLearning Objective: 08-1
Difficulty: MediumLearning Objective: 08-2
Check my work
10.
value:
2.00 points
Required information
Upton is a partnership with two partners, Dan and Nancy Upton. Dan invested $100,000 and Nancy invested $60,000 of the $160,000 cash that was used to start the business. Nancy was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Nancy to receive 60 percent of the profits and Dan the remaining 40 percent. With regard to the $15,000 distribution, Nancy withdrew $6,000 from the business and Dan withdrew $9,000. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
$
$
$
$0
$
$
References
eBook & Resources
WorksheetLearning Objective: 08-1
Difficulty: MediumLearning Objective: 08-2
Check my work
11.
value:
2.00 points
Required information
Upton is a corporation. The owners were issued 10,000 shares of $10 par common stock when they invested the $160,000 cash in the business. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
$
$
$
$
$
$
Upton Company was started on January 1, 2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of $120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000.
Explanation / Answer
A. sole proprietorship
revenues =$120,000
Less: expenses =$82000
Net income =$38000
Capital statement
capital 1.1.2011 =$160000
Net profit during the year =$38000
=$198,000
Less:drawings =$15000
capital balance on 31.12.2011=$183000
Balance sheet
liabilities
upton capital =183,000
b. Dan capital Nancy capital
capital $100000 $60000
income of 38000 shared
in the ratio of 6:4 $22800 $15200
total $122800 $75200
Less:Drawings $9000 $6000
Net capital as the end of year $123800 $69200
Balance sheet
Liabilities
Dan capital $123800
Nancy capital. $69200
c.Upton is a corporation
the net profit is transferred to retained earnings
Balance sheet
Liabilities
shareholders fund
common stock $160000
retained earnings $38000
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