Dewy, Cheatum, & Howe (DC&H) is a CPA firm that had the following business trans
ID: 2475086 • Letter: D
Question
Dewy, Cheatum, & Howe (DC&H) is a CPA firm that had the following business transactions for the year of 2014. Using the provided spreadsheet and Financial Statements, please post the business transactions and then create the four (4) required financial statements for year ending 2014 1.) DC&H sold $20,000 in stock to expand their West Coast operations 2.) DC&H paid the wages payable obligaiton 3.) DC&H billed $110,000 in sales revenue, all of the billings were due 30 days from receipt of invoice 4.) DC&H paid $3,500 on the tax obligation 5.) DC&H sold $5,000 in marketable securities 6.) DC&H paid $60,000 for salaries 7.) DC&H paid $16,000 towards the Note Payable 8.) DC&H collected $105,000 on accounts receivable 9.) DC&H paid $10,000 for advertising 10.) DC&H paid $12,000 in utilities 11.) Depreciation on the Building/Equip is $5,000 12.) DC&H paid $6,000 in dividends Dewy, Cheatum, & Howe CPA's Beginning Balance 1/1/13 1 2 3 4 5 6 7 8 9 10 11 12 Totals Assets Cash $ 15,000 $ 15,000 Marketable securities 10,000 $ 10,000 Accounts receivable 7,500 $ 7,500 Building & Equip (net) 90,000 $ 90,000 Land 40,000 $ 40,000 Total Assets $ 162,500 $ 162,500 Liabilities Accounts Payable $ 6,500 $ 6,500 Wages payable 2,000 $ 2,000 Taxes payable 6,500 $ 6,500 Notes payable 56,000 $ 56,000 Total liabilities $ 71,000 $ 71,000 Shareholders equity Common stock $ 30,000 $ 30,000 Retained earnings 61,500 $ 61,500 Sales Revenue $ - Salary Expense $ - Advertising Expense $ - Depreciaiton Expense $ - Utilities Expense $ - Dividends $ - Total Shareholders Equity $ 91,500 $ 91,500 Dewy, Cheatum, & Howe CPA's Balance Sheet at 31-Dec-13 31-Dec-14 Dewy, Cheatum, & Howe CPA's Current assets Income Statement for Year Ending Cash $15,000 31-Dec-14 Marketable securities 10,000 Sales revenue Accounts receivable 7,500 Expenses: Total current assets 32,500 Salary Advertising Building and equipment , cost 125,000 Utilities Accumulated depreciation -35,000 Depreciation Land 40,000 Total expenses Total assets $162,500 Net income Current liabilities Accounts payable $6,500 Dewy, Cheatum, & Howe CPA's Wages payable 2,000 Statement of Retained Earnings Taxes payable 6,500 31-Dec-14 Total current liabilities 15,000 Retained Earnings Beg Bal Notes payable $56,000 Net Income/(loss) Shareholders’ equity Dividends Common stock 30,000 Retained Earnings End Bal Retained earnings 61,500 Treasury stock Total liabilities and shareholders’ equity $162,500 Dewy, Cheatum, & Howe CPA's Statement of Cash Flow for Year Ended 31-Dec-14 Cash flow from operating activities NET INCOME / (LOSS) Depreciation Accounts Receivable Accounts payable Wages payable Taxes payable Net cash provided by operations Cash flow from investing activities (Purchases) sale of buliding and equipment (Purchase) sale of marketable securities (Purchase) sale of land Net cash provided by investing activities Cash flow from financing activities Issuance (repayment) of long-term debt Payment of dividend Issuance (repurchase) of common stock Net cash provided by financing activities Net cash flow Beginging Cash Balance Ending Cash Balance Dewy, Cheatum, & Howe (DC&H) is a CPA firm that had the following business transactions for the year of 2014. Using the provided spreadsheet and Financial Statements, please post the business transactions and then create the four (4) required financial statements for year ending 2014 1.) DC&H sold $20,000 in stock to expand their West Coast operations 2.) DC&H paid the wages payable obligaiton 3.) DC&H billed $110,000 in sales revenue, all of the billings were due 30 days from receipt of invoice 4.) DC&H paid $3,500 on the tax obligation 5.) DC&H sold $5,000 in marketable securities 6.) DC&H paid $60,000 for salaries 7.) DC&H paid $16,000 towards the Note Payable 8.) DC&H collected $105,000 on accounts receivable 9.) DC&H paid $10,000 for advertising 10.) DC&H paid $12,000 in utilities 11.) Depreciation on the Building/Equip is $5,000 12.) DC&H paid $6,000 in dividends Dewy, Cheatum, & Howe CPA's Beginning Balance 1/1/13 1 2 3 4 5 6 7 8 9 10 11 12 Totals Assets Cash $ 15,000 $ 15,000 Marketable securities 10,000 $ 10,000 Accounts receivable 7,500 $ 7,500 Building & Equip (net) 90,000 $ 90,000 Land 40,000 $ 40,000 Total Assets $ 162,500 $ 162,500 Liabilities Accounts Payable $ 6,500 $ 6,500 Wages payable 2,000 $ 2,000 Taxes payable 6,500 $ 6,500 Notes payable 56,000 $ 56,000 Total liabilities $ 71,000 $ 71,000 Shareholders equity Common stock $ 30,000 $ 30,000 Retained earnings 61,500 $ 61,500 Sales Revenue $ - Salary Expense $ - Advertising Expense $ - Depreciaiton Expense $ - Utilities Expense $ - Dividends $ - Total Shareholders Equity $ 91,500 $ 91,500 Dewy, Cheatum, & Howe CPA's Balance Sheet at 31-Dec-13 31-Dec-14 Dewy, Cheatum, & Howe CPA's Current assets Income Statement for Year Ending Cash $15,000 31-Dec-14 Marketable securities 10,000 Sales revenue Accounts receivable 7,500 Expenses: Total current assets 32,500 Salary Advertising Building and equipment , cost 125,000 Utilities Accumulated depreciation -35,000 Depreciation Land 40,000 Total expenses Total assets $162,500 Net income Current liabilities Accounts payable $6,500 Dewy, Cheatum, & Howe CPA's Wages payable 2,000 Statement of Retained Earnings Taxes payable 6,500 31-Dec-14 Total current liabilities 15,000 Retained Earnings Beg Bal Notes payable $56,000 Net Income/(loss) Shareholders’ equity Dividends Common stock 30,000 Retained Earnings End Bal Retained earnings 61,500 Treasury stock Total liabilities and shareholders’ equity $162,500 Dewy, Cheatum, & Howe CPA's Statement of Cash Flow for Year Ended 31-Dec-14 Cash flow from operating activities NET INCOME / (LOSS) Depreciation Accounts Receivable Accounts payable Wages payable Taxes payable Net cash provided by operations Cash flow from investing activities (Purchases) sale of buliding and equipment (Purchase) sale of marketable securities (Purchase) sale of land Net cash provided by investing activities Cash flow from financing activities Issuance (repayment) of long-term debt Payment of dividend Issuance (repurchase) of common stock Net cash provided by financing activities Net cash flow Beginging Cash Balance Ending Cash BalanceExplanation / Answer
Dewy, Cheatum, & Howe CPA's Beginning Balance 1/1/13 1 2 3 4 5 6 7 8 9 10 11 12 Totals Assets Cash 15,000 20000 -2000 -3500 5000 -60000 -16000 105000 -10000 -12000 -6000 35500 Marketable securities 10,000 -5000 5000 Accounts receivable 7,500 110000 -105000 12500 Building & Equip (net) 90,000 -5000 85000 Land 40,000 40000 Total Assets 162,500 178000 Liabilities 0 Accounts Payable 6,500 6500 Wages payable 2,000 -2000 0 Taxes payable 6,500 -3500 3000 Notes payable 56,000 -16000 40000 Total liabilities 71,000 49500 Shareholders equity 0 Common stock 30,000 20000 50000 Retained earnings 61,500 17000 78500 Sales Revenue -110000 -110000 Salary Expense 60000 60000 Advertising Expense 10000 10000 Depreciaiton Expense 5000 5000 Utilities Expense 12000 12000 Dividends 6000 6000 Total Shareholders Equity 91,500 40000 -4000 0 -7000 0 0 -32000 0 0 0 0 17000 105500 Dewy, Cheatum, & Howe CPA's Balance Sheet at 31-Dec-13 31-Dec-14 Dewy, Cheatum, & Howe CPA's Current assets Income Statement for Year Ending Cash $15,000 35500 ######## Marketable securities 10,000 5000 Sales revenue 110000 Accounts receivable 7,500 12500 Expenses: Total current assets 32,500 53000 Salary 60000 Advertising 10000 Building and equipment , cost 125,000 125,000 Utilities 5000 Accumulated depreciation -35,000 -40,000 Depreciation 12000 Land 40,000 40,000 Total expenses 87000 Total assets $162,500 178000 Net income 23000 Dividend 6000 Trns to retained 17000 Current liabilities Accounts payable $6,500 6500 Dewy, Cheatum, & Howe CPA's Wages payable 2,000 0 Statement of Retained Earnings Taxes payable 6,500 3000 ######## Total current liabilities 15,000 9500 Retained Earnings Beg Bal Notes payable $56,000 40000 Net Income/(loss) Shareholders’ equity Dividends Common stock 30,000 50000 Retained Earnings End Bal Retained earnings 61,500 78500 Treasury stock Total liabilities and shareholders’ equity $162,500 178000
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