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Problem 4-3A The completed financial statement columns of the worksheet for Hubb

ID: 2489973 • Letter: P

Question

Problem 4-3A The completed financial statement columns of the worksheet for Hubbs Company are shown below Hubbs Company Worksheet For the Year Ended December 31, 2014 Income Statement Balance Sheet ount Account Titles Cr Dr Cr No. 101 112 130 157 167 201 212 311 320 332 400 622 Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation-Equip Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Maintenance and Repairs Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Utilities Expense 6,829 7,478 1,883 33,218 9,989 11,495 3,053 20,040 10,500 2,046 43,170 3,729 722 726 732 2,804 1,297 35,180 3,783 Totals 46,793 43,170 51,454 55,077 Net Loss 3,623 3,623 46,793 46,793 55,077 55,077 Prepare an income statement. (If the amount for net income is negative, enter amount with either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

Explanation / Answer

1

HUBBS COMPANY

Income statement

For the year ended December 31, 2014

Service revenue

$ 43,170.00

Expenses:

Maintenance and repairs expenses

$    3,729.00

Depreciation expenses

$    2,804.00

Insurance expesne

$    1,297.00

Salaries and wages expenses

$ 35,180.00

Utilities expenses

$    3,783.00

Total Expenses

$ 46,793.00

Net income / (Loss)

$ (3,623.00)

2

HUBBS COMPANY

Retained Earnings statement

For the year ended December 31, 2014

Retained earnings Beginning balance

$ 10,500.00

Less:

Net loss

$ (3,623.00)

Dividends

$ (2,046.00)

$ (5,669.00)

Retained earnings Ending balance

$    4,831.00

3

HUBBS COMPANY

Balance Sheet

December. 31, 2014

Assets :

Current Assets

Cash

$    6,829.00

Accounts Receivables

$    7,478.00

Prepaid Insurance

$    1,883.00

Total Current Assets

$ 16,190.00

Property, plant and equipment

Equipment

$ 33,218.00

Less: Accumulated depreciation - Equip.

$ (9,989.00)

$ 23,229.00

Total Assets

$ 39,419.00

Liabilities and Stock Holder's Equity :

Current Liabilities

Accounts Payable

$ 11,495.00

Salaries and wages payable

$    3,053.00

Total Current Liabilities

$ 14,548.00

Stock Holder's Equity

Common Stock

$ 20,040.00

Retained earnings

$    4,831.00

Total Stock Holder's Equity

$ 24,871.00

Total Liabilities and Stock Holder's Equity

$ 39,419.00

4

Closing Entries:

Date

Account Titles and Explanations

Debit

Credit

Dec. 31

Service revenue

$ 43,170.00

Income Summary

$ 43,170.00

(To close Revenue account )

Dec. 31

Income Summary

$ 46,793.00

Maintenance and repairs expenses

$    3,729.00

Depreciation expenses

$    2,804.00

Insurance expense

$    1,297.00

Salaries and wages expenses

$ 35,180.00

Utilities expenses

$    3,783.00

(To close Expense accounts )

Dec. 31

Retained earnings

$    3,623.00

Income Summary

$    3,623.00

(To close net income / (loss)

Dec. 31

Retained earnings

$    2,046.00

Dividends

$    2,046.00

(To close dividends)

1

HUBBS COMPANY

Income statement

For the year ended December 31, 2014

Service revenue

$ 43,170.00

Expenses:

Maintenance and repairs expenses

$    3,729.00

Depreciation expenses

$    2,804.00

Insurance expesne

$    1,297.00

Salaries and wages expenses

$ 35,180.00

Utilities expenses

$    3,783.00

Total Expenses

$ 46,793.00

Net income / (Loss)

$ (3,623.00)

2

HUBBS COMPANY

Retained Earnings statement

For the year ended December 31, 2014

Retained earnings Beginning balance

$ 10,500.00

Less:

Net loss

$ (3,623.00)

Dividends

$ (2,046.00)

$ (5,669.00)

Retained earnings Ending balance

$    4,831.00

3

HUBBS COMPANY

Balance Sheet

December. 31, 2014

Assets :

Current Assets

Cash

$    6,829.00

Accounts Receivables

$    7,478.00

Prepaid Insurance

$    1,883.00

Total Current Assets

$ 16,190.00

Property, plant and equipment

Equipment

$ 33,218.00

Less: Accumulated depreciation - Equip.

$ (9,989.00)

$ 23,229.00

Total Assets

$ 39,419.00

Liabilities and Stock Holder's Equity :

Current Liabilities

Accounts Payable

$ 11,495.00

Salaries and wages payable

$    3,053.00

Total Current Liabilities

$ 14,548.00

Stock Holder's Equity

Common Stock

$ 20,040.00

Retained earnings

$    4,831.00

Total Stock Holder's Equity

$ 24,871.00

Total Liabilities and Stock Holder's Equity

$ 39,419.00

4

Closing Entries:

Date

Account Titles and Explanations

Debit

Credit

Dec. 31

Service revenue

$ 43,170.00

Income Summary

$ 43,170.00

(To close Revenue account )

Dec. 31

Income Summary

$ 46,793.00

Maintenance and repairs expenses

$    3,729.00

Depreciation expenses

$    2,804.00

Insurance expense

$    1,297.00

Salaries and wages expenses

$ 35,180.00

Utilities expenses

$    3,783.00

(To close Expense accounts )

Dec. 31

Retained earnings

$    3,623.00

Income Summary

$    3,623.00

(To close net income / (loss)

Dec. 31

Retained earnings

$    2,046.00

Dividends

$    2,046.00

(To close dividends)

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