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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