Cleaners Inc operates a small dry-cleaning business. The company has always main
ID: 2562811 • Letter: C
Question
Cleaners Inc operates a small dry-cleaning business. The company has always main- set of records. Unfortunately, the company's accountant left in a ents with him. The following Los Problem 1-7 Corrected Financial Statements tained a complete and accurate dispute with the president and took the 2017 financial statements w income statement and balance sheet were prepared by the company's president: Hometown Cleaners Inc. Income Statement For the Year Ended December 31, 2017 Accounts receivable Cleaning revenue-cash sales $15,200 32.500 $47,700 Dividends Accounts payable Utilities Salaries and wages 4,000 4,500 12.200 17,100 37.800 S 9,900 Net income Hometown Cleaners Inc. Balance Sheet December 31, 2017 Assets Cash Building and equipment Notes payable Land Liabilities and Stockholders' Equity Cleaning revenue- S 7,400 credit sales Capital stock Net income Retained earnings $26,200 20,000 9,900 21.300 (50,000) 40,000 Total assets $ 77,400 Total liabilities and stockholders' equity $77,400Explanation / Answer
Income Statement Revenue Credit sale 26,200 Cash sale 32,500 Total Revenue 58,700 Less Utilities (12,200) Salaries and wages (17,100) Net profit 29,400 Statement of retained earnings Balance as on 1-Jan-2017 42,700 Profit for the year 29,400 Less Dividend (4,000) Balance as on 31-Dec-2017 68,100 Corrected Balance sheet Liaiblities Amount Assets Amount Notes payable 50,000 Cash 7,400 Accounts payable 4,500 Building 80,000 Capital Stock 20,000 Land 40,000 Retained earnings 68,100 Accounts receivable 15,200 Total 142,600 Total 142,600 Reconciliation between 2 income statements Profits as per President 9,900 Add credit sale 26,200 Less AR (15,200) Add Accounts payable 4,500 Add dividend payment 4,000 Profit as per correct income statement 29,400
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.