ACCT 2113 Study Guide - Midterm Guide: Retained Earnings, Common Stock, Financial Accounting

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mauvehare735

3 May 2016

School

University of Oklahoma

Department

Accounting

Course

ACCT 2113

Professor

Wayne Thomas

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Document Summary

Cash+ prepaid rent+ equipment= notes payable+ common stock. Balance sheet accrual based accounting records revenue when it is earned and expenses are recorded when they are incurred cash based accounting records revenue when cash is received and expenses when they are paid. Balance sheet reports assets, liabilities, and stockholders" equity. Financial accounting is best described as a system of measuring business activity and communicating those measurements to people making decisions. Retained earnings is revenues less expenses and dividends over the life of the company. Temporary balance is utilities expense, service revenue a credit ? (1) it is part of the double-entry procedure that balances the accounting equation. (2) it represents a decrease to assets. (3) it represents an increase to liabilities. Total stockholder"s equity is common stock plus retained earnings plus net income minus dividends. Common stock is the amount of cash invested by stockholders in the company. Accounts reported in balance sheet have permanent balances.

Related Questions

On December 31, 2016, the accounts inthe ledger of Monroe Entertainment Co. are listed below. Allaccounts have normal balances. At the beginning of the year,retained earning balance is $4,000.

Note Payable due 10/31/2018	$ 10,000
Accounts Receivable	6,000
Accumulated Depreciation- Equipment (Creditbalance)	6,000
Dividends	1,000
Cash	16,000
Depreciation Expense	5,000
Equipment	12,000
Fees Earned	50,000
Rent Expense	6,000
Supplies	2,000
Supplies Expense	3,000
Wages Expense	21,000
Wages Payable	2,000

Q1. Generate the Income statement

Monroe Entertainment Company Income Statement
For the Year Ended December 31, 2016

Revenues:
		S
Total Revenue
Expenses:



Total Expenses:
Net Income		$

Please generate Retained Earnings Statement based uponthe above information and net income youcalculated.

Monroe Entertainment Company

Retained Earnings Statement

For the Year Ended Dec 31, 2016

Retained Earnings at beginning of the year	$___________________
Net Income	_____________________
Less: Dividends	_____________________
Net Increase/(Decrease) in the end	______________________
Retained Earnings at end of the year	$_____________________

Please generate Balance Sheet as of December 31, 2016.

Monroe Entertainment Company Balance Sheet
Dec 31, 2016

Assets		Liabilities
	$		$









Total Assets	$	Total Liabilities and Shareholdersâ Equity	$

blushwasp424

Problem 1-33Interrelationships among financial statements Crawford Enterprises started the 2014 accounting period with $75,000 of assets (all cash), $15,000 of liabilities, and $25,000 of common stock. During the year, Crawford earned cash revenues of $46,000, paid cash expenses of $26,000, and paid a cash dividend to stockholders of $5,000. Crawford also acquired $15,000 of additional cash from the sale of common stock and paid $10,000 cash to reduce the liability owed to a bank. Required a.Prepare an income statement, statement of changes in stockholdersâ equity, period-end balance sheet, and statement of cash flows for the 2014 accounting period. (Hint: Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements.) b.Determine the percentage of total assets that were provided by creditors, investors, and earnings. c.Determine the balance in the Revenue, Expense, and Dividends accounts as of January 1, 2015. LO 1-2, 1-3, 1-4, 1-5, 1-6, 1-7 CHECK FIGURES a. Net Income: $19,000 e. Net Cash Flow from Operating Activities: $19,000

lavenderwombat729

In addition to presenting the computed answers, please also discuss how you arrived at each answers the accounting problem asks. The accounting problem presents a companyâs balance sheet and income statement. The Diamond Gem Cleaning and Maintenance Service Company is in the business of contracting its cleaning and maintenance services to office buildings. The balance sheet and income statement have blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. In doing so, explain the account being valued and its relationship to the other financial data. For example, if the accounts payable line was missing, explain that you can derive its value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet

Please refer to the income statement and balance sheet of the Diamond Gem Cleaning and Maintenance Service Company available down:

Superior papers will mention and explain the following elements when responding to the assignment question:

Provide correct balances for the blank financial account lines.

Provide a narrative about how the values were determined.

Provide a definition and explanation of each account line that was completed

Balance sheet
ASSETS

CURRENT ASSETS

Cash		225,971
Contracts receivables		[__A____]
Other assets		162,847

Total current assets		893,868

LONG TERM ASSETS

Equipment		[___B____]

TOTAL ASSETS		1,180,660

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable		[__C____]
Line of credit		85,000
Accrued expenses		72,495
Income tax payable		46,660
Current portion of notes payable		31,747
Deferred income taxes		78,460

Total current liabilities		571,697

LONG TERM LIABILITIES
Notes payable (long term)		172,467

TOTAL LIABILITIES		744,164

STOCKHOLDERS' EQUITY

Common stock	62,000
Additional paid-in capital	63,862

Retained Earnings	[___D___]

Total stockholders' equity		436,496

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY		[___E___]

Income sheet

Contract Revenues	5,146,862

Contract Costs	[___F____]

Gross Profit	614,343

General and Administrative Expenses	322,356

Operating Income	291,987

Other Expense	25,770

Income Before Provision for Income Taxes	266,217

Provision for Income Taxes	[__G____]

Net Income	150,767


Retained Earnings, Beginning Balance	[__H____]

Net Income	150,767

Retained Earnings, Ending Balance	310,634

cyanmosquito456

ACCT 2113 Study Guide - Midterm Guide: Retained Earnings, Common Stock, Financial Accounting

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