10:57 Student Read Only - You can't save changes to this file. Save a copy 14. The Morris Company uses cash-basis accounting for its records. During 2015, Mariscollected $150,000 from its customers, made payments of $70,000 to its suppliers for merchandise inventory. and paid $40,000 for operating costs. Morris wants to prepare its financial statements on an accrual basis. In gathering information for the accral-basis financial statements, Morris discovered the following: At the beginning of 2015, customers owed Morris $20,000, and Morris owed supplies $7,000. At the end of 2015, customers owed Moms $30,000, and Morris owed supplim $11,000 Two years ago, Morris purchased equipment for $10,000. The equipment has a full of five years and no salvage value. For the year 2015, Morrie's beginning inventory was $5,000, and its ending inventory was At the beginning of 2015, Morris had prepaid rent of $3,000. At the end of the year, Morris had prepaid rent of $500 Required: Using accrual accounting, prepare an income statement for 2015 for Morris Company 15. On January 1, 2016 Hammer Company listed the following shareholders' equity section of its balance sheet: Contributed Capital Common stock. $1 par $ 150,000 Additional paid-in capital on common stock 450,000 758,000 14.500 Total Contributed Capital Retained Earings Accumulated other comprehensive income Total Shareholders' Equity During 2016, the following transactions and events occurred and were recorded 1.) Hammered 50,000 shares of common stock at $3 per share 2) Hammer earned net income of $175,900 3) Hammer paid a cash dividend of $.10 per sture of common stock 4) Hammer had an unrealized loss associated with some available-for-sale securities in the amount of $1,450 Requind Prepare Hammer's statement of shareholders' equity for 2016