1.6 Accounting Equation and Financial Statements

Background Information:The New Life Dance Company experienced the following events during 2019:

A B C D E F G H 1.6 Accounting Equation and Financial Statements K L 38 pts. M N 0 P A Background Information: The New Life Dance Company experienced the following events during 2019: 5 1 Acquired $40,000 cash from the issue of common stock 2 Paid $15,000 cash to purchase land 3 Borrowed $8,090 in cash 4 Paid $1,500 cash for utilities expense 5 Provided ballet services for $25,000 cash 9 6 Paid $17,000 cash for other operating expenses 10 7 paid $3,200 cash dividend to the stockholders 1 1 B Determined that the market value of the land purchase is now only $15,000 12 15 Note: There are drop downs for the Income Statement and Balance Sheet for the labels. 14 15 a) Complete the accounting equation for the different transactions. The starting balances from January 1 have been included, Once you have completed this, 16 you will have the needed information to complete the Income Statement and Balance Sheet Below. 17 18 19 The New Life Dance Company 20 Accounting Equation 21 Event Assets Llabilities stockholders Equity 22 Cash + land Notes Payable + Common Stock + Retained Earnings 23 Balance 3,000 S 15,000 S 9,000 S 9 000 24 25 26 27 4 28 29 30 7 31 32 Total $ 3,000 + $ 15,000 = 5 9,000 + 9,000 33 CELLS C32, E32, G32, 132, AND K32 ARE FORMULAS, PLEASE DO NOT CHANGE 34 Problem 1.1 Problem 1.2 Problem 1.3 | Problem 14 |Problem .5 Problem 1.6 2:39 PM 4/21/3020 Type here to search O x WFormatting . Table - Sideof Clipboard Fant Format - Filler Select- Alignrent Number Strips P27 Cells Editing A B C E F G H 34 J K M N 0 R S 35 b] Prepare an income statement for 2019 36 37 New Life Dance Company Income Statement 39 For the Year Ended December 31,2019 40 Income statement equation: 41 Revenue minus expenses = profit (loss) 42 43 44 Net Income 45 CELL E45 IS A FORMULA, PLEASE DO NOT CHANGE 46 47 C) Prepare a year-end balance Sheet 48 New Life Dance Company 49 Balance Sheet 50 As of December 31,2019 51 Accounting Equation 52 Assets Assets = Liabilities + Stockholders Equity 53 54 55 Total Assets S 56 Liabilities CELLS G58 & G6Z ARE FORMULAS, PLEASE DO NOT CHANGE 57 58 Total Liabilities 59 Stockholders Equity 60 61 62 Total Stockholders Equity 63 Total Liabilities and Stockholders Equity 64 65 66