2 (This problem is adapted from Problem 4B-2.part2. in your text.) 4 5 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cactus Company's annual accounting year ends on June 30. It is June 30, 2017, and all of the 2017 entries except year-end adjusting journal entries, and the entry to record dividends, have been made. Cactus Company is a service company and has two sources of revenue: Service and Maintenance. Because there are no sales of inventory, the income statement does not contain a line for Gross profit. but does contain a line for Total revenues (the sum of Service revenue and Maintenance revenue). Each of the remaining sheets in this file contains 1) a descnption of a transaction and 2) a partially completed balance sheet, income statement, and statement of retained earnings. Transactions A through Hrequire adjusting entries on June 30, 2017, transaction I requires an entry to record dividends declared and paid. For each transaction, show how recording the necessary entry would change the financial statements. Each transaction is independent, so you can work through the file in any order you like. Al changes are entered in the blue cells on the statements. Each statement has two columns. Values in the first column are selected from a drop-down menu. For a given transaction, there may be several (or even mary) blue cells that do not need to be changed. 28 29 30 31 32 33 34 35 20 37 30 39 40 4 42 Transc Instructions Trans Transb Trans Trans Transa Trans Tai Transd READY e 03 D EFG Statement of Financial Position ASSETS Current assets: Income Statement Total revenues Operating expenses: Total current assets Transaction Cash of $4,200 was collected on May 1, 2017, for services to be rendered evenly over the next year, beginning on May 1. Unearned Service Revenue was credited when the cash was received. Some of it has now been earned but not yet recorded. Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current Isabilities: Total operating expenses Earnings from operations 0 1 2 3 14 Earnings before income taxes Net income Total current liabilities 15 76 17 18 Total abilities Shareholders' Equity Statement of Retained Earnings Beginning balance 20 21 22 Total shareholders' equity Total abilities and shareholders' equity Ending balance 24 25 26 27 28 29 30 31 32 33 34 35 16 37 38 9 40 41 Trans Instructions That Trans Trani Trans Transa Trac SLADY OE $ DEFG JK Income Statement Statement of Financial Position ASSETS Current assets: Total revenues Operating expenses: Transaction: Cactus borrowed $24,000 on February 1, 2017 The annual interest rate is 6% The interest and loan must be repaid in full on January 31, 2018. Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities -6 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance 20 21 2 Total shareholders' equity Total liabilities and shareholders' equity Ending balance 27 29 G 38 39 40 41 T Trans Instructions Trans Trans Transb Trad READY OE DEFG H JK Statement of Financial Position Income Statement ASSETS Current assets 5 Total revenues Operating expenses 7 Transaction. The income before tax AFTER all the adjustments was $30,000. The company's lederal income tax rate is 30 percent. No entry has been made yet for income tax expense Total current assets 0 10 11 12 12 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taves Net income 15 Total current liabilities 10 Total Isabilities Shareholders' Equity 10 Statement of Retained Earnings Beginning balance 20 21 Total shareholders' equity Total liabilities and thereholders equity Ending balance 2 25 26 20 28 30 11 32 33 27 Team Tran Tran Trans Tran ruchons Trans READI e Q DEFG Statement of Financial Position ASSETS Current assetst Income Statement Transaction Cactus declared and paid dividends of $2.000 Total revenues Operating expenses Total current assets 10 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations 12 Earnings before income taxes 14 Net income Total current liabilities 13 16 17 18 19 20 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 79 00 instructie Tri Trand |||||| Trad READY a