Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me do the journal entry, T account, Balance sheet, Income Statement, Owner equity, Earning per share. 1,000 Assets Current Assets Cash Inventory

can you help me do the journal entry, T account, Balance sheet, Income Statement, Owner equity, Earning per share.
image text in transcribed
image text in transcribed
image text in transcribed
1,000 Assets Current Assets Cash Inventory Total Current Assets 35,400 36,400 CBB, Inc Balance Sheet December 31, 2020 Liabilities Current Liabilities $635,000 Wages Payable 80,000 Taxes Payable 715,000 Total Current Liabilities Long-Term Debt Note Payable-Phil 50,000 Total Liabilities 50,000 Owners' Equity Common Stock 1,000 Retained Earnings Total Owners' Equity Total Liabilities and $766,000 Owners' Equity 200,000 236,400 Fixed Assets Land Net Fixed Assets Other Assets Security Deposit 450,000 79,600 529,600 Total Assets $ 766,000 CBB, Inc. Income Statement For the Year Ended December 31, 2020 480,000 320,000 160,000 Sales Cost of Sales Gross Margin Operating Expenses Wage Expense Rent Expense Utilities Expense Total Operating Expenses Income from Operations Other Revenues & (Expenses) Interest Expense Income Before Taxes Tax Expense Net Income $ 21,000 12,000 1,000 34,000 126,000 (8,000) 118,000 35,400 82,600 Earnings Per Share $ 19.25 CBB, Inc. Statement of Owners' Equity For the Year Ended December 31, 2020 Common Retained Shares Stock Earnings Total 4,500 $ 450,000 Beginning Balance Issuance of stock Net Income Dividends Declared Ending Balance $ 82,600 (3,000) 79,600 450,000 82,600 (3,000) 529,600 4.500 $ 450,000 $ $ Beamer Biz - 2021 During the second year Chris bought 9 Beamers and sold same prices as last year. When she bought the Beamers in the second year, she paid and will pay the balance in the following year. Also, when she sold the Beamers, she got wuro uown and will receive the balance in the following year. During the year she paid cash for wages $24,000; utilities of $3,000; and rent of $8.000. On May 1, she issued 200 shares of common stock for $ 25,000. During the year, she paid 2020 taxes. At the end of the year, in addition to what she owed on the Beamers, she owed rent of $4,000 and wages of $3,000. At December 31, she paid a dividend of $5,000. At December 31 she paid the interest due to Uncle Phil and she paid $50,000 on the principal of the note. Tax rate is 30% and she will pay this year's taxes next year. Remember the matching concept is Beamer Business Year 2020 Chris opened a Beamer business on January 1, 2020. She started with $600,000; 400,000 of her own money, for which she received 4,000 shares of common stock, and $200,000 borrowed from her Uncle Phil (Note Payable). The Note Payable to Uncle Phil requires that she pay the interest at 4% annually on December 31. She paid the $8,000 interest on December 31, 2020. She is required to repay the principal at the end of year 2024. She planned to operate her business as a corporation, Chris's Beamer Biz, Inc. (CBB, Inc.). During the year she bought ten Beamers for $40,000 each. She sold eight of the Beamers for $60,000 each. Other expenses she paid cash for were: wages, $20,000; rent, $12,000; and utilities $1,000. She signed a 20-year lease and put down a rent security deposit of $1,000. In addition to the cash she invested on January 1st, on June 1st she also invested a piece of land she owned in the business that was worth $50,000 in exchange for 500 shares of common stock. At the end of the year she owed her worker wages of $1,000. She paid a dividend of $3,000. The tax rate is 30% and Chris will pay 2020 taxes in 2021. So how did Chris do? (Do everything - Journal Entries, T-Accounts, Financial Statements). 1,000 Assets Current Assets Cash Inventory Total Current Assets 35,400 36,400 CBB, Inc Balance Sheet December 31, 2020 Liabilities Current Liabilities $635,000 Wages Payable 80,000 Taxes Payable 715,000 Total Current Liabilities Long-Term Debt Note Payable-Phil 50,000 Total Liabilities 50,000 Owners' Equity Common Stock 1,000 Retained Earnings Total Owners' Equity Total Liabilities and $766,000 Owners' Equity 200,000 236,400 Fixed Assets Land Net Fixed Assets Other Assets Security Deposit 450,000 79,600 529,600 Total Assets $ 766,000 CBB, Inc. Income Statement For the Year Ended December 31, 2020 480,000 320,000 160,000 Sales Cost of Sales Gross Margin Operating Expenses Wage Expense Rent Expense Utilities Expense Total Operating Expenses Income from Operations Other Revenues & (Expenses) Interest Expense Income Before Taxes Tax Expense Net Income $ 21,000 12,000 1,000 34,000 126,000 (8,000) 118,000 35,400 82,600 Earnings Per Share $ 19.25 CBB, Inc. Statement of Owners' Equity For the Year Ended December 31, 2020 Common Retained Shares Stock Earnings Total 4,500 $ 450,000 Beginning Balance Issuance of stock Net Income Dividends Declared Ending Balance $ 82,600 (3,000) 79,600 450,000 82,600 (3,000) 529,600 4.500 $ 450,000 $ $ Beamer Biz - 2021 During the second year Chris bought 9 Beamers and sold same prices as last year. When she bought the Beamers in the second year, she paid and will pay the balance in the following year. Also, when she sold the Beamers, she got wuro uown and will receive the balance in the following year. During the year she paid cash for wages $24,000; utilities of $3,000; and rent of $8.000. On May 1, she issued 200 shares of common stock for $ 25,000. During the year, she paid 2020 taxes. At the end of the year, in addition to what she owed on the Beamers, she owed rent of $4,000 and wages of $3,000. At December 31, she paid a dividend of $5,000. At December 31 she paid the interest due to Uncle Phil and she paid $50,000 on the principal of the note. Tax rate is 30% and she will pay this year's taxes next year. Remember the matching concept is Beamer Business Year 2020 Chris opened a Beamer business on January 1, 2020. She started with $600,000; 400,000 of her own money, for which she received 4,000 shares of common stock, and $200,000 borrowed from her Uncle Phil (Note Payable). The Note Payable to Uncle Phil requires that she pay the interest at 4% annually on December 31. She paid the $8,000 interest on December 31, 2020. She is required to repay the principal at the end of year 2024. She planned to operate her business as a corporation, Chris's Beamer Biz, Inc. (CBB, Inc.). During the year she bought ten Beamers for $40,000 each. She sold eight of the Beamers for $60,000 each. Other expenses she paid cash for were: wages, $20,000; rent, $12,000; and utilities $1,000. She signed a 20-year lease and put down a rent security deposit of $1,000. In addition to the cash she invested on January 1st, on June 1st she also invested a piece of land she owned in the business that was worth $50,000 in exchange for 500 shares of common stock. At the end of the year she owed her worker wages of $1,000. She paid a dividend of $3,000. The tax rate is 30% and Chris will pay 2020 taxes in 2021. So how did Chris do? (Do everything - Journal Entries, T-Accounts, Financial Statements)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Debates On Politics And Public Administration In The Postmodern Era

Authors: Ă–mer Ugur, Kadir Caner Dogan

1st Edition

3631796331, 9783631796337

More Books

Students also viewed these Accounting questions

Question

Describe agency costs and give several examples of them.

Answered: 1 week ago

Question

=+b) What might you consider doing next?

Answered: 1 week ago

Question

I had a problem last week; they would think I am picky or a whiner!

Answered: 1 week ago