Course: Financial Accounting

Flow of Accounts into Financial Statements The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of stockholders' equity, or balance sheet. 1. Accounts Payable balance sheet 2. Accounts Receivable balance sheet 3. Cash balance sheet 4. Dividends statement of stockholders' equity 5. Fees Earned income statement 6. Supplies balance sheet 7. Unearned Rent balance sheet 8. Utilities Expense income statement 9. Wages Expense income statement 10. Wages Payable balance sheet Classifying Accounts Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an asset, liability, revenue, or expense. 1. Accounts Receivable Asset 2. Equipment Asset 3. Fees Earned Revenue 4. Insurance Expense Expense 5. Prepaid Advertising Asset 6. Prepaid Rent Asset 7. Rent Revenue Revenue 8. Salary Expense Expense 9. Salary Payable Liability 10. Supplies Asset 11. Supplies Expense Expense 12. Unearned Rent Liability Financial Statements from the End-of-Period Spreadsheet Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 2019: Demo Consulting End-of-Period Spreadsheet For the Year Ended August 31, 2019 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,630 10,630 Accounts Receivable 25,300 25,300 2,680 2,250 430 Supplies Land 21,760 21,760 Office Equipment 20,490 20,490 Accumulated Depreciation 2,810 1,340 4,150 Accounts Payable 6,830 6,830 Salaries Payable 330 330 Common Stock 8,500 8,500 Retained Earnings 17,310 17,310 Dividends 3,290 3,290 Fees Earned 69,950 69,950 Salary Expense 19,230 330 19,560 2,250 2,250 Supplies Expense Depreciation Expense Miscellaneous Expense 1,340 1,340 2,020 2,020 105,400 105,400 3,920 3,920 107,070 107,070 Based on the preceding spreadsheet, prepare an income statement for Demo Consulting. Based on the preceding spreadsheet, prepare an income statement for Demo Consulting. Demo Consulting Income Statement For the Year Ended August 31, 2019 Fees earned 69,950 Expenses: Salary expense 19,560 Supplies expense 2.250 Depreciation expense 1,340 Miscellaneous expense 2,020 Total expenses -25,170 Net income 44,780 Feedback Based on the preceding spreadsheet, prepare a statement of stockholders' equity for Demo Consulting. During the year ended August 31, 2049, $3,400 of additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Demo Consulting Statement of Stockholders' Equity For the Year Ended August 31, 2019 Common Stock Retained Earnings Total Balances, September 1, 2018 5,100 17,310 Issued common stock 3,400 3,400 22,410 0 Net income 0 44,780 44,780 Dividends 0 -3,290 -3,290 Balances, August 31, 2019 8,500 58,800 67,300 Based on the preceding spreadsheet, prepare a balance sheet for Demo Consulting. Demo Consulting Balance Sheet August 31, 2049 Assets Current assets: Cash 10,630 25,300 Accounts receivable Supplies 430 36,360 Total current assets Property, plant, and equipment: Land 21,760 Office equipment 20,490 Accumulated depreciation -4,150 Book value-office equipment 16,340 Total property, plant, and equipment 38,100 Total assets 74,460 Liabilities Current liabilities: Accounts payable 6,830 Salaries payable 330 Total liabilities 7,160 Stockholders' Equity Common stock 8,500 Retained earnings 58,800 Total stockholders' equity 67,300 Total liabilities and stockholders' equity 74,460 Financial Statements from the End-of-Period Spreadsheet Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 20Y3: Triton Consulting End-of-Period Spreadsheet For the Year Ended April 30, 20Y3 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 16,770 16,770 Accounts Receivable 39,940 39,940 Supplies 4,230 3,550 680 31,950 31,950 Office Equipment Accumulated Depreciation 4,430 2,120 6,550 10,780 10,780 Accounts Payable Salaries Payable 520 520 Common Stock 13,000 13,000 27,740 Retained Earnings 27,740 Dividends 5,190 5,190 Fees Earned 74,490 74,490 Salary Expense 29,160 520 29,680 3,550 3,550 Supplies Expense Depreciation Expense 2,120 2,120 Miscellaneous Expense 3,200 3,200 130,440 130,440 6,190 6,190 133,080 133,080 Based on the preceding spreadsheet, prepare an income statement for Triton Consulting. Triton Consulting Income Statement For the Year Ended April 30, 20Y3 Fees earned 74,490 Expenses: Salary expense 29,680 Supplies expense 3,550 Depreciation expense 2,120 Miscellaneous expense 3,200 Total expenses 38,550 Net income 35,940 Feedback Based on the preceding spreadsheet, prepare a statement of stockholders' equity for Triton Consulting. During the year ended April 30, 20Y3, common stock of $4,000 was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Triton Consulting Statement of Stockholders' Equity For the Year Ended April 30, 20Y3 Common Stock Retained Earnings Total Balances, May 1, 20Y2 9,000 $ 27,740 36,740 Issued common stock 4,000 o 4,000 Net income 0 35,940 35,940 Dividends 0 -5,190 -5,190 Balances, April 30, 2013 13,000 58,490 $ 71,490 Based on the preceding spreadsheet, prepare a balance sheet for Triton Consulting. Triton Consulting Balance Sheet April 30, 20Y3 Assets Current assets: Cash 16,770 Accounts receivable 39,940 Supplies 680 57,390 Total current assets Property, plant, and equipment: Office equipment 31,950 Accumulated depreciation 6,550 25,400 Total property, plant, and equipment Total assets 82,790 Liabilities Current liabilities: Accounts payable 10,780 Salaries payable 520 Total liabilities 11,300 Stockholders' Equity 13,000 Common stock Retained earnings 58,490 Total stockholders' equity 71,490 Total liabilities and stockholders' equity 82,790 Income Statement The following account balances were taken from the adjusted trial balance for Urgent Messenger Service, a delivery service firm, for the fiscal year ended November 30, 20Y1: Depreciation Expense $9,500 Fees Earned 504,500 Insurance Expense 1,810 Miscellaneous Expense 3,800 Rent Expense 72,200 Salaries Expense 253,700 3,230 Supplies Expense Utilities Expense 27,600 Prepare an income statement for Urgent Messenger Service. Urgent Messenger Service Income Statement For the Year Ended November 30, 2011 Fees earned Expenses: Salaries expense Rent expense Utilities expense Depreciation expense Qol.100 Supplies expense Insurance expense Miscellaneous expense Total expenses Net income Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 2017, the end of the fiscal year: Depreciation Expense $15,100 Insurance Expense 7,400 Miscellaneous Expense 5,890 Rent Expense 61,000 Service Revenue 289,900 Supplies Expense 3,620 Utilities Expense 23,250 Wages Expense 228,000 Prepare an income statement. Acorn Health Services Co. Income Statement For the Year Ended January 31, 2017 Service revenue Expenses: Wages expense Rent expense Utilities expense Depreciation expense Qoc0101 Insurance expense Supplies expense Miscellaneous expense Total expenses Net loss