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Dewy, Cheatum, & Howe (DC&H) is a CPA firm that had the following business transactions for the year of 2014. Using the provided spreadsheet and
Dewy, Cheatum, & Howe (DC&H) is a CPA firm that had the following business transactions for the year of 2014. | ||||||||||||||||||
Using the provided spreadsheet and Financial Statements, please post the business transactions and then create the four (4) required financial statements for year ending 2014 | ||||||||||||||||||
1.) | DC&H sold $20,000 in stock to expand their West Coast operations | |||||||||||||||||
2.) | DC&H paid the wages payable obligaiton | |||||||||||||||||
3.) | DC&H billed $110,000 in sales revenue, all of the billings were due 30 days from receipt of invoice | |||||||||||||||||
4.) | DC&H paid $3,500 on the tax obligation | |||||||||||||||||
5.) | DC&H sold $5,000 in marketable securities | |||||||||||||||||
6.) | DC&H paid $60,000 for salaries | |||||||||||||||||
7.) | DC&H paid $16,000 towards the Note Payable | |||||||||||||||||
8.) | DC&H collected $105,000 on accounts receivable | |||||||||||||||||
9.) | DC&H paid $10,000 for advertising | |||||||||||||||||
10.) | DC&H paid $12,000 in utilities | |||||||||||||||||
11.) | Depreciation on the Building/Equip is $5,000 | |||||||||||||||||
12.) | DC&H paid $6,000 in dividends | |||||||||||||||||
Dewy, Cheatum, & Howe CPA's | ||||||||||||||||||
Beginning Balance 1/1/13 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Totals | |||||
Assets | ||||||||||||||||||
Cash | $ 15,000 | $ 15,000 | ||||||||||||||||
Marketable securities | 10,000 | $ 10,000 | ||||||||||||||||
Accounts receivable | 7,500 | $ 7,500 | ||||||||||||||||
Building & Equip (net) | 90,000 | $ 90,000 | ||||||||||||||||
Land | 40,000 | $ 40,000 | ||||||||||||||||
Total Assets | $ 162,500 | $ 162,500 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Accounts Payable | $ 6,500 | $ 6,500 | ||||||||||||||||
Wages payable | 2,000 | $ 2,000 | ||||||||||||||||
Taxes payable | 6,500 | $ 6,500 | ||||||||||||||||
Notes payable | 56,000 | $ 56,000 | ||||||||||||||||
Total liabilities | $ 71,000 | $ 71,000 | ||||||||||||||||
Shareholders equity | ||||||||||||||||||
Common stock | $ 30,000 | $ 30,000 | ||||||||||||||||
Retained earnings | 61,500 | $ 61,500 | ||||||||||||||||
Sales Revenue | $ - | |||||||||||||||||
Salary Expense | $ - | |||||||||||||||||
Advertising Expense | $ - | |||||||||||||||||
Depreciaiton Expense | $ - | |||||||||||||||||
Utilities Expense | $ - | |||||||||||||||||
Dividends | $ - | |||||||||||||||||
Total Shareholders Equity | $ 91,500 | $ 91,500 | ||||||||||||||||
Dewy, Cheatum, & Howe CPA's | ||||||||||||||||||
Balance Sheet at | 31-Dec-13 | 31-Dec-14 | Dewy, Cheatum, & Howe CPA's | |||||||||||||||
Current assets | Income Statement for Year Ending | |||||||||||||||||
Cash | $15,000 | 31-Dec-14 | ||||||||||||||||
Marketable securities | 10,000 | Sales revenue | ||||||||||||||||
Accounts receivable | 7,500 | Expenses: | ||||||||||||||||
Total current assets | 32,500 | Salary | ||||||||||||||||
Advertising | ||||||||||||||||||
Building and equipment , cost | 125,000 | Utilities | ||||||||||||||||
Accumulated depreciation | -35,000 | Depreciation | ||||||||||||||||
Land | 40,000 | Total expenses | ||||||||||||||||
Total assets | $162,500 | Net income | ||||||||||||||||
Current liabilities | ||||||||||||||||||
Accounts payable | $6,500 | Dewy, Cheatum, & Howe CPA's | ||||||||||||||||
Wages payable | 2,000 | Statement of Retained Earnings | ||||||||||||||||
Taxes payable | 6,500 | 31-Dec-14 | ||||||||||||||||
Total current liabilities | 15,000 | Retained Earnings Beg Bal | ||||||||||||||||
Notes payable | $56,000 | Net Income/(loss) | ||||||||||||||||
Shareholders equity | Dividends | |||||||||||||||||
Common stock | 30,000 | Retained Earnings End Bal | ||||||||||||||||
Retained earnings | 61,500 | |||||||||||||||||
Treasury stock | ||||||||||||||||||
Total liabilities and shareholders equity | $162,500 | |||||||||||||||||
Dewy, Cheatum, & Howe CPA's | ||||||||||||||||||
Statement of Cash Flow for Year Ended | 31-Dec-14 | |||||||||||||||||
Cash flow from operating activities | ||||||||||||||||||
NET INCOME / (LOSS) | ||||||||||||||||||
Depreciation | ||||||||||||||||||
Accounts Receivable | ||||||||||||||||||
Accounts payable | ||||||||||||||||||
Wages payable | ||||||||||||||||||
Taxes payable | ||||||||||||||||||
Net cash provided by operations | ||||||||||||||||||
Cash flow from investing activities | ||||||||||||||||||
(Purchases) sale of buliding and equipment | ||||||||||||||||||
(Purchase) sale of marketable securities | ||||||||||||||||||
(Purchase) sale of land | ||||||||||||||||||
Net cash provided by investing activities | ||||||||||||||||||
Cash flow from financing activities | ||||||||||||||||||
Issuance (repayment) of long-term debt | ||||||||||||||||||
Payment of dividend | ||||||||||||||||||
Issuance (repurchase) of common stock | ||||||||||||||||||
Net cash provided by financing activities | ||||||||||||||||||
Net cash flow | ||||||||||||||||||
Beginging Cash Balance | ||||||||||||||||||
Ending Cash Balance |
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