drop down list (all are the same)
X & fx B D E G H K (This problem is adapted from Problem 4B-2, part 2, in your text.) 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 description of a transaction and 2) a partially completed balance sheet, income statement, and statement of retained earnings. Transactions A through H require 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. All 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 many) blue cells that do not need to be changed. 5 7 + 9 0 -1 2 Instructions Trans b Transa Trans Trans d Transe Transf Trans 9 Transh Trans READY 07 SociV X fx D EFG H JK Income Statement Statement of Financial Position ASSETS Current assets: Total revenues Operating expenses Total current assets Transaction: The company earned service revenge of $2,000 on a special job that was completed June 29, 2017 Collection will be made during July 2017, no entry has been recorded Total operating expenses Earnings from operations Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net income Total current liabilities Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance + Total shareholders' equity Total liabilities and shareholders' equity Ending balance 26 27 30 32 15 36 37 39 40 Trans Trans Trans Trans Trans Trand BEADS LE HOME URMULAS REVIEW ENTRE CON Enable Editing 5 PROTECTED VIEW Be carefutiles from the Internet can contain viruses. Unless you need to edit it's safe to stay in Protected View Xf A EFG H Income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses Total current assets 7 B 9 10 11 12 Transaction: On March 31, 2017, Cactus paid a six-month premium for property insurance in the amount of $3,200 for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount Total operating expenses Earnings from operations Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net Income Total current liabilities 14 15 16 17 Total liabilities Shareholders' Equity 18 19 20 Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 27 28 29 30 10 33 35 36 37 39 41 Trans | | Ta structions Trans fi E Enabledling PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View x fe D EFG H Income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses: Transaction: Al June 30, 2017, wages of $900 were earned by employees but not yet paid. The employees will be paid on the next payroll date, which is July 13, 2017 Total current assets Total operating expenses Earnings from operations 10 11 12 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net income 14 15 Total current liabilities 16 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 27 29 30 34 35 36 37 10 Trac Tas instruction Trans Trans READ e PROTECTED VIEW Be careful-Files from the Internet can contain viruses. Unless you need to edit 's alerto stay in Protected View Enable Editing D ETG H 1 Income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses Total current assets Transaction On June 1, 2017, Cactus collected two months maintenance revenue of $450. At that date, Cactus debited Cash and credited Uneamed Maintenance Revenue for $450. One-half of it has now been earned but not yet recorded. Total operating expenses Earnings from operations Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net income Total current liabilities Total liabilities Shareholders' Equity 7 8 19 0 21 Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 27 29 20 31 32 14 35 10 Trans Trama Transa READ e Module Transactions FLE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW ENTERPRISE CONNECT PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View X fx D EFG H 1 JK income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses: Total current assets Transaction: A service truck was purchased on July 1, 2016. The truck cost $16,000 and was expected to have a useful life to the business of 8 years, and a residual value of $4,000. The business uses the straight-line method of calculating depreciation Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance 9 0 Total shareholders' equity Total liabilities and shareholders' equity Ending balance es 26 30 31 32 33 35 30 37 39 40 Instructions Transa Transb Trans Trans d Trans Trans Trans Transi READS BE BI 03 IX fx D EFG H Income Statement Statement of Financial Position ASSETS Current assets: 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 operating expenses Earnings from operations Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Earnings before income taxes Net income Total current liabilities Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance 1 Total shareholders' equity Total liabilities and shareholders' equity Ending balance 25 26 27 28 35 36 37 38 39 40 Transb instructions Transe Transa Trans Trans Trans Tran Trans READ BI e VIEW ENTERISE CONNECT PROTECTED VIEW Becaul-Files from the Internet can contain viruses. Unless you need to edit it's safe to stay in Protected View Enable Editing x fx D EFG H 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 0% 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 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance 1 Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 26 28 35 27 38 39 41 Instructions Transa Trans Trans Trans d Te READ REV EW VIEW ENTERPRISE CONNECT PROTECTED VIEW Be careful-Files from the Internet can contain viruses. Unless you need to edit, it's safe to stay in Protected View Enablediting XR A D EFG H Income Statement Statement of Financial Position ASSETS Current assets - Total revenues Operating expenses: Transaction. The income before tax AFTER all the adjustments was $30,000. The company's federal income tax rate is 30 percent. No entry has been made yet for income tax expense Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations 0 1 12 13 Earnings before income taxes Net income Total current liabilities 15 16 17 18 19 Total liabilities Shareholders' Equity Statement of Retained Earnings Beginning balance Total shareholders' equity Total abilities and shareholders' equity Ending balance 26 20 29 30 31 39 instruction Trans Trans Trans Trand Transa Trans Trans BATT so e 03 PROTECTED VIEW Be carefules from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View Enablediting EFG L Income Statement Statement of Financial Position ASSETS Current assets: Transaction: Cactus declared and paid dividends of $2,000. Total revenues Operating expenses: 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 Total liabilities Shareholders' Equity 18 19 20 21 Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equity Ending balance 24 25 26 27 29 30 31 71 19 41 Trans Trans THAI Trash Trans READ B D EFG Statement of Financial Position ASSETS Current assets: Tota Opera company evenue of ial job that was 29, 2017 e made during try has been
