E D G K 2 (This problem is adapted from Problem 4B-2, part 2 in your text.) 4 5 6 7 8 Cactus Company's annual accounting year ends on June 30. It is lune 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). 9 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 require adjusting entries on June 30, 2017; transaction 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 for even many blue cells that do not need to be changed. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 38 29 30 52 33 34 30 19 40 Instructions Transa Trans Transe Trans Trans HEAD Trans |||| Tras 03 3 PROTECTED VIEW de crom the it can contain viruses. Unless you need to do to stym Protected View Enable Editing x fi A D EFG JK Income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses Transaction The company earned service revenue of $2,000 on a special job that was completed June 29, 2017 Collection will be made during July 2017, no entry has been rocorded Total current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Labilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income Total current liabilities 13 19 Total abilities Shareholders' Equity Statement of Retained Earnings Beginning balance Total shareholders' equity Total liabilities and shareholders' equily Ending balance Tam Tantra Tranu Trum HEADY e OM PROTECTED VIIW le candles frontein het can contains. Unless you need to edit's safe to stay in Protected View Enable Editing f D A EFG H WK Income Statement Statement of Financial Position ASSETS Current assets Total revenues Operating expenses: Total current assets Transactions on March 31, 2017 Cactus paid a six-month premium for property insurance In the amount of $3,200 fot coverage starting on that date Cash was created and prepaid Insurance was debited for this amount Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: Total operating expenses Earnings from operations Earnings before income taxes Net income 1 14 15 16 Total current liabilities Total Babies Shareholders' Equity 19 Statement of Retained Earnings Beginning balance Total shareholders' equity Total abilities and shareholders' equity Ending balance CA OS 2 PROTECTED VIEW Be care-les from the Internet can contains. Unless you need to ed, it's safe to stay in Protected View Enable Edding A D EFG H JK Income Statement Statement of Financial Position ASSETS Current assets: 5 Total revenues Operating expenses Transaction. At lune 30, 2017, wages of $900 were earned by employees but not yet paid. The employees will be paid on the ned payroll date, which is uly 13. 2017 7 3 Total current assets Total operating expenses Earnings from operations 10 Yotal assets WBILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities: 72 Earnings before income taxes Net income Total current libilities 16 Totallibilities Shareholders' quity Statement of Retained Earnings Beginning balance Total shareholders' equity Total abilities and shareholders' equilty Ending balance Wh CB 2 A D EFG Income Statement statement of Financial Position ASSETS Current sets: 4 Total revenues Operating expenses: Total current assets transaction on June 1, 2017 Cactus collected two months maintenance eve of SASO At that date, Cactus debited Cash and created Unemed Maintenance Revenue for $450 One-half at it has now been earned but not yet recorded. Total assets LABLES AND SHAREHOLDERS' EQUITY Lates Current abilities: Total operating expenses Earnings from operations 10 11 12 13 14 tamnings before income taxes Net income Total current abdities Total liabilities Shareholders' Equity Statement of Retained in Beginning balance Total shareholders equity Total bland shareholders equity Ending balance TETT EEN RI e D EFG H BK Income Statement Statement of Financial Position ASSETS Carent assets: Total revenues Operating expenses + Total current sets Transaction 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 years, and residual value of $4.000. The businesses the straight- method of desting depreciation Total assets UABILITIES AND SHAREHOLDERS' EQUITY Labilities Currentlisbites Total operating sapere Tarnings from operations 10 2 Earnings before income taves Not income Total current liabilities Total abilities Shareholders' Equity Statement of Retained Earnings Benin balance Total shareholders equity Totalities and shareholders' equity Ending balance e