Question
Extreme Edge, Inc. Financial Statement Articulation Cash Reconciliation: Accounts 2013 2012 Beginning cash balanceJanuary 1 $30 $0 +/- net change in cash (per the statement
Extreme Edge, Inc.
Financial Statement Articulation
Cash Reconciliation:
Accounts | 2013 | 2012 |
Beginning cash balanceJanuary 1 | $30 | $0 |
+/- net change in cash (per the statement of cash flows) | 15 | 30 |
Ending cash balance (per the December 31 balance sheet) | $45 | $30 |
1. Reconcile cash for 2014.
Contributed Capital Reconciliation (#1):
Accounts | 2013 | 2012 |
Beginning contributed capitalJanuary 1 | $420 | $0 |
+ Common stock issued (per the statement of shareholders equity) | 8 | 42 |
+ Additional paid in capital (per the statement of shareholders equity) | 72 | 378 |
Ending contributed capital (per the December 31 balance sheet) | $500 | $420 |
2. Reconcile contributed capital for 2014.
Contributed Capital Reconciliation (#2):
Accounts | 2013 | 2012 |
Beginning contributed capitalJanuary 1 | $420 | $0 |
+ Cash from the issue of common stock (per the statement of cash flows) | 80 | 420 |
Ending contributed capital (per the December 31 balance sheet) | $500 | $420 |
3. Reconcile contributed capital for 2014.
Retained Earnings (#1):
Accounts | 2013 | 2012 |
Beginning retained earningsJanuary 1 | $25 | $0 |
+ Net income (per the statement of shareholders equity) | 21 | 33 |
- Dividends (per the statement of shareholders equity) | (2) | (8) |
Ending retained earnings (per the December 31 balance sheet) | $44 | $25 |
4. Reconcile retained earnings for 2014.
Retained Earnings (#2):
Accounts | 2013 | 2012 |
Beginning retained earningsJanuary 1 | $25 | $0 |
+ Net income (per the income statement) | 21 | 33 |
- Dividends (per the statement of cash flows) | (2) | (8) |
Ending retained earnings (per the December 31 balance sheet) | $44 | $25 |
5. Reconcile retained earnings for 2014.
Equipment (#1):
Accounts | 2013 | 2012 |
Purchase of equipment (per the statement of cash flows) | $100 | $500 |
Plus: net or book value of equipmentfrom previous December 31 | 400 | 0 |
Net or book value of equipmentJanuary 1 | 500 | 500 |
Less: Depreciation expense (per the income statement) | (120) | (100) |
Net or book value of equipment (per the December 31 balance sheet) | $380 | $400 |
6. Reconcile equipment for 2014.
Equipment (#2):
Accounts | 2013 | 2012 |
Purchase of equipment (per the statement of cash flows) | $100 | $500 |
Plus: cost of previous years equipment purchases | 500 | 0 |
Total cost of equipmentJanuary 1 | 600 | 500 |
Less: Accumulated depreciation (per the income statements)* | (220) | (100) |
Net or book value of equipment (per the December 31 balance sheet) | $380 | $400 |
* accumulated depreciation for 2013 of $220 (2012 depreciation expense of $100 + 2013 depreciation
expense of $120)
7. Reconcile equipment for 2014.
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