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 Supplies Expense 3,230 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 504,500 Expenses: Salaries expense 253,700 Rent expense 72,200 Utilities expense 27,600 Depreciation expense 9,500 Supplies expense 3,230 Insurance expense 1,810 Miscellaneous expense 3,800 Total expenses 371,840 Net income 132,660 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 289,900 Expenses: Wages expense 228,000 Rent expense 61,000 | Utilities expense 23,250 Depreciation expense 15,100 Insurance expense 7,400 Supplies expense 3,620 Miscellaneous expense 5,890 Total expenses 344,260 Net loss 54,360 Income Statement FedEx Corporation (FDX) had the following revenue and expense account balances (in millions) for a recent year ending May 31: Depreciation Expense $810 Fuel Expense 2,827 Maintenance and Repairs Expense 1,377 Other Expense (Income) Net 4,374 Provision for Income Taxes 705 Purchased Transportation 1,053 Rentals and Landing Fees 1,531 Revenues 21,627 Salaries and Employee Benefits 7,719 a. Prepare an income statement. FedEx Corporation Income Statement For the Year Ended May 31 (in millions) Revenues 21,627 Expenses: Salaries and employee benefits 7,719 Purchased transportation 1,053 Rentals and landing fees 1,531 Depreciation expense 810 Fuel expense 2,827 Maintenance and repairs expense 1,377 Provision for income taxes 705 Other expense (income) net 4,374 Total expenses 20,396 Net income 1,231 Feedback b. Compare your income statement with the income statement that is available at FedEx's Web site (http://investors.fedex.com). Under Annual Report, select Download PDF. What similarities and differences do you see? The income statements are very similar . The actual statement, which is for the year ended May 31, includes additional expense and income classifications Statement of stockholders' equity Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 2022, are as follows: Common Stock Jan. 1 75,000 25,000 Feb. 15 Retained Earnings Dividends Dec. 31 Mar. 31 160,000 160,000 Jan. 1 (2092) Dec. 31 4,150,800 700,000 June 30 40,000 Dec. 31 40,000 40,000 40,000 Sept. 30 Dec. 31 Prepare a statement of stockholders' equity for the year ended December 31, 2012. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Climate Control Systems Co. Statement of Stockholders' Equity For the Year Ended December 31, 2042 Common Stock Retained Earnings Total Balances, January 1, 20Y2 75,000 4,150,800 4,225,800 Issued common stock 25,000 o 25,000 Net income o 700,000 700,000 Dividends o Balances, December 31, 20Y2V 100,000 4,690,800 4,790,800 Statement of stockholders' equity; net loss Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30, 2045, are as follows: Common Stock May 1 (2094) puly 1 10,000 7,500 Retained Earnings Dividends Apr. 30 475,500 July 31 (2014) 5,000 31,200 May 1 (2014) 5,000 Apr. 30 Oct. 31 1,250 Apr. 30 1,2501 1,2501 1,250 Jan. 31 Apr. 30 (2014) Prepare a statement of stockholders' equity for the year ended April 30, 20Y5. Restoration Arts Statement of Stockholders' Equity For the Year Ended April 30, 2015 Common Stock Retained Earnings Total Balances, May 1, 2014 10,000 475,500 485,500 Issued common stock 7,500 0 7,500 Net loss 0 31,200 31,200 Dividends o 5,000 5,000 Balances, April 30, 2015 17,500 439,300 456,800 Classifying Assets Identify each of the following as a current asset or property, plant, and equipment: 1. Accounts Receivable Current asset 2. Building Property, plant, and equipment 3. Cash Current asset 4. Equipment Property, plant, and equipment 5. Prepaid Insurance Current asset 6. Supplies Current asset Balance Sheet Classification At the balance sheet date, a business owes a mortgage note payable of $882,000, the terms of which provide for monthly payments of $2,450. How should the liability be classified on the balance sheet? Current liability: Long-term liability: $ Balance Sheet Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2047, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows: Accounts Payable $9,490 Accounts Receivable 22,870 Accumulated Depreciation - Equipment 28,560 Common Stock 180,000 Cash Equipment 82,560 Land 110,000 Prepaid Insurance 5,310 Prepaid Rent 3,320 Retained Earnings 10,370 Salaries Payable 3,700 Supplies 570 Unearned Fees 2,750 Prepare a classified balance sheet that includes the correct balance for Cash. Dynamic Weight Loss Co. Balance Sheet June 30, 2017 Assets Current assets: Cash Accounts receivable 000 Supplies Prepaid insurance Prepaid rent Total current assets Property, plant, and equipment: Land Equipment Accumulated depreciation - equipment Book value - equipment Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Salaries payable DOO Unearned fees Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Op Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 Assets Current assets: Cash $21,000 Accounts payable 32,900 Supplies 9,500 Prepaid insurance 17,100 Land 248,600 Total current assets Property, plant, and equipment: Building $520,200 Equipment 117,700 Total property, plant, and equipment $329,100 855,800 Total assets $1,184,900 Liabilities $47,700 214,200 Current liabilities: Accounts receivable Accumulated depreciation-building Accumulated depreciation-equipment Net income Total liabilities 34,800 188,300 $485,000 Stockholders' Equity Wages payable $3,700 150,000 546,200 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 699,900 $1,184,900 Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet August 31, 20Y3 Assets Current assets: Cash Accounts receivable Supplies 2000 Prepaid insurance Total current assets Property, plant, and equipment: Land V! Building Accumulated depreciation - building Book value - building Equipment Accumulated depreciation - equipment Book value - equipment