Question
Following is balance sheet information for Lynch Services at the end of 2014 and 2015. December 31, 2015 December 31, 2014 Accounts Payable $3,000 $4,500
Following is balance sheet information for Lynch Services at the end of 2014 and 2015.
| December 31, 2015 | December 31, 2014 | |
|---|---|---|
| Accounts Payable | $3,000 | $4,500 |
| Cash | 11,500 | 10,000 |
| Accounts Receivable | 21,000 | 16,500 |
| Land | 20,000 | 20,000 |
| Building | 125,000 | 130,000 |
| Equipment | 21,500 | 22,500 |
| Mortgage Payable | 45,000 | 50,000 |
| Supplies | 10,000 | 9,000 |
| Common Stock | 110,000 | 110,000 |
| Retained Earnings | ? | ? |
a. Prepare balance sheets at December 31 of each year.
| LYNCH SERVICES BALANCE SHEETS | ||
|---|---|---|
| December 31 | ||
| 2015 | 2014 | |
| Assets | ||
| LandCommon StockAccounts PayableCash | ||
| Accounts Receivable | ||
| Supplies | ||
| LandCommon StockAccounts PayableCash | ||
| Building | ||
| Equipment | ||
| Total Assets | ||
| Liabilities | ||
| LandCommon StockAccounts PayableCash | ||
| Mortgage Payable | ||
| Total Liabilities | ||
| Stockholders' Equity | ||
| LandCommon StockAccounts PayableCash | ||
| Retained Earnings | ||
| Total Stockholders' Equity | ||
| Total Liabilities and Stockholders' Equity | ||
b. The firm declared and paid a cash dividend of $5,000 in December 2015. Compute its net income for 2015. $Answer
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Accounting For Risk In The Nhs
Authors: P. Fenn, S. Diacon, R. Hodges, P. Watson
2nd Edition
1859713491, 978-1859713495
