Instructions (A) Show the elects of the previous transactions on the accounting equation using the following format. (a) Total assets $25,000 Assets Date Cash Accounts Receivable + Supplies + Equipment - Liabilities Notes Accounts Payable Pavable Common Stock Stockholders' Equity Retained Earnings Rev. - Exp - Div. Include margin explanations for any changes in the Retained Earnings account in your analysis. (b) Prepare an income statement for the month of June. (c) Prepare a balance sheet at June 30, 2017 (b) Net income $4,450 (d) Cash $8,100 P1-5A Financial statement information about four different companies is as follows. Donatello Leonardo Michelangelo Company Company Company Raphael Company Determine financial statement amounts and prepare retained earnings statement. (LO 4,5) $ 75,000 48,000 (a) $110,000 (d) 60,000 $ 75,000 45,000 $150,000 (j) 100,000 January 1, 2017 Assets Liabilities Stockholders' equity December 31, 2017 Assets Liabilities Stockholders' equity Stockholders' equity changes in year Additional investment Dividends Total revenues Total expenses (b) 55,000 40,000 137,000 75,000 200,000 (h) 130,000 (k) 80,000 140,000 (e) 15,000 (c) 6,000 350,000 335,000 (f) 420.000 10,000 14,000 (i) 342,000 15,000 10,000 500,000 (1) 382,000 Instructions (a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities Stockholders' Equity = $27,000.) (b) Prepare the retained earnings statement for Leonardo Company. Assume beginning retained earnings was $20,000. Write a memorandum explaining the sequence for preparing financial state. ments and the interrelationship of the retained earnings statement to the income statement and balance sheet. 41 P1-5A Financial statement information about four different companies is as follows. Determine fin amounts and Donatello Leonardo Michelangelo Raphael earnings state Company Company Company Company (LO 4,5) January 1, 2017 Assets $ 75,000 $110,000 $150,000 Liabilities 48,000 (d) $ 75,000 Stockholders' equity (a) 60,000 45,000 100,000 December 31, 2017 Assets (b). 137,000 200,000 (k) Liabilities 55,000 75,000 80,000 Stockholders' equity 40,000 130,000 140,000 Stockholders' equity changes in year Additional investment 15,000 10,000 15,000 Dividends 6,000 (f) 14,000 10,000 Total revenues 350,000 420,000 500,000 Total expenses 335,000 382,000 342,000 (1) (h) Instructions (a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities Stockholders' Equity = $27,000.) (b) Prepare the retained earnings statement for Leonardo Company. Assume beginning retained earnings was $20,000. Write a memorandum explaining the sequence for preparing financial state ments and the interrelationship of the retained earnings statement to the income statement and balance sheet. 41
