| 6. | Determined that the market value of the land is $50,000. This is what I need help with | (b-1) | Prepare an income statement, statement of changes in stockholders' equity, year-end balance sheet, and statement of cash flows for the year 2012. (Amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) | | Webster Consulting Income Statement For the Period Ended December 31, 2012 | | Service Revenue | $ | | Expenses | | | | | | (Click to select)Net lossNet income | $ | | | | | | | Webster Consulting Statement of Changes in Stockholders' Equity For the Period Ended December 31, 2012 | | (Click to select)DividendsOffice expensesCommon stock issuedBeginning common stockService revenue | $ | | | (Click to select)Less: Common stock issuedBeginning common stockAdd: Common stock issuedEnding common stockService revenue | | | | | | | | (Click to select)Common stock issuedService revenueNotes payableDividendsEnding common stock | | $ | | (Click to select)Beginning retained earningsExpensesDividendsService revenueCash | $ | | | (Click to select)Cash payment for landLess: Net lossRetained earningsAdd: Net incomeCash payment on debt | | | | | | | | (Click to select)DividendsEnding retained earningsNotes payableService revenueExpenses | | | | | | | | Total Stockholders' Equity | | $ | | | | | | | | Webster Consulting Balance Sheet As of December 31, 2012 | | Assets | | | | (Click to select)Prepaid expensesInventoriesInvestmentsNotes payableCash | $ | | | (Click to select)LandPrepaid expensesInventoriesAccounts payableInvestments | | | | | | | | Total Assets | | $ | | | | | | Liabilities | | | | (Click to select)Accrued expensesNotes payableTaxes owedAccounts payableLong-term debt | | $ | | Stockholders' Equity | | | | (Click to select)Preferred stockEquity-fund balancePaid-in capitalTreasury stockCommon stock | $ | | | (Click to select)Retained earningsNet incomeCash payment on debtCash payment for landDividends | | | | | | | | Total Stockholders' Equity | | | | | | | | Total Liabilities and Stockholders' Equity | | $ | | | | | | | | Webster Consulting Statement of Cash Flows For the Year Ended December 31, 2012 | | Cash Flows From Operating Activities: | | | | (Click to select)Cash payments for expensesNet decrease in cashCash receipts from customersNet increase in cashCash payment on debt | $ | | | (Click to select)Cash payment on debtCash receipts from customersNet increase in cashCash payments for expensesNet decrease in cash | | | | | | | | Net Cash Flow From Operating Activities | | $ | | Cash Flows From Investing Activities: | | | | (Click to select)Cash payment for landCash payments for expensesCash receipts from customersCash receipts from stock issueCash receipts from borrowed funds | $ | | | | | | | Net Cash Flow from Investing Activities | | | | Cash Flows From Financing Activities: | | | | (Click to select)Cash receipts from stock issueCash payment for landCash receipts from customersCash receipts from borrowingCash payments for expenses | $ | | | (Click to select)Cash payments for expensesCash receipts from borrowingCash receipts from customersCash receipts from stock issueCash payment for land | | | | | | | | Net Cash Flow from Financing Activities | | | | | | | | (Click to select)Net incomeAdd: Beginning cash balanceLess: Beginning cash balanceNet increase in cashNet decrease in cash | | | | (Click to select)Net increase in cashNet decrease in cashLess: Beginning cash balanceNet incomeAdd: Beginning cash balance | | | | | | | | Ending Cash Balance | | $ | | | | | | | | (b-2) | Prepare an income statement, statement of changes in stockholders' equity, year-end balance sheet, and statement of cash flows for the year 2013. (Amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) | | Webster Consulting Income Statement For the Period Ended December 31, 2013 | | Service Revenue | $ | | Expenses | | | | | | (Click to select)Net incomeNet loss | $ | | | | | | | Webster Consulting Statement of Changes in Stockholders' Equity For the Period Ended December 31, 2013 | | (Click to select)Common stock issuedOffice expensesBeginning common stockService revenueDividends | $ | | | (Click to select)Service revenueBeginning common stockAdd: Common stock issuedEnding common stockLess: Common stock issued | | | | | | | | (Click to select)DividendsCommon stock issuedService revenueNotes payableEnding common stock | | $ | | (Click to select)Service revenueCashExpensesDividendsBeginning retained earnings | | | | (Click to select)Add: Net incomeCash payment on debtCash payment for landRetained earningsLess: Net loss | | | | (Click to select)Retained earningsCash payment on debtCash payment for landAdd: DividendsLess: Dividends | | | | | | | | (Click to select)Notes payableService revenueEnding retained earningsExpensesDividends | | | | | | | | Total Stockholders' Equity | | $ | | | | | | | | Webster Consulting Balance Sheet As of December 31, 2013 | | Assets | | | | (Click to select)Prepaid expensesCashInventoriesAccounts payableInvestments | $ | | | (Click to select)Accounts payableLandPrepaid expensesInvestmentsInventories | | | | | | | | Total Assets | | $ | | | | | | Liabilities | | | | (Click to select)Accrued expensesLong-term debtNotes payableLandTaxes owed | | $ | | Stockholders' Equity | | | | (Click to select)Equity-fund balancePaid-in capitalCommon stockPreferred stockTreasury stock | $ | | | (Click to select)Retained earningsCash payment on debtDividendsNet incomeCash payment for land | | | | | | | | Total Stockholders' Equity | | | | | | | | Total Liabilities and Stockholders' Equity | | $ | | | | | | | | Webster Consulting Statement of Cash Flows For the Year Ended December 31, 2013 | | Cash Flows From Operating Activities: | | | | (Click to select)Cash receipts from customersNet decrease in cashCash payments for expensesCash payment on debtNet increase in cash | $ | | | (Click to select)Cash payments for expensesNet increase in cashNet decrease in cashCash payment on debtCash receipts from customers | | | | | | | | Net Cash Flow from Operating Activities | | $ | | Cash Flows From Investing Activities | | | | Cash Flows From Financing Activities: | | | | (Click to select)Cash receipts from customersCash payment on debtCash payments for expensesCash payment for dividendsCash receipts from stock issue | | | | (Click to select)Cash payment for dividendsCash receipts from customersCash receipts from stock issueCash payments for expensesCash payment on debt | | | | (Click to select)Cash payment for dividendsCash payment on debtCash payments for expensesCash receipts from stock issueCash receipts from customers | | | | | | | | Net Cash Flow from Financing Activities | | | | | | | | (Click to select)Less: Beginning cash balanceAdd: Beginning cash balanceNet decrease in cashNet increase in cashNet income | | | | (Click to select)Less: Beginning cash balanceNet incomeNet decrease in cashAdd: Beginning cash balanceNet increase in cash | | | | | | | | Ending Cash Balance | | $ | | | | | | | | (c) | Determine the amount of cash that is in the retained earnings account at the end of 2012 and 2013. | | | | | | | | Retained earnings cannot be traced to cash. | | | 2012: $108000, 2013: $164500 | | | 2012: $71000, 2013: $124500 | | |
