Question
Part 3: Financial Statement Application Calculate and fill in the correct amounts for all blanks in the 2020 financial statements of Advanced Architects. Use
Part 3: Financial Statement Application Calculate and fill in the correct amounts for all blanks in the 2020 financial statements of Advanced Architects. Use your knowledge of the financial statement relationships to verify the accuracy of your statements upon completion. Part 4: Identify Revenues and Expenses Read each December 2020 scenario below and indicate if Super Bowl Apparel should recognize revenue, expense, or neither during December. Advanced Architects Income Statement For the Year Ended December 31, 2020 Advanced Architects Balance Sheet As of December 31, 2020 Revenue Assets Sales revenue Interest revenue 374,200 5,100 Cash 200,540 Total revenue ? Accounts receivable 21,160 Office supplies 1,970 Expenses Equipment 87,490 Advertising expense 7,800 Total assets ? Utilities expense 14,400 Salaries expense 185,650 Liabilities and Supplies expense 17,210 Stockholders' Equity Income tax expense 10,120 Liabilities: Total expenses ? Accounts payable 4,700 Salaries payable 5,200 Net income ? Notes payable 32,940 Total liabilities ? Stockholders' Equity Advanced Architects Statement of Stockholders' Equity For the Year Ended December 31, 2020 Common stock ? Retained earnings ? i) Total stockholders' equity ? a) Super Bowl Apparel had apparel sales totaling $18,000 in December. b) On December 20, Super Bowl Apparel sold sweatshirts totaling $6,000 to a customer who agreed to pay Super Bowl Apparel in January. c) On December 5, Super Bowl Apparel spent $13,000 cash to purchase new equipment. d) Super Bowl Apparel paid $1,500 for an advertisement that appeared in the Kansas City Star on December 28. e) Super Bowl Apparel received its December water bill and plans to pay the bill in January. f) Super Bowl Apparel received a $10,000 pre-order from a customer for Chiefs apparel to be delivered in 2021. g) On December 26, Super Bowl Apparel hired an electrician to fix a broken light fixture. The electrician charged $120 and sent Super Bowl Apparel a bill. h) Super Bowl Apparel paid $2,000 for December rent. On December 9, Super Bowl Apparel purchased $1,000 of office supplies. Total liabilities and j) Super Bowl Apparel used $250 of office supplies during December. Beginning common stock 50,000 stockholders' equity ? Common stock issued Ending common stock 10,000 ? Beginning retained earnings Net income 84,200 Dividends (20,000) Ending retained earnings ? Total stockholders' equity Advanced Architects Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase in cash Cash balance on December 31, 2019 Cash balance on December 31, 2020 19,870 156,420 41,200 (16,950) Revenue Expense Neither
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