Prepare balance sheets at December 31 of each year. LYNCH SERVICES BALANCE SHEETS December 31 2015 2014 Assets AnswerLandCommon StockAccounts PayableCash $Answer $Answer Accounts Receivable Answer Answer Supplies Answer Answer AnswerLandCommon StockAccounts PayableCash Answer Answer Building Answer Answer Equipment Answer Answer Total Assets $Answer $Answer Liabilities AnswerLandCommon StockAccounts PayableCash $Answer $Answer Mortgage Payable Answer Answer Total Liabilities Answer Answer Stockholders' Equity AnswerLandCommon StockAccounts PayableCash Answer Answer Retained Earnings Answer Answer Total Stockholders' Equity Answer Answer Total Liabilities and Stockholders' Equity $Answer $Answer b. The firm declared and paid a cash dividend of $11,250 in December 2015. Compute its net income for 2015. $Answer Analyzing Transactions Using the Financial Statement Effects Template Record the effect of each of the following independent transactions using the financial statements effects template provided. Confirm that Assets = Liabilities + Equity for each transaction. Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Revenue - Expenses = Net Income (1) Receive 37500 in exchange for common stock. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (2) Borrow 7500 from bank. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (3) Purchase 1500 of supplies inventory on credit. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (4) Receive 11250 cash from customers for services provided. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (5) Pay 1500 cash to supplier in transaction 3. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (6) Receive order for future services with 2625 advance payment. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (7) Pay 3750 cash dividend to shareholders. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (8) Pay employees 4500 cash for compensation earned. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer (9) Pay 375 cash for interest on loan in transaction 2. Answer + Answer = Answer + Answer + Answer Answer - Answer = Answer Totals $Answer + $Answer = $Answer + $Answer + $Answer $Answer - $Answer = $Answer Preparing a Balance Sheet, Computing Net Income, and Understanding Equity Transactions At the beginning of 2015, Barth Company reported the following balance sheet. Assets Liabilities Cash $2,400 Accounts Payable $6,000 Accounts Receivable 7,350 Equity Equipment 5,000 Common Stock 23,750 Land 25,000 Retained Earnings 10,000 Total Assets $39,750 Total Liabilities and Equity $39,750 Required a. At the end of 2015, Barth Company reported the following assets and liabilities: Cash, $4,400; Accounts Receivable, $9,200; Equipment, $4,500; Land, $25,000; and Accounts Payable, $3,750. Prepare a year-end balance sheet for Barth. ( Hint: Report equity as a single total.) BARTH COMPANY Balance Sheet Decemer 31, 2015 Assets Liabilities AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash $Answer AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash $Answer AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash Answer Equipment Answer Equity Land Answer AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash Answer AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash $Answer AnswerTotal AssetsTotal Liabilities and EquityAccounts PayableStockholders' EquityAccounts ReceivableCash $Answer b. Assuming that Barth did not issue any common stock during the year but paid $6,000 cash in dividends, what was its net income or net loss for 2015? $Answer c. Assuming that Barth issued an additional $6,750 common stock early in the year but paid $10,500 cash in dividends before the end of the year, what was its net income or net loss for 2015? $Answer Applying the Accounting Equation to the Balance Sheet Determine the missing amount in each of the following separate company cases. Assets Liabilities Equity a. $110,000 $42,500 $ ? b. ? 16,100 14,000 c. 46,500 ? 26,300 a. $Answer b. $Answer c. $Answer Determining Retained Earnings and Net Income Using the Balance Sheet The following information is reported for Kinney Corporation at the end of 2015. Accounts Receivable $69,000 Retained Earnings $? Accounts Payable 33,000 Supplies Inventory 27,000 Cash 24,000 Equipment 414,000 Common Stock 330,000 a. Compute the amount of retained earnings at the end of 2015. $Answer b. If the amount of retained earnings at the beginning of 2015 was $90,000, and $36,000 in cash dividends were declared and paid during 2015, what was its net income for 2015? $Answer Identifying and Classifying Financial Statement Items For each of the following items, identify whether they would most likely be reported in the balance sheet (B) or income statement (I). (a) Machinery AnswerBI (b) Prepaid Advertising AnswerBI (c) Supplies Expense AnswerBI (d) Advertising Expense AnswerBI (e) Taxes Expense AnswerBI (f) Factory Buildings AnswerBI (g) Receivables AnswerBI (h) Common Stock AnswerBI (i) Taxes Payable AnswerBI (j) Treasury Stock AnswerBI (k) Long-Term Debt AnswerBI (l) Cost of Goods Cold AnswerBI