* READ CHAPTER ONE OF Survey of Accounting, 9th Edition, by Carl S. Warren and Amanda G. Farmer *

Answer Problems 1, 2, 3, and 4. at the end of the chapter.

P1-1

The amounts of the assets and liabilities of Viva Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $135,000 and the common stock was $45,000 as of October 1, 20Y5, the beginning of the current year. Dividends of $9,000 were paid during the year.

Accounts payable	$157,500
Accounts receivable	288,900
Cash	149,400
Common stock	63,000
Fees earned	810,000
Miscellaneous expense	33,300
Rent expense	162,000
Supplies	11,700
Supplies expense	34,200
Taxes expense	27,000
Utilities expense	67,500
Wages expense	382,500

1. Prepare an income statement for the current year ended September 30, 20Y6.

2. Prepare a statement of stockholders equity for the current year ended September 30, 20Y6.

3. Prepare a balance sheet as of September 30, 20Y6.

P1-2

The financial statements at the end of Paradise Realtys first month of operations are shown below.

1. Would you classify a realty business such as Hamel Realty as a manufacturing, merchandising, or service business?

2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o).

P1-3

The following financial data were adapted from a recent annual report of Target Corporation (TGT) for the year ending January 31.

	In millions
Accounts payable	$ 9,761
Cash	1,556
Common stock	43
Cost of sales	53,299
Debt and other borrowings	11,275
Income tax expense	746
Interest expense	461
Inventories	9,497
Other assets	4,704
Other expenses	2,190
Other liabilities	8,957
Property and equipment, net	25,533
Sales	75,356
Selling, general, and administrative expenses	15,723

1. Prepare Targets income statement for the year ending January 31.

2. Prepare Targets statement of stockholders equity for the year ending January 31.

Use the following additional information for the year:

Common stock, Feb. 1 of prior year	$ 45
Retained earnings Feb. 1 of prior year	6,495
Other stockholder equity items on Feb. 1 of prior year	5,111
Dividends	1,347
Other items affecting retained earnings	(2,068)
Other items affecting common stock	(2)
Other items affecting stockholders equity	126

3. Prepare a balance sheet as of January 31.

P1-4

The following cash data for the year ended December 31 were adapted from a recent annual report of Alphabet (GOOG), formerly known as Google. The cash balance as of January 1 was $12,918 (in millions).

	In millions
Payments on debt	$ 4,377
Proceeds from disposals of property and equipment	99
Purchases of investments (marketable securities)	92,195
Net cash provided by operating activities*	37,496
Other net cash flows provided by investing activities	60,695
Other net cash flows used by financing activities	3,921

Prepare Alphabets statement of cash flows for the year ended December 31.

PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 $149,300 Fees earned. Operating expenses: Wages expense... Rent expense. Supplies expense Utilities expense Miscellaneous expense. Total operating expenses Net income $ (a) 14,400 12,000 8,100 4,950 (69,300) $ (b) PARADISE REALTY Statement of Stockholders' Equity For the Month Ended November 30, 2013 Common Retained Stock Earnings Balances, Nov. 1, 20Y3..... $ 0 $ 0 Issuance of common stock.. 270,000 Net income (c) Dividends.... (d) Balances, Nov. 30, 20Y3. $270,000 $(e) Total $ 0 270,000 (c) (d) $314,000 PARADISE REALTY Balance Sheet November 30, 20Y3 Assets Cash... Supplies Land.. Total assets.. Liabilities Note payable ... Stockholders' Equity Common stock Retained earnings... Total stockholders' equity Total liabilities and stockholders' equity.. $ 99,200 6,000 (f) $ (9) $ 7,200 $(h) (i) (1) $ (k) $ (1) (68,100) $ (m) PARADISE REALTY Statement of Cash Flows For the Month Ended November 30, 2083 Cash flows from (used for) operating activities: Cash received from customers...... Cash paid for expenses and to creditors... Net cash flows from operating activities.. Cash flows used for investing activities: Cash paid for acquisition of land..... Cash flows from (used for) financing activities: Cash received from issuing common stock. Deduct dividends....... Net cash flows from financing activities. Net increase in cash during month Cash as of November 1..... Cash as of November 30 (216,000) $ 270,000 (36,000) $ (0) 0 $ (0)