Financial accounting course structure

...

- What is the net income of 2012 ?

- Ending retained earnings ?

- Ending shareholder’s equity ?

Indicate if the dollowing amounts, listed in alphabetical order, are assets (A), liabilities (L), stockholders’ equity (SE), revenue (R) or expenses (E) for Amy’s Aerobics Studio Inc. Dividends paid during the year were $900.

Accounts payable (suplies) 1,580 L

Advertising expense 500 E

Aerobics fees earned 11,500 R

Common Stock 5,500 SE

Cash 3,480 A

Equipment 4,000 Tangible A

Interest Expense 20 E

Note Payable 2,500 L

Rent expense 3,600 E

Retained earnings 1,200 SE

Supplies 6,700 A – Inventory

Utilities expense 680 E

Wages expense 2,400 E

Net income = 4300$

Beginning RE = 1200$

Dividends = 900

Income statement

Revenus (sales) 11500$ - Expenses 500+20+3600+680+2400)

Net income = 4300$

Ending retained earnings = Beginning retained earnings + Net income – Dividends

Here, 1200+4300-900=4600$

Total Assets

Liabilities

Cash = 3480$

Supplies = 6700$

Equipment = 4000$

AP = 1580$

Note payable = 2500$

Total = 4080$

SE = common stock = 5500$

RE

Total Assets = 14,180$

Total Assets = TL+SE

14,180=4080+5500+RE

RE= (14,180)-(4080+5500)

RE = 4600$ cf ending retained earnings

EXA2

Enginnering services = activity of the company

Feb 2015 :

AP = 2,000$ AR = 5,000$

Advertising expense = 300$ Cash = 10,000$

Computers = 10,500$ Interest expense = 100$

Rent expense = 3,000$ Retained earnings = 1,000$

Wages expense = 2,500$ Enginnering Services = 15,000$

Dividends = 2,000$ Paid-in-capital = 15,400$

1 – Indicate if the following elements are Asset (A), Liability (L), Expense (E), Revenue (R), Shareholder’s equity (SE)

2 – Prepare the Income Statement and balance sheet using the Statement of RE

ExA3

Feb2016 :

- The company received 5,000$ from its clients and paid its debt (2,000)

Oct2016 :

- Revenues 20,000$

- Expenses 10,000$

- Dividends 3,000$

- AR 10,000$

- Common Stock 3,000$

1 – Income statement and balance sheet using statment of SE, ending 2016