Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Assets and liabilities of ABC Service Inc. as of December 31, 2008, and revenue and expenses for year ended December 31, 2008 are given below:

Accounts Payable         $21,000                      Property tax expense               $5,000
Accounts Receivable      25,000                      Rent expense                             3,000
Advertising expense       10,000                      Salary expense                        85,000
Building                       140,000                      Salary payable                          12,000
Cash                             10,000                      Service Revenue                     200,000
Furniture                        20,000                      Share Capital                          75,000
Interest expense              4,000                      Supplies                                   3,000
Land                              98,000                     Note Payable                            95,000

Beginning Retained Earnings were $50,000 and dividends totalled $50,000 for the year.

problems

Create the Income Statement for the year ended December 31, 2008

Create the Statement of Retained Earnings for the year

Create the Balance Sheet at December 31, 2008

Based on financial statements created, answer the problems given below:

a. Was ABC Service Inc. profitable during 2008? If yes describe by how much?

b. Did Retained Earnings increase or decrease? What is the amount of the change?

c. Which is the greater total, liabilities or total equity? Who have more of the company’s assets, creditors or the shareholders?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99387

Have any Question? 


Related Questions in Accounting Basics

Assignmentthis assignment has 2 parts 1000 10 word theory

Assignment This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory. The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sur ...

After reading the article ernst amp youngs liability for

After reading the article "Ernst & Young's Liability for Lehman Larger Than Claimed," Discuss Ernst & Young's "going-on" liability after their 2007 arbitrary cutoff of responsibility from Lehman Brothers financial statem ...

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Assignmentpart 11 which of the following would cause a

Assignment Part 1 1. Which of the following would cause a contra-asset to be credited and an expense debited? a. Recording an accrued expense b. Recording the consumption of supplies c. Recording the building depreciatio ...

Study guide1 what is the beta of a firm whose equity has an

STUDY GUIDE 1. What is the beta of a firm whose equity has an expected return of 21.30%, the risk-free rate is 7%, and the expected return on the stock market is 18%? 2. Two reasons for the agency problem in modern corpo ...

Assignmentfactsthe w company civil engineers consists of

ASSIGNMENT Facts: The W Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the va ...

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

In your own words explain the recording process and the

In your own words, explain the recording process and the accounting equation to someone who has no accounting experience. Then, give your opinion on the elements or areas that might cause the most confusion or be the mos ...

Assignment change modelassume you are the sales and

Assignment Change Model Assume you are the Sales and Marketing Director for Sea Treasures, a small group of well-known retail stores specializing in exotic sea life and high-end accessories for aquariums. The company has ...

Accounting information systems1 you have been asked by the

Accounting Information Systems 1. You have been asked by the CFO of the company where you work or previously worked to evaluate the use of a professional service organization for processing the company's payroll. Identif ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro