Ask Question, Ask an Expert


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.


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

Assignmentparticipation topic mandatoryinventory additional

Assignment Participation Topic (Mandatory) Inventory Additional Lecture Notes Class, Let me see if I can work up an example of how to calculate and use the different inventory methods. Let us use the following informatio ...

Modern furniture company had finally arrived at the point

Modern Furniture Company had finally arrived at the point where it had a sufficient excess cash flow of $4.8 million to consider paying a dividend. It had 3 million shares of stock outstanding and was considering paying ...

1 what is the beta of a firm whose equity has an expected

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 corporations is: ...

Internal control procedures are required for all

Internal control procedures are required for all transaction cycles within an accounting cycle. This week you are addressing the control procedures that would be the most effective in the general ledger and reporting sys ...

Essay question internal accountingone to two pages single

Essay Question Internal Accounting One to two pages (single spaced, Times New Roman 12 font) discussion. Clear and well-argued showing depth of knowledge and understanding of the concepts. Check grammar and spelling. Que ...

Assume a local subway reported the following results for

Assume a local Subway reported the following results for April and May August September Unit Sales      2,000             2,500 Cost of Food Sold  $   1,000  $         1,250 Wages and Salaries      1,525             1,67 ...

Term paperfirmsteamsanadarko petroleumadams michaelaellis

Term Paper Firms Teams Anadarko Petroleum Adams, Michaela Ellis, Tatiana Jenkins, Jordan Samuel, Brittany Cheniere Energy Amaefule, Frankie Fields, Brittanie Johnson, Brandon Small, Devin Chevron Corporation Brown, Tori ...

Module 1 1 page topic selectionselect any topic in

Module 1 ( 1 Page ) Topic Selection Select any topic in accounting of interest that connects to the subject matter of this course. If you have already selected the area of your doctoral research, you may choose a topic i ...

Assignmentapplication implementation of the balanced

Assignment Application: Implementation of the Balanced Scorecard APA Format Implementation of the Balanced Scorecard The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. ...

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 ...

  • 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