Exercise 1 - Jason Bear, an Outdoor Outfitter, has compiled the following financial information as of December 31, 2016.
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Revenues during 2014-camping fees
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$140,000
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Notes payable
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$60,000
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Revenues during 2014-general store
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47,000
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Expenses during 2014
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150,000
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Accounts payable
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11,000
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Supplies on hand
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2,500
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Cash on hand
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20,000
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Common stock
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20,000
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Original cost of equipment
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105,500
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Retained earnings
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?
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Fair value of equipment
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140,000
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Instructions -
Determine Bear Park's net income for 2016.
Prepare a balance sheet for Bear Park as of December 31, 2016.
Exercise 2 - Selected transactions for Lauren Rountree Company during its first month in business are presented below.
Sept. 1 Invested $10,000 cash in the business in exchange for common stock.
5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.
25 Paid $2,400 cash on balance owed for equipment.
30 Declared and paid a $500 cash dividend.
Campbell's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock; No. 332 Dividends.
(a) Journalize the transactions of the general journal. (Omit explanations.)
(b) Post the transactions using the standard t-account form.
Exercise 3 - Determine the missing amounts. Show calculations
Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2014, Mark Inc and Paul Enterprises.
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Mark Inc
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Paul Enterprises
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Beginning of year:
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Total assets
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$97,000
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$129,000
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Total liabilities
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85,000
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(c)
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Total stockholders' equity
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(a)
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75,000
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End of year:
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Total assets
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160,000
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180,000
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Total liabilities
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120,000
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50,000
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Total stockholders' equity
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40000
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130,000
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Changes during year in stockholders' equity:
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Additional investment
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(b)
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25000
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Dividends
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24,000
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(d)
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Total revenues
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215,000
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100,000
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Total expenses
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175,000
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55000
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Beginning Stockholder Equity+Revenues+Additional Investment-Expenses-Dividends=Ending Stockholder Equity
Exercise 4 - Presented below is financial information related to the 2016 operations of Brian Baik Company.
Maintenance and repairs expense $97,000
Utilities expense 10,000
Salaries and wages expense 142,000
Advertising expense 3,500
Ticket revenue 335,000
Instructions - Prepare the 2016 income statement for Brian Baick Company.