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a)
- Purchased £ 5.000 for equipment, paying £ 2000 in cash and the balance on credit.
- Puchased supplies for £ 750 cash.
- Performed services and recognized revenue of £ 9.100, of which £ 4.600 is collected in cash and te balance is due in 31 Augu
- Paid £ 1.500 in cash for account payable.
- Declared and paid £ 2.000 in cash dividends.
- Paid £ 650 rent expense for month.
- Received a cash payment of £ 450 for services performed in (4).
- Paid £ 3.900 for employee salaries.
- Paid £ 500 for utilities on account.
b)
Revenue Services revenue £ 9, Expenses Rent expense £ 650 Salaries 3, Utilities expense 500 Total expense 5, Net income £ 4,050 (c ) Retained earnings, August 1 £ 0 Add: Net income 4, 4, Less: Dividends 2, Retained earnings, August 31 £ 2, EQUITY Share capital £ 15, Retained earnings 2, Total equity £ 17, Equity increased £ 17.050 for the month.
- The company issued shares captital for £ 15.000 cash. J. L. KANG & Co. Ltd. Income Statement For the Montth Ended August 31 J. L. KANG & Co. Ltd. Retained Earnings Statement For the Montth Ended August 31 J. L. KANG & Co. Ltd. Statement of Financial Position For the Montth Ended August 31
balance is due in 31 August.
Assets Liabilities Cash Supplies Equipment 9,000 1,700 600 6,000 3, 1 ↓ 2,900^ ↓ 2, 2 ↑ 1,300^ ↓ 1, 3 ↓ 800^ ↑ 2,100^ ↑ 1, 4 ↑ 2,500^ ↑ 4, 5 ↓ 400 6
Revenues Recognized revenue £ 7, Expenses Salaries £ 1, Rent for September 900 Advertising expense 200 Utilities expense 170 Total expenses 2, Net income £ 4, Retained earnings, August 31 £ 700 Add: Net income 4, 5, Less: Dividend £ 400 Retained earnings, September 30 £ 4, Assets Cash £ 15, Account Receivable 5, Supplies 600 Equipment 8, Total assets £ 29, Liabilities and Equity Liabilities Notes Payable £ 10, Account Payment 2,170 12, Tran- saction Account Receivable Note Payable Account Payable DONAHUE VETERINARY CLINIC Ltd. Income Statement September 30, 2017 DONAHUE VETERINARY CLINIC Ltd. Retained Earnings Statement September 30, 2017 DONAHUE VETERINARY CLINIC Ltd. Statement of Financial Position September 30, 2017
Equity Share Capital £ 13, Retained earnings 4,630 17, Total liabilities and equity £ 29,
a) Assets Cash 4500 Revenues Service revenue 6800 Expenses Advertising 500 Rent 1000 Maintenance and Repairs 400 Gasoline 2500 Utilities 400 Total expenses 4800 Net income 2000 Revenues Service revenue Expenses Retained earnings, May 1 0 Advertising Add: Net income 2000 Rent 2000 Maintenance and Repairs Less: Dividends 480 Gasoline Retained earnings, May 31 1520 Utilities Net income Liabilities and Equity Liabilities Retained earnings, May 1 Account Payable 1400 Add: Net income Notes Payable 28000 29400 Equity Less: Dividends Share capital 45000 Retained earnings, May 31 Retained earnings 1520 46520 Total liabilities and quity 75920 Assets Cash 4500 Account receivable 7420 Equipment 64000 Total assets 75920 PARK FLYING SCHOOL Ltd. Income Statement (in thousands) For the Month Ended May 31, 2017 b) Not include above (1) 900 worth d PARK Income S For the M PARK FLYING SCHOOL Ldt. Retained earings statement (in thousand) For the Month Ended May 31, 2017 PARK FLYING SCHOOL Ldt. Statement of financial position (in thousand) For the Month Ended May 31, 2017
PARK
Retained ear For the M
Assets Liabilities Equity Supplies Equipment Share Capital Retained earnings Rev 7420 64000 28000 1400 45000 6800 75920 75920 1520 Service revenue 7700 Advertising 500 1000 Maintenance and Repairs 400 Gasoline 4000 Utilities 400 Total expenses 6300 Net income 1400 Retained earnings, May 1 0 Add: Net income 1400 1400 Less: Dividends 480 Retained earnings, May 31 920 Account Receivable Note Payable Account Payable b) Not include above (1) 900 worth of services were performed and billed but not collected at May 31 d (2) 1,500 of gasoline expense was incurred but not paid PARK FLYING SCHOOL Ltd. Income Statement (in thousands) For the Month Ended May 31, 2017 PARK FLYING SCHOOL Ldt. Retained earings statement (in thousand) For the Month Ended May 31, 2017
(a)
Cosby Company Stills Company Nash Conpany
January 1, 2017 Assets 900,000 1,100,000 1,200, Liabilities 650,000 600,000 750, Equity 250,000 500,000 450, December 31, 2017 Assets 950,000 1,370,000 2,000, Liabilities 550,000 750,000 700, Equity 400,000 620,000 1,300, Equity changes in year Additional investment -50,000 150,000 100, Dividends 100,000 230,000 140, Total revenues 3,500,000 4,200,000 3,360, Total expenses 3,300,000 3,850,000 3,420, (b) Retained earnings, January 1 $200, Add: Net income 350, 550, Less: Dividends $230, Retained earning, December 31 $320,
STILLS COMPANY
Retained Earnings Statement December 31, 2017
Young Company (HK $)
a) 900, 1,500,000 b) 950, 500,000 c) -50, 1,000,000 d) 600, e) 620, 2,200,000 f) 230, 800,000 g) 1,200, 1,400,000 h) 700, i) 3,360, 150,000 j) 500, 100,000 k) 2,200, 5,000,000 l) 4,350, 4,350, (c ) The sequence of preparing financial statements is income statement, retained earnings statement, and statement of financial position. The interrelationship of the retained earnings statement to the other financial statements results from the fact that net income from the income statement is reported in the retained earnings statement and ending retained earnings reported in the retained earnings statement is the amount reported for retained earnings on the statement of financial position.
