Question

In: Accounting

76. Times Corporation The accountant for the Times Corporation prepared the following list from the company's...

76. Times Corporation
The accountant for the Times Corporation prepared the following list from the company's accounting records for the year ended December 31, 2012.

Retained earnings?Prepaid expenses$    70,000

Cash$     97,000Common stock500,000

Accounts payable70,000Accounts receivable260,000

Sales revenue1,075,000Interest income70,000

Cost of sales780,000Salary expense220,000

Land810,000Income tax expense60,000

Notes payable520,000Selling expense75,000

Inventory280,000Salaries payable55,000



Prepare a Balance Sheet for the Times Corporation in a proper format.

77. Several amounts from GM Company at December 31, 2012, are listed below. Answer the questions.

Service revenue$817,500Salaries expense$343,500

Dividends paid75,000Rent expense129,000

Buildings165,000Land150,000

Accounts payable60,000Accounts receivable42,000

Capital stock90,000Retained earnings, Jan. 1, 2012600,000

Utilities expense28,500Notes payable45,000

Income tax payable6,000Income tax expense165,000

A)Calculate net income for 2012.

B)How much is GM Company's retained earnings at the end of 2012?

78. The following information comes from the records of America Corporation:

AssetsLiabilitiesEquity

January 1, 2012$750,000$270,000$________

December 31, 2012905,000_______700,000

A)What is the amount of equity at January 1, 2012?

B)What is the amount of liabilities at December 31, 2012?

C)Assume that the company paid dividends of $310,000 during the year. How much net income did it earn during the year?

D)Assume that the company paid no dividends during the year. Without looking at the income statement, how can you tell if the company is profitable or not?

Solutions

Expert Solution

Total Assets = Total Liabilities + Total Stockholders' Equity
$1,517,000 = $645,000 + Total Stockholders' Equity
Total Stockholders' Equity = $872,000

Total Stockholders' Equity = Common Stock + Retained Earnings
$872,000 = $500,000 + Retained Earnings
Retained Earnings = $372,000

ekkarill92 answered 2 years ago
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