Question

In: Accounting

2. The following selected accounts and account balances were taken from the records of Nowell Company....

2. The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, 2018, before the closing entries were recorded.

Consulting revenue $ 9,300
Cash 8,400
Cash received from common stock issued during 2017 3,600
Travel expense 550
Dividends 1,200
Cash flow from investing activities 3,000
Rent expense 1,450
Payment to reduce debt principal 18,200
Retained earnings, January 1, 2018 14,300
Salary expense 2,500
Cash flow from operating activities 2,350
Common stock, December 31, 2018 10,700
Other operating expenses 1,800

  1. Prepare the income statement Nowell would include in its 2018 annual report.

Income Statement
For the Year Ended December 31, 2018
not attempted not attempted
Expenses
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted not attempted
Total expenses 0
not attempted $0

  1. Identify the accounts that should be closed to the Retained Earnings account. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

  • Consulting revenue checked
  • Supplies expense unchecked
  • Travel expenses unchecked
  • Salaries payable unchecked
  • Dividends unchecked
  • Cash unchecked
  • Rent expense unchecked
  • Salary expense unchecked
  • Other operating expense unchecked

  1. c-1. Determine the Retained Earnings account balance at December 31, 2018.

  2. c-2. Which of the following statement(s) is true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Net income does not include revenue of the current year.unanswered

  • Retained earnings does not include current year net income, but only the balance from previous years.unanswered
  • Retained earnings not only includes current year net income, but also the balance from previous years and reductions for dividends.unanswered
  • Retained earnings does not include the balance from previous years, but only the reductions for dividends.unanswered
  • Net income only includes revenues and expenses for the current year.unanswered

Solutions

Expert Solution


ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following selected accounts and account balances were taken from the records of Nowell Company. Except...
The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded. Consulting revenue $ 10,400 Cash 8,100 Cash received from common stock issued during Year 1 4,000 Travel expense 500 Dividends 1,500 Cash flow from investing activities 2,800 Rent expense 1,100 Payment to reduce debt principal 23,300 Retained earnings, January 1, Year 2 14,600 Salary expense 3,400...
The following selected account balances were taken from ABC Company's accounting records during 2018: January 1,...
The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 December 31, 2018 Inventory 69,000 35,000 Accounts payable 47,000 41,000 Long-term notes payable 165,000 130,000 Income tax payable 11,000 7,000 Investments 89,000 68,000 Accounts receivable 77,000 84,000 Land 60,000 89,000 Common stock 100,000 175,000 Retained earnings 26,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $422,000 Cost of goods sold 361,000 Gain on sale of investments 11,000...
The following selected account balances were taken from the trial balance of Dallas Corporation as of...
The following selected account balances were taken from the trial balance of Dallas Corporation as of June 30, 2018. All accounts have normal balances. Sales                                                                      $1,678,500 Sales Discounts                                                            31,150 Common Stock                                                       1,300,000 Salaries Expense – Sales                                             61,110 Depreciation Expense – Office Furniture                      7,250 Equipment                                                                 880,360 Travel Expense – Sales                                               28,930 Freight-Out (Delivery Costs)                                       21,400 Depreciation Expense – Sales Equipment                     4,980 Retained Earnings, July 1, 2017                             2,450,000 Utilities Expense – Office                                             9,130 Wage Expense – Office                                             136,700 Interest Expense                                                          18,990...
The following account balances were taken from the accounting records of the Senior Citizen Alternative Living...
The following account balances were taken from the accounting records of the Senior Citizen Alternative Living Center. Cash $4,750 Building $102,600 Revenue $42,500 Accounts receivable $11,400 Notes payable (due 19*9) $30,000 Restricted fund balance $19,500 Pledges receivable $31,600 Wages payable $5,100 Supplies on hand $1,250 Salary expense $46,000 Unearned revenue $7,100 Unrestricted fund balance $89,700 Depreciation expense $12,500 Accounts payable $3,800 Utilities expense $6,100 Long-term investments $26,800 Prepaid insurance $1,800 Insurance expense $900 Endowment fund balance $25,000 Supplies used expense...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December...
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash $ 21,945 Accounts receivable 46,400 Note receivable, due 2020 8,200 Merchandise inventory 34,400 Prepaid insurance 2,220 Supplies 1,280 Equipment 42,200 Accumulated depreciation, equipment 22,200 Note payable to bank, due 2020 22,000 Accounts payable 26,480 Interest payable 220 Sales 523,500 Sales discounts 1,900 Cost of goods sold 380,555 Accounts Receivable at December 31, 2018, was $55,800. Merchandise...
The following selected transactions were taken from the records of Shipway Company for the first year...
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $4,040. May 15. Received $2,020 as partial payment on the $5,370 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $4,040 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off...
The following selected transactions were taken from the records of Shipway Company for the first year...
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $8,030. May 15. Received $500 as partial payment on the $7,430 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $8,030 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off...
The following selected transactions were taken from the records of Shipway Company for the first year...
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $8,450. May 15. Received $500 as partial payment on the $7,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $8,450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off...
The following selected transactions were taken from the records of Shipway Company for the first year...
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13 Wrote off account of Dean Sheppard, $5,190. May 15 Received $2,600 as partial payment on the $6,900 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27 Received $5,190 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off...
6. The following accounts and balances were drawn from the records of Barker Company at December...
6. The following accounts and balances were drawn from the records of Barker Company at December 31, 2018: Supplies $ 820 Beginning retained earnings $ 20,000 Cash flow from investing act. (6,400 ) Cash flow from financing act. (5,300 ) Prepaid insurance 2,500 Rent expense 2,300 Service revenue 80,000 Dividends 5,200 Other operating expenses 43,000 Cash 11,900 Supplies expense 230 Accounts receivable 20,000 Insurance expense 1,000 Prepaid rent 4,800 Beginning common stock 1,000 Unearned revenue 6,400 Cash flow from operating...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT