Question
In: Accounting
The assets and liabilities of Hercules Inc. as of December 31,2019, and revenues and expenses for...
The assets and liabilities of Hercules Inc. as of December 31,2019, and revenues and expenses for the year ended on that date follow: Land $98,000 Property tax expense $5,000 Note payable (due 2025) 95,000 Accounts receivable 25,000 Accounts payable 21,000 Advertising expense 10,000 Rent expense 3,000 Building 140,000 Cash 10,000 Salary expense 85,000 Common shares 75,000 Salary payable 12,000 Furniture 20,000 Service revenue 200,000 Interest expense 4,000 Supplies 3,000 Beginning retained earnings were $50,000, and dividends totalled $50,000 for the year.
1. Prepare in good form a statement of earnings (income statement) of Hercules Inc. for the year ended December 31, 2019.
2. Prepare in good form a statement of retained earnings of Hercules Inc. for the year ended December 31, 2019.
3. Calculate the following for Hercules at December 31, 2019 -
: Current Assets :____________________________________________________________ Total Assets:________________________________________________________________ Total Liabilities::_____________________________________________________________ Total Shareholders’ equity:___________________________________________________ 4. Analyze Hercules Inc. by answering these questions
a. Was Hercules Inc. profitable during 2019? By how much?
b. Who owns more of Hercules Inc.’s assets, the creditors or the shareholders? Why?
Solutions
Expert Solution
Requirement 1:
| Hercules Inc. | ||
| Income statement | ||
| For the Year Ended December 31, 2019 | ||
| Revenue | ||
| Service revenue | $ 200,000 | |
| Total Revenue (A) | $ 200,000 | |
| Expenses: | ||
| Rent expense | $ 3,000 | |
| Interest expense | $ 4,000 | |
| Property tax expense | $ 5,000 | |
| Advertising expense | $ 10,000 | |
| Salary expense | $ 85,000 | |
| Total Expense (B) | $ 107,000 | |
| Net Income (A-B) | $ 93,000 | |
Requirement 2:
| Hercules Inc. | |
| Retained Earnings Statement | |
| For the Year Ended December 31, 2019 | |
| Beginning Balance | $ 50,000 |
| Add :Net Income/(loss) | $ 93,000 |
| Less: | |
| Dividends | $ (50,000) |
| Retained Earnings Closing Balance | $ 93,000 |
Requirement 3:
| Current assets | $ 38,000 | 10000+25000+3000 |
| Total assets | $ 296,000 | 38000+98000+20000+140000 |
| Total liabilities | $ 128,000 | 95000+21000+12000 |
| Total shareholders' equity | $ 168,000 | 75000+93000 |
Requirement 4:
a. Yes , Hercules. Inc was profitable and the the profit is $ 93,000
b. Most of the Hercules Inc 's assets are owned by the creditors, Because most of assets consists of assets which are bought on account .
ekkarill92 answered 1 year agoRelated Solutions
The assets and liabilities of Julius corp as of December 31,2019, and revenues and expenses for...
The assets and liabilities of Julius corp as of December
31,2019, and revenues and expenses for the year ended on that date
follow:
Land $98,000
Property tax expense $5,000
Note payable (due 2025) 95,000
Accounts receivable 25,000
Accounts payable 21,000
Advertising expense 10,000
Rent expense 3,000
Building 140,000
Cash 10,000
Salary expense 85,000
Common shares 75,000
Salary payable 12,000
Furniture 20,000
Service revenue 200,000
Interest expense 4,000
Supplies 3,000
Beginning retained earnings were $50,000, and dividends totalled
$50,000 for the...
David Bash's Landscaping Company has the following list of assets, liabilities, revenues and expenses on December...
David Bash's Landscaping Company has the following list of
assets, liabilities, revenues and expenses on December 31, 2016,
which is the end of its first year of operations:
Common stock $40,400
Accounts payable 5,000
Salary expense 15,000
Repairs expense 2,200
Dividends 10,000
Truck 24,000
Equipment 22,200
Notes payable 12,800
Cash 60,400
Supplies expense 5,400
Service revenue 77,200
Gasoline expense 2,200
The stockholders' equity for David Bash's Landscaping on
December 31, 2016 is:
A.
$106,400
B....
Compare the process of budgeting revenues and expenses with the process of budgeting assets, liabilities, and...
Compare the process of budgeting revenues and expenses with the
process of budgeting assets, liabilities, and owners’ equity, and
explain how this information is included in the QuickBooks
Accountant budgeting process. Why is budgeting an essential
practice for all organizations? What benefits does budgeting
present to the organization, and what happens if an organization
chooses to not budget?
Falcon Consultants, Inc., has provided the following list of assets, liabilities, revenues, and expenses from its...
Falcon Consultants, Inc., has provided
the following list of assets, liabilities, revenues, and expenses
from its December 31, 2017, accounting records. The beginning
retained earnings as of January 1, 2017, was $45,000 and the owner,
Lucky Falcon, received dividends of $14,000 during the year.
Required:
Prepare the income statement, the
statement of retained earnings and the balance sheet for Falcon
Consultants, Inc., as of December 31, 2017.
Accounts receivable
$16,300
Service
revenue
$67,500
Interest
expense
2,800
Cash ...
Falcon Consultants, Inc., has provided the following list of assets, liabilities, revenues, and expenses from its...
Falcon Consultants, Inc., has provided
the following list of assets, liabilities, revenues, and expenses
from its December 31, 2017, accounting records. The beginning
retained earnings as of January 1, 2017, was $45,000 and the owner,
Lucky Falcon, received dividends of $14,000 during the year.
Required:
Prepare the income statement, the
statement of retained earnings and the balance sheet for Falcon
Consultants, Inc., as of December 31, 2017.
Accounts receivable
$16,300
Service
revenue
$67,500
Interest
expense
2,800
Cash ...
Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses.
Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Required:For each transaction, indicate whether the related account would be classified in the balancesheet as(a) An asset,(b) A liability,(c) Stockholders’ equity; in the income statement as(d) A revenue or(e) An expense; or in the statement of stockholders’ equity as(f) A dividend.
The revenues and expenses of sentinel travel service for the year ended august 31,2019 follows
The revenues and expenses of sentinel travel service for the year ended august 31,2019 followsParticularsAmount$Fees earned7,50,000Office expense2,95,000Miscellaneous expense12,000Wages expense4,50,000Prepare an income statement for the year ended august 31,2019
Mustang Motors. has the following assets, liabilities, revenues and expenses for the current year. The accounts...
Mustang Motors. has the following assets, liabilities, revenues
and expenses for the current year. The accounts are listed below in
alphabetical order. The company has a December 31st year
end.
Accounts receivable
$27,000
Office equipment
$59,500
Accounts payable
38,500
Office supplies
5,000
Building
45,000
Service revenue
102,000
Cash
60,000
Supplies expense
8,000
Commission expense
24,500
Utilities expense
18,500
Common stock
42,500
Wage expense
65,500
Interest payable
10,800
Deferred revenue
8,200
Land
40,000
Beginning retained earnings was $154,000 and dividends were...
Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018...
Labels: Current assets Current liabilities December 31,
2018 Expenses For the Year Ended December 31, 2018 Property, plant,
and equipment Revenues Amount Descriptions: Book
value-building Book value-equipment Change in retained earnings Net
income Net loss Retained earnings, December 31, 2018 Retained
earnings, January 1, 2018 Total assets Total current assets Total
expenses Total liabilities Total liabilities and stockholders’
equity Total property, plant, and equipment Total revenues Total
stockholders’ equity
CHART OF ACCOUNTS
Lamp Light Company
General Ledger
ASSETS
11
Cash...
Presented below are the amounts of assets and liabilities of BPA, Inc. as of December 31,...
Presented below are the amounts of
assets and liabilities of BPA, Inc. as of December 31, 2017, and
revenues and expenses of the company for the year ended on that
date.
Sales
$ 18,000,000
Cost of Goods Sold
$ 13,500,000
Wages Expense
$ 2,700,000
Common Stock
$ 2,250,000
Cash
$ 2,059,650
Building
$ 1,350,000
Mortgage Payable - Long Term
$ 1,012,500
Notes Payable - Long Term
$
675,000
Marketing Expense
$
607,500
Accounts Receivable
$
517,500
Equipment
$
450,000
Accounts...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Merger Analysis TransWorld Communications Inc., a large telecommunications company, is evaluating the possible acquisition of Georgia...
- Journal Entries and Trial Balance Elite Realty acts as an agent in buying, selling, renting, and...
- In racket Assume that the elements of a list are indexed starting with 1. Write a...
- Describe System Development Life Cycle (SDLC) and how it is used.
- What symbolism do you find in the play,Oedipus?
- • Using the Scanner class to obtain input from the user. • Using printf to output...
- In each of the following situations, develop a tentative plan for the client. List the various...
ADVERTISEMENT