Question
In: Accounting
On January 1, 2016, the following information was drawn from the accounting records of Carter Company:...
On January 1, 2016, the following information was drawn from the accounting records of Carter Company: cash of $350; land of $2,250; notes payable of $650; and common stock of $1,300.
a. As of January 1, 2016, what percent of the assets were
acquired from retained earnings? (Round your answer to 1
decimal place.)
b. Create an accounting equation using percentages instead of
dollar amounts on the right side of the equation. (Round
your percentage answers to 1 decimal place.)
c. During 2016, Carter Company earned cash revenue of $620, paid cash expenses of $360, and paid a cash dividend of $56. (Hint: It is helpful to record these events under an accounting equation before preparing the statements.) (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Account Titles for Retained Earnings".)
d. Prepare an income statement dated December 31, 2016.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2016, the following information was drawn from the accounting records of Carter Company:...
On January 1, 2016, the following information was drawn from the
accounting records of Carter Company: cash of $350; land of $2,250;
notes payable of $650; and common stock of $1,300.
Income statement dated December 31, 2016.
Revenue $620
Expenses -$360
Net Income $260
a. Prepare a statement of changes in stockholders’ equity dated
December 31, 2016.
b. Prepare a balance sheet dated December 31, 2016.
c. Prepare a statement of cash flows dated December 31, 2016.
(Amounts to be...
On January 1, 2018, the following information was drawn from the accounting records of Carter Company:...
On January 1, 2018, the following information was drawn from the
accounting records of Carter Company: cash of $225; land of $1,875;
notes payable of $525; and common stock of $945. Required a.
Determine the amount of retained earnings as of January 1, 2018. b.
After looking at the amount of retained earnings, the chief
executive officer (CEO) wants to pay a $325 cash dividend to the
stockholders. Can the company pay this dividend? c. As of January
1, 2018,...
On January 1, 2018, the following information was drawn from the accounting records of Carter Company:...
On January 1, 2018, the following information was drawn from the
accounting records of Carter Company: cash of $400; land of $2,400;
notes payable of $700; and common stock of $1,540.
Required
a. Determine the amount of retained earnings as
of January 1, 2018.
b. After looking at the amount of retained
earnings, the chief executive officer (CEO) wants to pay a $500
cash dividend to the stockholders. Can the company pay this
dividend?
c. As of January 1, 2018,...
On January 1, 2018, the following information was drawn from the accounting records of Carter Company:...
On January 1, 2018, the following information was drawn from the
accounting records of Carter Company: cash of $800; land of $3,500;
notes payable of $600; and common stock of $1,000.
Required
a. Determine the amount of retained earnings as
of January 1, 2018.
b. After looking at the amount of retained
earnings, the chief executive officer (CEO) wants to pay a $1,000
cash dividend to the stockholders. Can the company pay this
dividend?
c. As of January 1, 2018,...
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016: Accounts...
The following information is extracted from Shelton
Corporation’s accounting records at the beginning of 2016:
Accounts Receivable
$64,000
Allowance for Doubtful Accounts
1,100
(credit)
During 2016, sales on credit amounted to $568,000, $559,000 was
collected on outstanding receivables and $2,500 of receivables were
written off as uncollectible. On December 31, 2016, Shelton
estimates its bad debts to be 4% of the outstanding gross accounts
receivable balance.
Required:
1.
Prepare the journal entry necessary to record Shelton’s
estimate of bad debt...
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016: Accounts...
The following information is extracted from Shelton
Corporation’s accounting records at the beginning of 2016:
Accounts Receivable
$64,000
Allowance for Doubtful
Accounts
1,300
(credit)
During 2016, sales on credit amounted to $574,000, $551,800 was
collected on outstanding receivables and $3,200 of receivables were
written off as uncollectible. On December 31, 2016, Shelton
estimates its bad debts to be 4% of the outstanding gross accounts
receivable balance.
Required:
1.
Prepare the journal entry
necessary to record Shelton’s estimate of bad debt...
The accounting records of Wall's China Shop reflected the following balances as of January 1, 2016:...
The accounting records of Wall's
China Shop reflected the following balances as of January 1,
2016:
Cash
$19,100
Beginning
inventory
14,260
(155
units @ $92)
Common
stock
15,000
Retained
earnings
18,360
The following five transactions occurred in 2016:
1.
First purchase (cash) 120 units
@ $94
2.
Second purchase (cash) 205 units
@ $102
3.
Sales (all cash) 425 units @
$186
4.
Paid $15,100 cash for salaries
expenses.
5.
Paid cash for income tax at the
rate...
The following information was available from the January inventory records of Rich Company:
The following information was available from the January
inventory records of Rich Company:
Units Unit
Cost Total Cost
Balance at January
1
800
$10.00
$8,000
Purchases:
January
6
600
11.00
6,600
January
26
800 12.00 9,600
Rich maintains a perpetual inventory system and
costs inventory using last-in, first-out (LIFO). Sales included:
900 units on Jan 7, and 600 units on Jan 31. All units sold for $20
each. Operating expenses were $500 for the month of January. Assume
a 40%...
The following information was taken from Lamberson Company's accounting records: Account Balances Account Titles January 1,...
The following information was taken from Lamberson Company's
accounting records:
Account
Balances
Account
Titles
January 1,
2016
December 31,
2016
Debits
Cash
$ 1,400
$ 2,400
Accounts Receivable (net)
2,800
2,690
Marketable Securities (at cost)
1,700
3,000
Allowance for Change in Value
500
800
Inventories
8,100
7,910
Prepaid Items
1,300
1,710
Investments (long-term)
7,000
5,400
Land
15,000
15,000
Buildings and Equipment
32,000
46,200
Discount on Bonds Payable
—
290
$69,800
$85,400
Credits
Accumulated Depreciation
$16,000
$16,400
Accounts Payable
3,800
4,150...
The following information was taken from the accounting records of JBD Company as of December 31,...
The following information was taken from the accounting
records of JBD Company as of December 31, 2020:
Inventory ................. $17,000
Accounts Payable .......... $36,000
Common Stock .............. $78,000
Accounts Receivable ....... $11,000
Retained Earnings ......... $24,000 (at January 1, 2020)
Copyright ................. $20,000
Salaries Expense .......... $28,000
Supplies .................. $12,000
Mortgage payable .......... $80,000 (due March 1, 2040)
Land ...................... $93,000
Notes Payable ............. $17,000 (due November 1, 2022)
Trademark ................. $37,000
Sales Revenue ............. $97,000
Equipment ................. $85,000
Income...
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