Author: Anonymous

A summary of cash flows for Evelyn’s Event Planning for the year ended December 31 follows: Cash receipts:        Cash received from customers $57,360      Cash received from bank loan 15,000 ​ Cash payments:        Cash paid for operating expenses $12,120      Cash paid for equipment 18,070      Cash paid for party supplies 9,480      Dividends 12,000     Cash balance as of January 1 $15,580 ​ Prepare a statement of cash flows for Evelyn’s Event Planning for the year ended December 31.

Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contributed $6,000, in her name, to the American Red Cross. The contribution of the $6,000 should be recorded on the accounting records of which of the following entities?

Name and describe the four primary financial statements for a corporation.

Which of the following statements regarding the ratio of liabilities to stockholders’ equity is not true? 

Transactions affecting stockholders’ equity include

On March 1, the amount of common stock and retained earnings in Richard’s Catering Company was $100,000 and $50,000, respectively. During March, stockholders were paid $31,000 in dividends from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows: Accounts payable $10,250 Accounts receivable 45,950 Cash 23,840 Fees earned 64,950 Insurance expense 1,275 Land 88,400 Miscellaneous expense 1,210 Rent expense 9,000 Salary expense 20,300 Supplies 900 Supplies expense 525 Utilities expense 2,800 ​ Prepare (a) an income statement for March, (b) a statement of stockholders’ equity for March, and (c) a balance sheet as of March 31.

Using the following accounts and their amounts, prepare an income statement for Bright Futures Company for the month ended August 31. ​ Telephone Expense $  1,150 Cash 3,000 Accounts Payable 1,540 Dividends 800 Fees Earned 15,700 Rent Expense 1,400 Supplies 140 Accounts Receivable 1,500 Computer Equipment 17,600 Common Stock 10,000 Retained Earnings (August 1) 4,320 Wages Expense 4,800 Utilities Expense 750 Office Expense 420 ​

At December 31 of the current year, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following: ​ (a) Stockholders’ equity as of December 31. (b) Stockholders’ equity as of December 31 of the next year, assuming that assets increased by $12,000     and liabilities increased by $15,000. (c) Stockholders’ equity as of December 31 of the next year, assuming that assets decreased by $8,000     and liabilities increased by $14,000.

The using up of supplies on hand has what effect on the accounting equation?

Donner Company is selling a piece of land adjacent to its business. An appraisal reported the market value of the land to be $120,000. Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost principle, what amount will be used to record this transaction in the accounting records?