accounting home work... Need to be done ASAP!!
aliestic
spreadsheet__1.xlsmProblem 1-67B Solution
| Financial Accounting | |||||||||
| Problem 1-67B, Obj. 4, 5 | Students: Please fill-in areas that are shaded. | ||||||||
| Construct and analyze an income statement, a statement of retained earnings, and a balance sheet; evaluate business operations | |||||||||
| Student Name | |||||||||
| Course Name | |||||||||
| Student ID: | |||||||||
| Date: | |||||||||
| The assets and liabilities of Blue Moon Products, Inc. as of December 31, 2016, and revenues and expenses for the year ended on that date follow: | |||||||||
| Land................................ | $ 28,000 | Equipment....................... | $ 111,000 | ||||||
| Note payable................... | 99,700 | Interest expense............... | 10,800 | ||||||
| Property tax expense ...... | 7,900 | Interest payable ............... | 2,300 | ||||||
| Rent expense................... | 40,200 | Accounts payable ............ | 27,000 | ||||||
| Accounts receivable........ | 84,500 | Salary expense................ | 108,300 | ||||||
| Service revenue............... | 458,600 | Building.......................... | 402,000 | ||||||
| Supplies.......................... | 6,100 | Cash................................ | 41,000 | ||||||
| Utilities expense............. | 8,100 | Common stock................ | 3,800 | ||||||
| Beginning retained earnings was $364,500, and dividends totaled $108,000 for the year. | |||||||||
| Test Your Knowledge | |||||||||
| Problem 1-67B | |||||||||
| Instructions | |||||||||
| 1. | Prepare the income statement of Blue Moon Products, Inc., for the year ended December 31, 2016. | ||||||||
| 2. | Prepare the company’s statement of retained earnings for the year. | ||||||||
| 3. | Prepare the company’s balance sheet at December 31, 2016. | ||||||||
| 4. | Analyze Blue Moon Products, Inc., by answering these questions: | ||||||||
| a. Was Blue Moon profitable during 2016? By how much? | |||||||||
| b. Did retained earnings increase or decrease? By how much? | |||||||||
| c. Which is greater, total liabilities or total equity? Who owns more of Blue Moon Product’s assets, creditors of the company or Blue Moons Product’s stockholders? | |||||||||
| Requirement 1 | |||||||||
| Blue Moon Products, Inc. | |||||||||
| Income Statement | |||||||||
| Year Ended December 31, 2016 | |||||||||
| Revenue | |||||||||
| Service revenue…………………………………………………… | $ 458,600 | ||||||||
| Expenses | |||||||||
| Salary expense……………………………………………………. | $ 108,300 | ||||||||
| CELL REF | |||||||||
| Total expenses…………………………………………………… | FORMULA | ||||||||
| Net income……………………………………………………………………… | |||||||||
| Problem 1-66B | |||||||||
| Requirement 2 | |||||||||
| Blue Moon Products, Inc. | |||||||||
| Statement of Retained Earnings | |||||||||
| Year Ended December 31, 2016 | |||||||||
| Retained earnings, beginning of year…………………………………………….. | $ 364,500 | ||||||||
| Add: Net income for the year | |||||||||
| 364,500 | |||||||||
| Less: Dividends……………………………………………………………………………….. | |||||||||
| Retained earnings, end of year………………………………………………………. | |||||||||
| Requirement 3 | |||||||||
| Blue Moon Products, Inc. | |||||||||
| Balance Sheet | |||||||||
| Year Ended December 31, 2016 | |||||||||
| ASSETS | LIABILITIES | ||||||||
| Cash | $ 41,000 | Accounts payable | $ 27,000 | ||||||
| Accounts receivable | |||||||||
| Total liabilities | |||||||||
| Land | STOCKHOLDERS' EQUITY | ||||||||
| Common stock | $ 3,800 | ||||||||
| Total stockholders' equity | |||||||||
| Total liabilities and | |||||||||
| Total assets | FORMULA | stockholders' equity | FORMULA | ||||||
| Requirement 4 | |||||||||
| a | Part a | ||||||||
| b | Part b | ||||||||
| c | Part c | ||||||||
Solution
BU 122 ID 5003
