Aloha Company reports the following information at December 31, 2017: Show a. $45,000 The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and
administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2017. The
following transactions occurred during March, the first month of operations for Canyon Products, Inc.: a. $810,000 Guinther & Sons, Inc., a retailer of men's clothing, earned a net profit of $77,000 for 2017. The balance sheet for Guinther & Sons includes the following items: a. 2.58 to 1 On January 1, 2017, A-Best Company's balance in retained earnings was $80,000. At the end of the year, December 31, 2017, the balance in retained earnings was $94,000. During 2017, the company earned net income of $40,000. How much were dividends? a. $24,000 Remaz Corp. purchased equipment at a cost of $220,000 in January, 2016. As of January 1, 2017, depreciation of $160,000 had been recorded on this asset. Depreciation expense for 2017 is $50,000. After the adjustments are recorded and posted at December 31, 2017, what are the balances for Equipment and Accumulated Depreciation? Lawton Corporation's end-of-year balance sheet consisted of the following amounts: a. $100,000 The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000
shares of stock outstanding at December 31, 2017. a. $92,190 Mobile Power Corp. reported the following information for the year ended December 31, 2017. a. $165,000 Leary Corporation's end-of-year balance sheet consisted of the following amounts: a. $66,000 c. $3,000 Assets: $25,000 + $69,000 + $46,000 + $33,000 = $173,000 Charlie Company had $1,800 of supplies on hand at January 1. During the year, supplies with a cost of
$4,000 were purchased. At December 31, the actual supplies on hand amount to $1,300. After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts. a. $5,300, $5,800 The balance sheet of Jobston Inc. includes the following
items: a. $58,440 d. $9,740 Rationale: Working Capital = Current Assets - Current Liabilities = ($22,400 + $11,700 + $23,300 + $1,040) - ($47,500 + $1,200) = $58,440 - $48,700 = $9,740 Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year. a. $340,000 Bevco Company has provided the following information from its accounting records for the current year: George's Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: a. . $187,000 The data below are for Music Corporation for 2017. a. $8,900 Blanton Company bought equipment on January 1, 2013, with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years. It was depreciated by the straight-line method for four years. Due to obsolescence, it was determined at the beginning of 2017 that the useful life should be shortened by three years and the residual value changed to zero. What is the accumulated depreciation at the end of 2016? a. $42,667 A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $3,600; Transportation-In, $650; Purchases, $10,700; Purchase Returns and Allowances, $1,950; Purchase Discounts, $330. The cost of goods purchased is equal to a. $17,230. George's Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are
listed below: a. $ 84,000
Royal Company purchased a dump truck at the beginning of 2015 at a cost of $60,000. The truck had an estimated life of six years and an estimated residual value of $24,000. On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life one year. Thus, starting with 2017, the truck has a remaining life of five years and a new salvage value of $8,000. Royal uses the straight-line depreciation method. What is the book value of the truck to be reported on the balance sheet at December 31, 2017? a. $44,000 b. $56,000 Rationale: [($60,000 - $24,000)/6] × 2 = $12,000 The data presented below are for Falconi, Inc. for 2017. a. $375,000 Darrin Brown bought a pub. The purchase price was $695,000. An appraiser provided the following appraisal values: land, $320,000; building, $370,000; and equipment, $60,000. What cost should be allocated to the building? a. $399,281 Does every accounting transaction affect the income statement?As shown above, some transactions will affect two balance sheet accounts (and no income statement). Entries to reclassify an expense (or revenue) will affect two income statement accounts.
Does every transaction affect both sides of the accounting equation?Assets = Liabilities + Shareholder's Equity
Double-entry accounting is a method of accounting that means each transaction affects both sides of the accounting equation. For every change there is in an asset account; there has to be an equal change to a related liability or shareholder equity account.
What affects balance sheet and income statement?In essence, increases in revenue and gains as reported on the income statement cause stockholders' equity to increase on the balance sheet. In addition, increases in expenses and losses as reported on the income statement cause stockholders' equity to decrease on the income statement.
Does every transaction affect two accounts?If a business buys raw material by paying cash, it will lead to an increase in the inventory (asset) while reducing cash capital (another asset). Because there are two or more accounts affected by every transaction carried out by a company, the accounting system is referred to as double-entry accounting.
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Does every accounting transaction affects both the balance sheet and the income statement?
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