Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.5E
Understand the components of retained earnings (LO2–2)
At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash, $11,000.
2. Provide services to customers on account, $8,500.
3. Provide services to customers in exchange for cash, $3,200.
4. Purchase equipment and pay cash, $7,600.
5. Pay rent for April, $1,100.
6. Pay employee salaries for April, $3,500.
7. Pay dividends to stockholders, $2,000.
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30.
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Students have asked these similar questions
Consider the following account balances of Evan McGruder, Incorporated, as of December 31, Year 3:
Accounts Payable
$ 113,420
Retained Earnings
$ 56,000
Equipment
422,900
Notes Payable, due Year 5
344,500
Common Stock
206,500
Accounts Receivable
203,800
Income Tax Payable
4,030
Cash
97,750
Required:Prepare a classified balance sheet at December 31, Year 3.
What are the steps to complete the T-account for each transaction while making use of the each account balance provided in the first table?
Problem#9. Required information
[The following information applies to the questions displayed below.]
At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share):
Cash
$
1,990
Accounts payable
$
300
Short-term investments
500
Unearned revenue
1,410
Accounts receivable
3,660
Salaries Payable
960
Supplies
240
Short-term note payable
870
Prepaid expenses
4,810
Common stock ($1 par value)
140
Office equipment
1,620
Additional paid-in capital
6,650
Accumulated depreciation-office equipment*
(390)
Retained earnings
2,100
*This account has a credit balance…
Required information
[The following information applies to the questions displayed below.]
Lawson Consulting had the following accounts and amounts on December 31.
Cash
Accounts receivable
Equipment
Accounts payable
Common stock
Dividends
6,200 Services revenue
8,200 Rent expense
4,530 Wages expense
21,170
$ 13,500
Use the above information to prepare a December statement of retained earnings for Lawson Consulting. The Retained
Earnings account balance at December 1 was $0. Hint. Net income for December is $5,400.
LAWSON CONSULTING
Statement of Retained Earnings
$
0
$ 3,200
17,100
3,700
8,000
0
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prepare a trial balance (LO26) Below are the...Ch. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - The Buckle, Inc. Financial Analysis Financial...Ch. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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