Question : 186. The total assets and total liabilities of Paul’s Pools, a : 1239233

 

186. The total assets and total liabilities of Paul’s Pools, a corporation, at the beginning and at the end of the current fiscal year are as follows: 

 

Jan. 1

Dec. 31

Total assets

$280,000

$475,000

Total liabilities

205,000

130,000

 

 

 

 

(a)

Determine the amount of net income earned during the year.  No capital stock was issued and no dividends were paid during the year.

(b)

Determine the amount of net income during the year.  The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above.  Dividends of $53,000 were paid in cash during the year.  No capital stock was issued.

(c)

Determine the amount of net income earned during the year.  The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above.  Capital stock of  $35,000 was issued for cash and no dividends were paid.

(d)

Determine the amount of net income earned during the year.  The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above.  Capital stock of  $12,000 was issued for cash and $1,500 of dividends were paid each month during the year.

 

 

 

 

 

 

 

 

187. Selected transaction data of a business for September are summarized below.  Determine the following amounts for September:  (a) total revenue, (b) total expenses, (c) net income. 

Service sales charged to customers on account during September

$33,000

Cash received from cash customers for services performed in September

28,000

Cash received from customers on account during September:

 

   Services performed and charged to customers prior to September

13,000

   Services performed and charged to customers during September

18,000

Expenses incurred prior to September and paid during September

6,500

Expenses incurred and paid in September

36,250

Expenses incurred in September but not paid in September

5,000

Expenses for supplies used and insurance (not included above) applicable to September

2,000

 

 

 

 

 

 

 

 

188. On March 1, 2014, Cook’s Catering Company Capital Stock balance was $30,000 and the balance of Retained Earnings was $120,000.  During March, dividends of $31,000 were declared and paid by the business.  Assets, liabilities, revenues, and expenses at March 31, 2014, were as follows: 

Accounts Payable

$  10,250

Accounts Receivable

45,950

Cash

23,840

Fees Earned

64,950

Insurance Expense

1,275

Land

85,400

Miscellaneous Expense

1,210

Prepaid Insurance

3,000

Rent Expense

9,000

Salary Expense

20,300

Supplies

900

Supplies Expense

525

Utilities Expense

2,800

 

 

Present, in good form, (a) an income statement for March, (b) a retained earnings statement for March, and (c) a balance sheet as of March 31.