Assignment
Exercise #1
Jason Bear, an Outdoor Outfitter, has compiled the following financial information as of December 31, 2016.
Revenues during 2016-camping fees $140,000 Notes payable $60,000
Revenues during 2016-general store 47,000 Expenses during 2016 150,000
Accounts payable 11,000 Supplies on hand 2,500
Cash on hand 20,000 Common stock 20,000
Original cost of equipment 105,500 Retained earnings ?
Fair value of equipment 140,000
Instructions
Determine Bear Park's net income for 2016.
Prepare a balance sheet for Bear Park as of December 31, 2016.
Exercise 2
Selected transactions for Lauren Rountree Company during its first month in business are presented below.
Sept. 1 Invested $10,000 cash in the business in exchange for common stock.
5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.
25 Paid $2,400 cash on balance owed for equipment.
30 Declared and paid a $500 cash dividend.
Campbell's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock; No. 332 Dividends.
(a) Journalize the transactions of the general journal. (Omit explanations.)
(b) Post the transactions using the standard t-account form.
Sept. 1 Invested $10,000 cash in the business in exchange for common stock.
Date Account Title Post Ref Debit Credit
Exercise #3 Determine the missing amounts. Show calculations
Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2014, Mark Inc and Paul Enterprises.
Mark Inc Paul Enterprises
Beginning of year:
Total assets $97,000 $129,000
Total liabilities 85,000 (c)
Total stockholders' equity (a) 75,000
End of year:
Total assets 160,000 180,000
Total liabilities 120,000 50,000
Total stockholders' equity 40000 130,000
Changes during year in stockholders' equity:
Additional investment (b) 25000
Dividends 24,000 (d)
Total revenues 215,000 100,000
Total expenses 175,000 55000
Beginning Stockholder Equity+Revenues+Additional Investment-Expenses-Dividends=Ending Stockholder Equity
Presented below is financial information related to the 2016 operations of Brian Baik Company.
Maintenance and repairs expense $97,000
Utilities expense 10,000
Salaries and wages expense 142,000
Advertising expense 3,500
Ticket revenue 335,000
Instructions
Prepare the 2016 income statement for Brian Baick Company.