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    Financial Statements: Balance Sheet Question

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    Usman Ayyub
    Here is the balance sheet of ABC Company after the October transactions: Assets Cash (7400 + 30,000 + 5500 - 4000) = 36,900 Accounts Receivable 1250 Building 45500 Furniture & Fixtures (20000 + 18000) = 38,000 Land 55000 Supplies (3440 + 1000) = 4440 Liabilities & Equity Accounts Payable (8500 - 8500) = 0 Notes Payable ? Capital Stock (50000 + 30,000) = 80,000 Retained Earnings (4090 + 5500 - 4000) = 5590 Total Assets = 136,890 Total Liabilities

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    Financial Statements: Balance Sheet Question

    Uploaded by

    Usman Ayyub
    159 views5 pages
    Here is the balance sheet of ABC Company after the October transactions: Assets Cash (7400 + 30,000 + 5500 - 4000) = 36,900 Accounts Receivable 1250 Building 45500 Furniture & Fixtures (20000 + 18000) = 38,000 Land 55000 Supplies (3440 + 1000) = 4440 Liabilities & Equity Accounts Payable (8500 - 8500) = 0 Notes Payable ? Capital Stock (50000 + 30,000) = 80,000 Retained Earnings (4090 + 5500 - 4000) = 5590 Total Assets = 136,890 Total Liabilities

    Original Title

    Lecture 2

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    Here is the balance sheet of ABC Company after the October transactions: Assets Cash (7400 + 30,000 + 5500 - 4000) = 36,900 Accounts Receivable 1250 Building 45500 Furniture & Fixtures (20000 + 18000) = 38,000 Land 55000 Supplies (3440 + 1000) = 4440 Liabilities & Equity Accounts Payable (8500 - 8500) = 0 Notes Payable ? Capital Stock (50000 + 30,000) = 80,000 Retained Earnings (4090 + 5500 - 4000) = 5590 Total Assets = 136,890 Total Liabilities

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    159 views5 pages

    Financial Statements: Balance Sheet Question

    Uploaded by

    Usman Ayyub
    Here is the balance sheet of ABC Company after the October transactions: Assets Cash (7400 + 30,000 + 5500 - 4000) = 36,900 Accounts Receivable 1250 Building 45500 Furniture & Fixtures (20000 + 18000) = 38,000 Land 55000 Supplies (3440 + 1000) = 4440 Liabilities & Equity Accounts Payable (8500 - 8500) = 0 Notes Payable ? Capital Stock (50000 + 30,000) = 80,000 Retained Earnings (4090 + 5500 - 4000) = 5590 Total Assets = 136,890 Total Liabilities

    Copyright:

    © All Rights Reserved
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    Financial Statements

    Balance Sheet Question


    Bryan started a company on 20 Jan with an investment of $80,000. On Jan
    21, the company purchased a land for $52,000 Cash. On 22 Jan, the company
    made a contract to rent a warehouse for $36,000. $6,000 of which were paid
    in advance in cash while 30,000 were due on a later date. On Jan 23, the
    company purchased equipment worth 13,800 on credit. When equipment
    was delivered, the manager found that it was more than needed, therefore,
    he sold extra equipment to a buyer for $1800 who has to make the payment
    within 45 days. On 27 Jan, the company paid $6800 to the seller of
    equipment. In the last week of January, company provided services to a
    customer and received $2,200 for their services in cash. When the month
    ended, the company had to pay Utilities of 200 and salaries worth 1400 to its
    employees out of its earnings.
    Financial Statements
    Balance Sheet Question
    Hadi Production decided to open a computer programming company namely
    Softbyte. They invested $15,000. Softbyte purchased computer equipment
    for $7,000 on credit. Then Softbyte received $1,200 cash for programming
    services provided to a customer. Later on, a bill of $250 was received for
    advertising in a newspaper, which is due on a later date. Softbyte provided
    services worth 3,500 for another customer, cash of 1,500 is received and the
    remaining is billed to customer on account.
    At the end of month, Softbyte had to pay $600 for rent, $900 for employee
    salaries and $200 for utilities. Soon after, the due advertisement bill was
    cleared. Then the sum of 600 in cash is received from the customer. In the
    end, the company pays a dividend of 1,300 in cash to Hadi.
    Income Statement
    ABC Company
    Income Statement
    For the Period Dec 1-31, 2018
    Sales Revenue XXXXXX
    - Direct/Manufacturing Exp. (XXXXX)
    Gross Income XXXXXX
    - Operating Expense (Admin, Selling, Mktg) (XXXXX)
    Operating Income XXXXXX
    - Interest Expense (Financial Cost) (XXXXX)
    Earning Before Tax XXXXXX
    - Tax (XXXXX)
    Net Profit XXXXXXX
    A Income Statement
    S
    S
    I
    G
    N
    M
    E
    N
    T
    The balance sheet of ABC Company is as following on 31 September.
    Accounts Payable 8500 - Furniture & Fixtures 20000
    Accounts Receivables 1250 - Land 55000
    Building 45500 - Notes Payable ?
    Capital Stock 50000 - Retained Earnings 4090
    Cash 7400 - Supplies 3440
    Transactions occurring in October were:
    1. Additional Capital Stock was sold for 30,000. Accounts payable were paid in full (No
    payment was made on the notes payable)
    2. Furniture was purchased on account costing 18000. Supplies were purchased for 1000
    from a company that was going out of business. These supplies would have cost 1875
    if purchased under normal circumstances.
    3. Revenues of 5500 were earned and received in cash. Expanses required to earn the
    revenues of 4000 were incurred and paid in cash.

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