Aqua Products offers water purifying solutions. At the end of the current period, the company reports the following amounts: Assets = $90,000; Liabilities = $40,000; Dividends = $3,000; Revenues = $20,000; Expenses = $12,000.Required:Calculate net income.Calculate stockholders equity at the end of the period.attached all questions kindly submit this homework with all answers thank you
Chapter 1 A Framework for Financial Accounting
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Exercise 1-4
Calculate net income and stockholders equity
Exercise 1-4
Exercise 1-5
Calculate net loss and stockholders equity
Exercise 1-5
Exercise 1-6
Prepare an income statement
Exercise 1-6
Exercise 1-7
Prepare a statement of stockholders equity
Exercise 1-7
Exercise 1-8
Prepare a balance sheet
Exercise 1-8
Exercise 1-9
Prepare a statement of cash flows
Exercise 1-9
Exercise 1-13
Compute missing amounts from financial statements
Exercise 1-13
Exercise 1-14
Calculate the balance of retained earnings
Exercise 1-14
Exercise 1-15
Calculate amounts related to the balance of retained earnings
Exercise 1-15
Exercise 1-16
Use the accounting equation to calculate amounts related to the
balance sheet
Exercise 1-16
Exercise 1-17
Calculate missing amounts related to the statement of cash flows
Exercise 1-17
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Exercise 1-4
Aqua Products offers water purifying solutions. At the end of the current period,
the company reports the following amounts: Assets = $90,000; Liabilities =
$40,000; Dividends = $3,000; Revenues = $20,000; Expenses = $12,000.
Required:
1. Calculate net income.
2. Calculate stockholders equity at the end of the period.
Calculate net income and stockholders equity
Exercise 1-5
Zeta Network facilitates e-commerce transactions for high traffic websites. At the
end of the current period, the company reports the following amounts: Assets =
$45,000; Liabilities = $34,000; Revenues = $17,000; Expenses = $23,000.
Required:
1. Calculate the net loss.
2. Calculate stockholders equity at the end of the period.
Calculate net loss and stockholders equity
Exercise 1-6
Below are the account balances for Vital Accounting Services at the end of
January.
Accounts
Cash
Accounts payable
Salaries expense
Retained earnings
Rent expense
Equipment
Service revenue
Common stock
Balances
$ 6,000
2,100
4,000
3,900
2,500
7,000
12,000
5,000
Required:
Use only the appropriate accounts to prepare an income statement.
Prepare an income statement
Exercise 1-7
At the beginning of the year (January 1), Messner Publishing has $25,000 of
common stock outstanding and retained earnings of $12,000. During the year,
Messner reports net income of $10,000 and pays dividends of $3,000. In
addition, Messner issues additional common stock for $15,000.
Required:
Prepare the statement of stockholders equity at the end of the year (December
31).
Prepare a statement of stockholders equity
Exercise 1-8
Dynamic Consultants has the following account balances at the end of the year.
Accounts
Land
Notes payable
Salaries expense
Common stock
Equipment
Service revenue
Accounts Payable
Cash
Retained earnings
Balances
$42,000
18,000
19,000
20,000
10,000
30,000
5,000
8,000
?
Required:
Use only the appropriate accounts to prepare a balance sheet
Prepare a balance sheet
Exercise 1-9
Lunar Optical has the following cash transactions for the period.
Accounts
Amounts
Cash received for sale of services to customers
$33,000
Cash paid for advertisement
(5,000)
Cash received from the sale of an unused warehouse
10,000
Cash paid to merchandise suppliers
(15,000)
Cash received from sale of products to customers
60,000
Cash paid to purchase factory equipment
(60,000)
Cash received from the bank for long-term loan
75,000
Cash paid for dividends to stockholders
(10,000)
Cash paid to workers
(30,000)
Required:
1. Calculate the ending balance of cash, assuming the balance of cash at the
beginning of the period is $12,000.
2. Prepare a statement of cash flows.
Prepare a statement of cash flows
Exercise 1-13
Each of the following independent situations represents amounts shown on the
four basic financial statements.
1. Revenues = $45,000; Expenses = $33,000; Net income = ____________.
2. Increase in stockholders equity = $30,000; Issuance of common stock =
$20,000; Net income = $17,000; Dividends = ____________.
3. Assets = $56,000; Stockholders equity = $33,000; Liabilities = ____________ .
4. Total change in cash = $40,000; Net operating cash flows = $52,000; Net
investing cash flows = ($21,000); Net financing cash flows = ____________ .
Required:
Fill in the missing blanks using your knowledge of amounts that appear on the
financial statements.
Compute missing amounts from financial statements
Exercise 1-14
During its first five years of operations, Cooper Corporation reports net
income and pays dividends as follows.
Year
Net Income
Dividends
1
$ 1,800
$ 600
2
2,300
600
3
3,400
1,500
4
4,300
800
5
5,100
1,300
Retained Earnings
Required:
Calculate the balance of retained earnings at the end of each year. Note that
retained earnings will always equal $0 at the beginning of year 1.
Calculate the balance of retained earnings
Exercise 1-15
Below is information related to retained earnings for five companies.
1. Standard Corporation reports an increase in retained earnings of $3 billion
and dividends of $1.2 billion. What is the amount of net income?
2. Lever Company reports an increase in retained earnings of $3.5 billion and
net income of $5 billion. What is the amount of dividends?
3. Spice Inc., reports an increase in retained earnings of $2 billion and net
income of $2 billion. What is the amount of dividends?
4. Pole Star reports beginning retained earnings of ?$2 billion, net loss of $1
billion, and $0 dividends. What is the amount of ending retained earnings?
5. Frank Corp. reports ending retained earnings of $2.5 billion, net income of $1
billion, and dividends of $0.3 billion. What is the amount of beginning
retained earnings?
Required:
Calculate the answer to each.
Calculate amounts related to the balance of retained earnings
Exercise 1-16
Below is balance sheet information for five companies.
1. Fisher Inc. reports total assets of $20 billion and total liabilities of $14 billion.
What is the amount of stockholders equity?
2. Travel Guide reports total liabilities of $200 million and stockholders equity
of $50 million. What is the amount of total assets?
3. Office Supply reports total assets of $4 billion and total stockholders equity
of $0.5 billion. What is the amount of total liabilities?
4. Windsor reports an increase in assets of $3 billion and an increase in liabilities
of $1 billion. What is the amount of the change in stockholders equity?
5. Krest reports a decrease in liabilities of $2 billion and an increase in
stockholders equity of $1 billion. What is the amount of the change in total
assets?
Required:
Calculate the answer to each.
Use the accounting equation to calculate amounts related to the balance sheet
Exercise 1-17
Below is cash flow information for five companies.
1. Venus Dredging reports operating cash flows of $5 billion, investing cash
flows of $1 billion, and financing cash flows of ?$6 billion. What is the
amount of the change in total cash?
2. Complete Foods reports operating cash flows of $0.5 billion, investing cash
flows of $0.75 billion, and a change in total cash of $1 billion. What is the
amount of cash flows from financing activities?
3. Money Mint reports operating cash flows of $4.5 billion, investing cash flows
of ?$1 billion, and financing cash flows of ?$3 billion. If the beginning cash
amount is $0.5 billion, what is the ending cash amount?
4. Petro Global reports operating cash flows of $4 billion, financing cash flows
of $3.1 billion, and a change in total cash of $6.5 billion. What is the amount
of cash flows from investing activities?
5. Network Partners reports investing cash flows of $1 billion, financing cash
flows of $0.5 billion, and a change in total cash of $3 billion. What is the
amount of cash flows from operating activities?
Required:
Calculate the answer to each.
Calculate missing amounts related to the statement of cash flows
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