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Anni [7]
3 years ago
6

At the beginning of Year 1, a company reported a balance in common stock of $169,000 and a balance in retained earnings of $69,0

00. During the year, the company issued additional shares of stock for $59,000, earned net income of $49,000, and paid dividends of $11,900. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $ 54,500 Accounts payable $ 16,100 Supplies 12,800 Utilities payable 6,200 Prepaid rent 33,500 Salaries payable 5,400 Land 295,000 Notes payable 34,000 Required: Prepare a statement of stockholders’ equity. Prepare a balance sheet.

Business
1 answer:
elixir [45]3 years ago
7 0

Answer:

Explanation:

The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.  

And, the balance sheet comprises of the assets and liabilities. With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.

The preparation of the statement of stockholders’ equity and the balance sheet is presented in the spreadsheet. Kindly find the attachment below:

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The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:
Alinara [238K]

Answer:

Net income  = $725,625    

Earnings per share = $7.26 per share

Explanation:

The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.

The multiple-step income statement can be prepared as follows:

Rollins Inc.

multiple-step income statement

For the Year Ended December 31, 2021

<u>Details                                                      $                             $             </u>

Sales Revenue                                                               5,400,000

Cost of goods sold                                                    <u>   (3,950,000)   </u>

Gross profit                                                                     1,450,000

<u>Operating expenses:</u>

Selling expense                                 (350,000)

General and admin expense          <u>   (250,000)   </u>

Total operating expenses                                            <u>  (600,000)  </u>

Operating income                                                            850,000

<u>Interest revenue (expense):</u>

Interest revenue                                     37,500

Interest expense                                 <u>  (20,000) </u>

Total Interest revenue (expense)                                      17,500

<u>Other compreh. income (loss):</u>

Loss on sale of investments               (10,000)

Loss on debt investments                 (125,000)

Gain on projected ben. obligation   <u>  235,000 </u>

Total other compreh. income (loss)                             <u>   100,000  </u>

Income before tax                                                           967,500

Income taxes (w.1)                                                        <u>   (241,875)   </u>

Net income                                                                   <u>   725,625    </u>

Earnings per share (w.2)                                                      7.26

<u>Workings:</u>

w.1: Income taxes = Income before tax  * Effective tax rate = $967,500 * 25% = $241,875

w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26

7 0
3 years ago
Trevor’s peers were surprised when he received a promotion and suddenly became their supervisor. They thought he was rather unre
Illusion [34]

Answer: (D) Poor leader-member relations

Explanation:

 In the poor leader member relationship, the member of the group are poor and the leaders focus are mainly shift away from the task in type specific group. It raises the poor conflicts and behavior in the relations of the group members.

The contingency model is one of the important business contingency theory which focus on the leadership effectiveness in the specific organization. This theory is mainly developed by the Fred fiedler.

Therefore, Option (D) is correct.

3 0
3 years ago
Production efficiency is a situation in which the economy is getting all that it can from its resources and​ _____ produce mor
Dennis_Churaev [7]

Answer:

Cannot, Less

Explanation:

Production efficiency or productive efficiency is the efficient utilization of resources with view to achieving the lowest cost of production. Production efficiency is achieved when an economy is operating on her production possibility curve.

When an economy attained the level of Productive efficiency, it means it can no longer increase production of any commodity without a trade-off for other similar commodity.

4 0
3 years ago
Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer. The credit ca
zimovet [89]

Answer:

Account receivable balance = $1,100 - ($1,100* 5%)

Account receivable balance =$1,100 - $55

Account receivable balance = $1,045

Date    Account Title        Debit       Credit

           Cash Account      $1,045

                 To Accounts receivable  $1,045

7 0
3 years ago
A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as indicated below. Calc
maksim [4K]

Answer:

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

Explanation:

Giving the following information:

Project X t Cash Flows

0 -44,000

1 10,000

2 10,000

3 15,000

4 18,000

5 15,000

<u>The payback period is the time required to cover for the initial investment. We need to discount each cash flow using the following formula:</u>

PV= Cf/(1+i)^n

Year 1= 10,000/1.09= 9,174.31 - 44,000= -34,825.69

Year 2= 10,000/1.09^2= 8,416.80 - 34,825.69= -26,408.89

Year 3= 15,000/1.09^3= 11,582.75 - 26,408.89= 14,826.14

Year 4= 18,000/1.09^4= 12,751.65 - 14,826.14= - 2,074.49

Year 5= 15,000/1.09^5= 9,748.97 - 2,074.49= 7,674.48

<u>To be more accurate:</u>

(2,074.49/7,674.48)*365= 99

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

8 0
3 years ago
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