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LaJuana · Sep 17, 2011, 04:37 PM

The net income of Reliable Provision company decreased sharply during 2007. Clay Rollins, owner of the store, anticipates the need for a bank loan in 2008. Late in 2007, he instructed the accountant to record a $70,000 sale of recreational gear to the Smith family, even though the goods will not be shipped from the manufacturer until January 2008. Rollins told the accountant not to make the following adjusting entries:

Salary owed to employees: $1,000

Expired prepaid insurance: $500

Is income overstated or understated? Why did Rollins take these actions? Are they ethical? Give reasons for your answer. As a friend, what advice would you give the accountant?

LaJuana · Sep 17, 2011, 04:46 PM

On December 31, 2008, Tie one On reported net income for the year of $265000 and the following account balance?
On December 31, 2008, Tie one On reported net income for the year of $265000 and the following account balances: Cash $175000, Accounts receivable $21000, Prepaid rent $6000, Equipment and Furnishing $230000, Accumulated depreciation-Equipment and Furnishing ($43000), Accounts payable $39000, Wages payable $13000, Owners Equity (including net income of $265000) $337000.
After this information was prepaid, the bookkeeper discovered that they failed to prepare two adjusting entries. These were not reflected in the balance shown. Here is the information on these two entries (1) The prepaid rent account was paid on April, 2008, for one year for $6000. The account has been adjusted since. (2) A bill received in January for utilities incurred in December 2008 for $1400 was mistakenly not entered into system
Please calculate the year end corrected balances for the following three accounts. Assets, liabilities, and equity. You can enter your answer in the following format for each category.
Assets= $X (Show your work in parentheses numbers only) no title necessary
Liabilities = $X (Show your work in parentheses numbers only) no title necessary
Equity = $X (Show your work in parentheses numbers only) no title necessary
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Answers (1)
by JKRB
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1) The prepaid rent account was paid on April, 2008, for one year for $6000. The account has been adjusted since.
6,000 x 8/12 = 4,000 adustment
Dr Rent Expense 4,000 (decrease equity)

pready · Sep 17, 2011, 04:46 PM

Both entries are for expenses, so expenses are understated.

Now you should have an idea of whether net income is overstated or understated.

The actions are not ethical.

pready · Sep 17, 2011, 04:49 PM

What is your question and what have you attempted.

LaJuana · Sep 17, 2011, 06:49 PM

Identify three questions that can be answered by reviewing a firm's income statement but that cannot be answered by reviewing the firm's balance sheet or statement of stockholders' equity. Be specific.

LaJuana · Sep 17, 2011, 08:37 PM

S&R Rental rental rents and service different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period below
Average shares outstanding $15000
Cost of goods sold $44000
Debit outstanding $90000
General and administrative expenses $12500
Income tax expense $5300
Interest expense $8800
Payment to owners $20000
Rental revenue $41000
Sales revenue $28700
Selling expense $5150
Service revenue $23900
Please calculate and enter your answer for the following totals. You should show your calculations
A. Gross profit
B. Operating expense
C. Operating expense
D. Pretax income
E. Net income
F. Earning per share

LaJuana · Sep 17, 2011, 08:38 PM

Listed below are selected account balances for Bushing Company for June30:
Accounts payable
Accounts receivable
Accumulated depreciation
Buildings
Cash
Contributed capital
Cost of goods sold
Equipment
Interest payable
Land
Merchandise inventory
Notes payable, long term
Prepaid insurance
Retained earnings
Supplies on hand
Trademarks
Wages payable
Please calculate and enter your answers for the following totals you should show your calculations:
A. Current assets
B. Current liabilities
C. Property, plant, and equipment
D. Total assets
E. Long-term liabilities
F. Total liabilites
G. Total stockholders' equity
H. Total liabilities and stockholders' equity

LaJuana · Sep 17, 2011, 08:39 PM

Strated Inc. Reported the following selected information for its 2008 year:
Contributed capital at December 31, 2007
Retained earnings at December 31, 2007
Common stock issued in 2008
Prepare a statedment of stockholders' equity for stratfield Inc. For the year ended December 31, 2008. Left align everything so that the formatting can be retained.

LaJuana · Sep 17, 2011, 08:40 PM

A list of financial statement items is given below:
A. Accounts receivable
B. Rent payable
C. Retained Earnings
D. Cost of sales
E. Prepaid rent
F. Supplies expense
G. Equipment
H. Dividends
I. Depreciation expense
J. Copyright
K. Accrued liabilities
L. Wage payable
M. Land
N. Notes payable
O. Service revenue
P. Inventory
Q. Advertising expense
R. Common stock
S. Cash
T. Gross profit
Identify which of the statement each of these accounts belong on by using the following codes I=income statement, B= balance sheet, SE= statement of stockholders' equity. Two of the accounts will have more than one statement on which they will actually appear. You should just enter the lettered items( such as a, b, and c etc.) and the answer (B, I, or SE) into the answer.

taxesforaliens · Sep 17, 2011, 09:44 PM

It's nice that you copied all your homework questions. But did you read the sticky note first? Could have saved you some time.

We won't do your homework questions for you.
You were given the assignment for you to learn.
There are plenty of resources on the web for you to research this.

If you come up with your own answer and post it for us to critique that is within reason.
If you have some SPECIFIC questions that you couldn't find or didn't understand, we may help with that.
But this is your assignment, show us you have at least attempted to complete it on your own.
Thank you.

CliffARobinson · Sep 17, 2011, 11:34 PM

Please do the first pass and we will help where needed.

LaJuana · Sep 18, 2011, 06:20 AM

Stratfield Inc. Reported the following selected information for its 2008 year
Contributed capital at December 31, 2007 $16500
Retained earnings at December 31, 2007 $11300
Dividends $3000
Net income $12980
Common stock issued in 2008 $4000
Prepare a statedment of stockholders' equity for stratfield Inc. For the year ended December 31, 2008. Left align everything so that the formatting can be retained.

pready · Sep 18, 2011, 07:45 AM

LaJuana did you read the guidelines for posting homework? I think not!!

You need to prepare a statement of Stockholders Equity. If you do not know how to do this I suggest you look in your accounting textbook for examples of what a Statement of Stockholders equity looks like.

Also you sholud not be giving out reddies because you do not know how to follow this site's rules regarding homework. Also you do not even know how to post a proper question!!

LaJuana · Sep 18, 2011, 09:09 AM

S&R Rental rental rents and service different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period below:
Average shares outstanding $15000
Cost of goods sold $44000
Debit outstanding $90000
General and administrative expenses $12500
Income tax expense $5300
Interest expense $8800
Payment to owners $20000
Rental revenue $41000
Sales revenue $28700
Selling expense $5150
Service revenue $23900
Please calculate and enter your answer for the following totals. You should show your calculations
A. Gross profit
B. Operating expense
C. Operating expense
D. Pretax income
E. Net income
F. Earning per share

Curlyben · Sep 18, 2011, 09:13 AM

>Multiple Threads Merged<

Please show us that you have even attempted these questions, rather than simply copy & pasting your homework to the site..

LaJuana · Sep 18, 2011, 09:15 AM

Perhaps if you were not being so smart you could possibly help me instead of being a smarty! I thouht you were here to assist people like me instead of being rude!

Curlyben · Sep 18, 2011, 09:22 AM

We are more than happy to ASSIST you with this work, but as we have no idea what you are having an issue with we can't offer any meaningful help.

So, as I said earlier, please show us what you have done, rather that simply C&Ping the questions with no effort..

Fr_Chuck · Sep 18, 2011, 09:46 AM

I am sorry, it is you that is being rude, that is not allowed here on this site. I will be forced to delete or close your thread if you do not wish to follow site rules.

First you have been told several times, that we do not "DO" you home work for you, but if you will show up or tell us what you think and what you would do first, we can offer advice on how you can do things or what you should consider.

Also your report of the thread has been ignored since you merely reported an expert who was trying to tell you the rules

pready · Sep 18, 2011, 10:57 AM

Gross Profit is revenues minus Cost of Sales(COGS).

Operating expenses are your expenses except for income taxes.

Pretax income is revenues minus expenses other than your income tax expense. Also known as EBIT (Earnings before Income Taxes)

Net income is EBIT minus income tax.

Earnings per Share (EPS) is Net Income divided by average Shares Outstanding.

LaJuana · Sep 18, 2011, 11:36 AM

(a) Gross profits:
$28700 Sales revenue
$23900 Service revenue
$41000 Rental revenue
$93600 Total Revenue
(-$44000) Cost of goods sold
$49600 Gross Profits
(b) Operating Expense
$12500 General and administrative expense
$5150 Selling expense
$17650 Operating expense
(c) Operating income
$49600 Gross Profit
($17650) Operating expense
$31950 Operating income
(d) Operating Income
$31950 Operating income
($8800) Interest expense
$23150 Pretax income
(e) Net Income
$23150 Pretax Income
($5300) Income tax expense
$17850 Net Income
(f) Earnings Per Share
$17850/15000= $1.19