Principles of Financial Accounting

Stephanie Daniels 8/18/13

Written Assignment 2

Exercise 2.3 page 66

Mercer Company

Balance Sheet

December 31, 2011

Assets Liabilities & Owners Equity

Cash $36,300 Liabilities:

Accts. Receivable 56,700 Accts. Payable $43,800

Land 90,000 Notes Payable 207,000

Building 210,000 Owners’ Equity:

Tools & Equipment 12,400 Capital Stock 75,000

Retained Earnings 79,600

Totals ______ Totals _______

$405,400 $405,400

**Retained earnings = $79,600

Exercise 2.13 page 68

Yarnell Company

Income Statement

For the Period August 1-31, 2011

Sales Revenues $15,000

Operating Expenses:

Expenses required to provide services $7,800

Land 16,000 $23,000

Net Loss $8,000

Ex. 2.13 | YARNELL COMPANY |

| Income Statement |

| For the Month Ended August 31, 2011 |

  | Service revenues ……………………………………………………………………… | $ 15,000 |

  | Expenses ………………………………………………………………………………. | 7,800 |

  | Net income ……………………………………………………………………………. | $ 7,200 |

  |   |   |   |   |   |

  | The following four items represent cash flows, but are not revenues or expenses that should be included in the income statement: |

| |

|      Investment by stockholders |   |   |   |

|      Loan from bank |   |   |   |

|      Payments to long-term creditors |   |   |   |

|      Purchase of land |   |   |   |

Stephanie Daniels 8/18/2013 Exercise 2.3A, page 70

Goldstar Communications

Expanded Accounting Equation

December 1-31, 2011

Assets Liabilities & Owners Equity

Cash Land Bldg. Ofc. Equip = Notes Pay. + Accts. Pay. + Capital Stock

Dec 31

Bal. $37,000 95,000 125,000 51,250 80,000 28,250 200,000

+ 35,000 -35,000

72,000 165,000

-22,500 +35,000 +55,000 +67,500

49,500 130,000...