prepare the balance sheet and financial statements, Financial Accounting

The assets and liabilities of Toronto Service Inc. as of December 31, 2008, and revenue and expenses for the year ended December 31, 2008 are listed below:

Accounts Payable

$21,000

 

Property tax expense

$5,000

Accounts Receivable

25,000

 

Rent expense

3,000

Advertising expense

10,000

 

Salary expense

85,000

Building

140,000

 

Salary payable

12,000

Cash

10,000

 

Service Revenue

200,000

Furniture

20,000

 

Share Capital

75,000

Interest expense

4,000

 

Supplies

3,000

Land

98,000

 

Note Payable

95,000

Beginning Retained Earnings were $50,000 and dividends totalled $50,000 for the year.

Required:

a.    Prepare the Income Statement for the year ended December 31, 2008

b.    Prepare the Statement of Retained Earnings for the year

c.    Prepare the Balance Sheet at December 31, 2008

d.    Based on the financial statements prepared, answer the following questions:

1.    Was Toronto Service Inc. profitable during 2008? If so by how much?

2.    Did Retained Earnings increase or decrease? What is the amount of the change?

3.    Which is the greater total, liabilities or total equity? Who owns more of the company's assets, the creditors or the shareholders?

Posted Date: 4/1/2013 6:02:38 AM | Location : United States







Related Discussions:- prepare the balance sheet and financial statements, Assignment Help, Ask Question on prepare the balance sheet and financial statements, Get Answer, Expert's Help, prepare the balance sheet and financial statements Discussions

Write discussion on prepare the balance sheet and financial statements
Your posts are moderated
Related Questions
What is bargain purchase? Financial assets acquired for less than FMV. In a bargain purchase BC, a corporate entity is acquired by another for an amount that is less than the

how to prepare the accounts when goodwill is not to be maintained in the books

Silva and Juanita Rodriquez are the owners of Year-Round Landscape, Inc., a small landscape and yard service business in southern California. The business is three years old and ha

Remedies available to beneficiary 1) Injunction - to prevent unauthorised action by trustees; 2) Personal action - a trustee is only liable for his own acts and defaul

Q. What do you understand by Measurement Date in stock option? Measurement Date - The date at which equity share price and other pertinent factors, like expected volatility tha

Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2014, Steven Craig and Georgia Enterprises.


Equity shareholders, potential and present, seem primarily to the company's record of earnings. They are thus interested in relationships as earnings per share or EPS and dividends

After going through this section, you must be capable to: -          Identify the time value of money; -          Know what gives money its time value; -          Identify

The Statement of Affairs The statement of affairs sets out: (a) The various assets of the debtor, at the values they are expected to realise; (b) The creditors, classified acc