ACCT 212 Week 1 Homework Assignment
1. Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the
Northeast. At the end of the current period, the company reports the following amounts:
Assets = $34,000; Liabilities = $19,000; Dividends = $1,400; Revenues = $10,800; Expenses
= $7,400.
Required:
1. Calculate net income.
Revenues = $10,800 - Expenses = $7,400.
= 3,400
2. Calculate stockholders' equity at the end of the period.
: Assets = $34,000 - Liabilities = $19,000
= 15,000
2. At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock
outstanding and retained earnings of $6,500. During the year, Buffalo reports net income of
$6,800 and pays dividends of $1,500. In addition, Buffalo issues additional common stock for
$6,300.
Required:
Prepare the statement of stockholders' equity at the end of the year (December 31).
BUFFALO DRILLING
Statement of Stockholders’ Equity
Common Stock Retained Earnings Total Stockholders’ Equity
Beginning balance $12,000 $6,500 $18,500
Issuance of common stock 6,300 0 6,300
Add: Net income 0 6,800 6,800
Less: Dividends (1,500) (1,500)
Ending balance $18,300 $11,800 $30,100
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, 3. At the beginning of 2018, Artichoke Academy reported a balance in common stock of
$153,000 and a balance in retained earnings of $53,000. During the year, the company
issued additional shares of stock for $43,000, earned net income of $33,000, and paid
dividends of $10,300. In addition, the company reported balances for the following assets
and liabilities on December 31.
Assets Liabilities
Cash $ 52,900 Accounts payable $ 8,100
Supplies 11,200 Utilities payable 3,000
Prepaid rent 25,500 Salaries payable 3,800
Land 215,000 Notes payable 18,000
Required:
1. Prepare a statement of stockholders’ equity.
TICHOKE ACADEMY
Statement of Stockholders’ Equity
Common Stock Retained Earnings Total Stockholders Equity
Beginning balance $153,000 $53,000 $206,00
Issuance of common stock 43,0000 0 43,000
Add: Net income 0 33,000 33,000
Less: Dividends 0 (10,300) (10,300)
Ending balance $196,000 $75,700 $271,700
ARTICHOKE ACADEMY
Balance Sheet
Assets Liabilities
Cash $52,900 Accounts payable $8,100
Supplies 11,200 Utilities payable 3,000
Prepaid rent 25,500 Salaries payable 3,800
Land 215,000 Notes payable 18,000
Total liabilities 32,900
Stockholders’ Equity
Common stock 196,000
Retained earnings 75,700
Total stockholders’ equity 271,700
Total Total liabilities and stockholders’
$304,600 $304,600
assets equity
4. Each of the following independent situations represents amounts shown on the four basic
financial statements. Fill in the formulas and missing blanks using your knowledge of
amounts that appear on the financial statements.
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1. Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the
Northeast. At the end of the current period, the company reports the following amounts:
Assets = $34,000; Liabilities = $19,000; Dividends = $1,400; Revenues = $10,800; Expenses
= $7,400.
Required:
1. Calculate net income.
Revenues = $10,800 - Expenses = $7,400.
= 3,400
2. Calculate stockholders' equity at the end of the period.
: Assets = $34,000 - Liabilities = $19,000
= 15,000
2. At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock
outstanding and retained earnings of $6,500. During the year, Buffalo reports net income of
$6,800 and pays dividends of $1,500. In addition, Buffalo issues additional common stock for
$6,300.
Required:
Prepare the statement of stockholders' equity at the end of the year (December 31).
BUFFALO DRILLING
Statement of Stockholders’ Equity
Common Stock Retained Earnings Total Stockholders’ Equity
Beginning balance $12,000 $6,500 $18,500
Issuance of common stock 6,300 0 6,300
Add: Net income 0 6,800 6,800
Less: Dividends (1,500) (1,500)
Ending balance $18,300 $11,800 $30,100
This study source was downloaded by 100000801755870 from CourseHero.com on 04-03-2022 08:09:45 GMT -05:00
https://www.coursehero.com/file/25086165/chapter-1-HW-QUIZdocx/
, 3. At the beginning of 2018, Artichoke Academy reported a balance in common stock of
$153,000 and a balance in retained earnings of $53,000. During the year, the company
issued additional shares of stock for $43,000, earned net income of $33,000, and paid
dividends of $10,300. In addition, the company reported balances for the following assets
and liabilities on December 31.
Assets Liabilities
Cash $ 52,900 Accounts payable $ 8,100
Supplies 11,200 Utilities payable 3,000
Prepaid rent 25,500 Salaries payable 3,800
Land 215,000 Notes payable 18,000
Required:
1. Prepare a statement of stockholders’ equity.
TICHOKE ACADEMY
Statement of Stockholders’ Equity
Common Stock Retained Earnings Total Stockholders Equity
Beginning balance $153,000 $53,000 $206,00
Issuance of common stock 43,0000 0 43,000
Add: Net income 0 33,000 33,000
Less: Dividends 0 (10,300) (10,300)
Ending balance $196,000 $75,700 $271,700
ARTICHOKE ACADEMY
Balance Sheet
Assets Liabilities
Cash $52,900 Accounts payable $8,100
Supplies 11,200 Utilities payable 3,000
Prepaid rent 25,500 Salaries payable 3,800
Land 215,000 Notes payable 18,000
Total liabilities 32,900
Stockholders’ Equity
Common stock 196,000
Retained earnings 75,700
Total stockholders’ equity 271,700
Total Total liabilities and stockholders’
$304,600 $304,600
assets equity
4. Each of the following independent situations represents amounts shown on the four basic
financial statements. Fill in the formulas and missing blanks using your knowledge of
amounts that appear on the financial statements.
This study source was downloaded by 100000801755870 from CourseHero.com on 04-03-2022 08:09:45 GMT -05:00
https://www.coursehero.com/file/25086165/chapter-1-HW-QUIZdocx/
