Recod adjustments and prepare financial statements (lo 1,2,3,4).

 

Transactions for Pops Company for 2011 were as follows:

 

a. The owners started the business as a corporation by contributing $3,000 cash in exchange for common stock.

b. The company purchased office equipment for $8,000 cash and land for $15,000 cash

c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.

d. The company purchased $890 worth of supplies for cash

e. The company paid  $6,000 in cash for other opearating expenses

f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however is not until January 4, 2012

g. Only $175 worth of supplies was left at the end of the year.

The office equipment was purchased on January 1 and is expected to last for 8 years ( straightline depreciation no salvage value)

Sheet1

4

enneth

A

K

+

6

Amount

Amount

,000

Amount

Amount Title

Amount

11

Amount Amount Title

0

Amount Title

Amount Title

Amount Title

15

6,000

5

8,000 (1,000)

2,480 – 0

17

, 2011

Amount

20

Amount

Amount

Amount

Amount –

0

Pops Company

For the Year Ended

$ – 0

Amount

31

Amount

–

–

–

$ – 0

Pops Company

December 31, 2011

Liabilities

Cash Amount

Amount

A/R Amount

–

Supplies Amount

–

Amount

Amount

Amount

48 Land Amount Total shareholder’s equity –

$ – 0 Total $ –

Pops Company

Amount

Amount

Amount

–

Amount

Amount

–

Amount –

–

																																																																																																																																																																																																																																																																											Problem 3											–	6	A	Name		K
Section
B	C	D	E	F	G	H	I	J
5	Date	A s s e t s =		Liabilities	Shareholder’s Equity
	20	11		Cash		A/R		Supplies	Equipment	Accum. Depr.		Land	Wages Pay.
7	a.																																Amount						Title
8	b.		8,000		15
9	c.		6,000
10	d.	890
e.
12	Adj. 1		2,	48
13	Adj. 2	(715)
14	Adj. 3		(1,000)
	Total		– 0		17	15,000
16				Pops Company
Income Statement
18		For the Year Ended December	31
19	Revenue
Expenses
21	Operating expenses
22	Salary expense
23	Supplies expense
24	Depreciation expense
25	Net Income					$ –
26
27	Statement of Changes in Shareholder’s Equity
28	December 31, 2011
29	Beginning contributed capital
30	Contributions during the year
Ending contributed capital
32
33	Beginning retained earnings
34	Net income for the year
35	Ending retained earnings
36		Total shareholder’s equity
37
38
39	Balance Sheet
40
41	Assets
42	Current assets	Current liabilities
43	Wages payable
44	Total current liabilities
45	Shareholder’s equity
46	Total current assets	Common stock
47	Equipment-net	Retained earnings
49	Total assets
50
51
52	Statement of Cash Flows
53	For the Year Ended December 31, 2011
54	Cash from operating activities
55	Cash collected from customers
56	Cash paid to vendors
57	Cash paid for expenses
58	Total cash from operations
59	Cash from investing activities
60	Purchase of equipment
61	Purchase of land
62	Cash from financing activities
63	Sale of common stock
64	Net increase in cash
65
66
End of Problem

&LReimers, Financial Accounting 3e
CyberCoach:
This amount is equal to the amount
in cell E49
.

Sheet2

Sheet3