Reference no: EM131431547

Assignment

Exercise #1

Jason Bear, an Outdoor Outfitter, has compiled the following financial information as of December 31, 2016.

Revenues during 2016-camping fees   $140,000        Notes payable                  $60,000
Revenues during 2016-general store    47,000           Expenses during 2016     150,000
Accounts payable                               11,000           Supplies on hand             2,500
Cash on hand                                    20,000           Common stock                20,000
Original cost of equipment                   105,500         Retained earnings               ?
Fair value of equipment                       140,000

Instructions

Determine Bear Park's net income for 2016.

Prepare a balance sheet for Bear Park as of December 31, 2016.

Exercise 2

Selected transactions for Lauren Rountree Company during its first month in business are presented below.

Sept. 1 Invested $10,000 cash in the business in exchange for common stock.

5 Purchased equipment for $12,000 paying $4,000 in cash and the balance on account.

25 Paid $2,400 cash on balance owed for equipment.

30 Declared and paid a $500 cash dividend.

Campbell's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 311 Common Stock; No. 332 Dividends.

(a) Journalize the transactions of the general journal. (Omit explanations.)

(b) Post the transactions using the standard t-account form.

Sept. 1 Invested $10,000 cash in the business in exchange for common stock.

Date Account Title Post Ref Debit Credit

Exercise #3 Determine the missing amounts. Show calculations

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

                                            Mark Inc              Paul Enterprises
Beginning of year:
Total assets                           $97,000                   $129,000
Total liabilities                         85,000                        (c)
Total stockholders' equity            (a)                       75,000
End of year:
Total assets                           160,000                   180,000
Total liabilities                         120,000                   50,000
Total stockholders' equity        40000                      130,000
Changes during year in stockholders' equity:
Additional investment                 (b)                        25000
Dividends                               24,000                        (d)
Total revenues                        215,000                   100,000
Total expenses                       175,000                    55000

Beginning Stockholder Equity+Revenues+Additional Investment-Expenses-Dividends=Ending Stockholder Equity

Presented below is financial information related to the 2016 operations of Brian Baik Company.

Maintenance and repairs expense $97,000

Utilities expense 10,000

Salaries and wages expense 142,000

Advertising expense 3,500

Ticket revenue 335,000

Instructions

Prepare the 2016 income statement for Brian Baick Company.