Financial Statements Analysis and Review Exercises

School: California Polytechnic State University, Pomona - Course: ACC 3110 - Subject: Accounting

Problem 3-6A Part 1 TYBALT CONSTRUCTION Income Statement For Year Ended December 31 Revenues Services revenue................................................$97,000 Rent revenue.......................................................14,000 Dividends revenue.............................................2,000 Interest revenue..................................................2,100 Total revenues....................................................$115,100 Expenses Depreciation expense—Building......................11,000 Depreciation expense—Equipment..................6,000 Wages expense...................................................32,000 Interest expense.................................................5,100 Insurance expense.............................................10,000 Rent expense......................................................13,400 Supplies expense...............................................7,400 Postage expense................................................4,200 Property taxes expense.....................................5,000 Repairs expense.................................................8,900 Telephone expense............................................3,200 Utilities expense.................................................4,600 Total expenses....................................................110,800 Net income............................................................$4,300 TYBALT CONSTRUCTION Statement of Retained Earnings For Year Ended December 31 Retained earnings, Dec. 31 prior year end........$121,400 Add:Net income.................................................4,300 125,700 Less: Dividends...................................................(13,000) Retained earnings, Dec. 31 current year end ...$112,700

Problem 3-6A(Continued) TYBALT CONSTRUCTION Balance Sheet December 31 Assets Current assets Cash$5,000 Short-term investments23,000 Supplies8,100 Prepaid insurance7,000 Total current assets$ 43,100 Plant assets Equipment40,000 Accumulated depreciation—Equipment(20,000) 20,000 Building150,000 Accumulated depreciation—Building(50,000) 100,000