Posted: March 16th, 2017

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

ason 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.