Question

Module # 1 Homework Problem 1 rom the following information for McStuffin Co. for the year ended 12/31/18, prepare the Financial tatements. There were 100 shares of common stock issued on April 1, 2018 and a dividend of $5,000 was paid on November 30, 2018. Beginning Common Stock was $9,000 and beginning Retained Earnings was $57,500 Advertising Expense as Common Stock (1,000 shares) Capital in Excess Par Inventory Note Payable, Long-term Interest Expense Goodwill $ 1,000 47,000 1,000 9,000 25,000 20,000 5,000 10,000 8,000 Rent Expense Retained Earnings Sales Tax Expense Utilities Expense Wage Expense Land Wages Payable 12,000 63,000 85,000 4,500 2,000 10,000 20,000 1,000 Accounts Payable Problem 2 From the following information for John & Debbie's Production Company for the year ended 12/31/18 prepare Financial Statements. The company issued 1,000 new shares of common stock for $10,000 on May 1, 2018 and declared and paid dividends of $2,000 in 2018. Beginning Common Stock was $90,000 and the beginning Retained Earnings was $90,600. Accounts Payable Accounts Receivable Advertising Expense Cash Common Stock (10,000 Shares*) 100,000 Cost of Sales Inventory Land Patent 50,000 40,000 5,000 50,000 Interest Expense Note Payable, Long-Term 80,000 Rent Expense Retained Earnings 134,000 Sales Tax Expense Utilities Expense Wage Expense Wages Payable 8,000 36,000 72,000 60,000 200,000 20,000 200,000 18,600 5,000 10.000 6,000 The common stock is no par or stated value stock. Review the Debits and Credits in the Readings Section at Front Not homework EPS for Bella (Problem on next page) 00,000/ 2/12 X 6,000+3/12 X 8,000+ 1/12 X 12,000 +6/12 X 16,000 100,000/12,000 $8.33

Answer 1

The financial statements are 1. Income Statement, 2. Balance sheet.

The financial statements for the problem - 1 and problem - 2 are below