Question

questions worth 15 marks per questions for a total of 60 marks ving problems by providing what is asked for each one. Part B problem solving questions Solve the following problems by providing Problem 1 Keria Corp. prepared the following random list of December 31, 2017, accounting records. The beginning $43.100 and the owner, Keria Staple, received dividend sheet for Keria Corp. as of December 31, 2017. ollowing random list of assets, liabilities, revenues, and expenses from its ang records. The beginning retained earnings as of January 1, 2017 was na Staple, received dividends of $14,600 during the year. Prepare the balance Accounts receivable Interest expense Supplies Accounts payable Utilities expense Furniture Salary payable Common shares $15,700 4,900 1,500 106,100 5,200 18,000 2,400 30,500 Service revenue Cash Note payable Salary expense Interest payable Rent expense Automobiles Land $50,500 128,000 17,000 18,000 1,600 9,400 12,900 23,000

Answer 1

Automobile is assumed to be a fixed asset. Hence, it is shown under Non-current assets and not under current assets.

$ 50,500 Keria Corp Income Statement For the Year Ended December 31, 2017 Service Revenue Operating expenses: Salary expense $ 18,000 Rent expense $ 9,400 Interest Expense $ 4,900 Utilities Expense $ 5,200 Total operating expenses Net Income $ $ 37,500 13,000 Keria Corp Statement of Retained Earnings For the Year Ended December 31, 2017 Retained Earnings beginning balance $ Add: Net Income $ Add: Dividends paid (to owner) $ Retained Earnings Ending balance $ 43,100 13,000 (14,600) 41,500

$ $ $ 128,000 15,700 1,500 Balance Sheet Assets Current assets Cash Accounts receivable Supplies Total Current Assets Non-current assets Automobiles Furniture Land Total Assets $ 145,200 $ $ $ 12,900 18,000 23,000 $ $ 53,900 199,100 Liabilities and Owners' Capital Current liabilities Accounts Payable $ 106,100 Salary Payable $ 2,400 Notes Payable $ 17,000 Interest Payable $ 1,600 Total Current Liabilities $ Total Laibilities $ Stockholders' Equity Common Shares $ 30,500 Retained Earnings $ 41,500 Total Stockholders' Equity | $ Total Liabilities and Stockholders' Equity $ 127,100 127,100 72,000 199,100