Question

$ % 9 8 68 Formatting as Table Merge & Center E33x v fx B C D E F G 1 Background Information: The New Life Dance Company experienced the following events during 2019: M 38 pts. 1 Acquired $40,000 cash from the issue of common stock 2 Paid $15,000 cash to purchase land 3 Borrowed $8,000 in cash 4 Paid $1,500 cash for utilities expense 5 Provided ballet services for $25,000 cash 6 Paid $17,000 cash for other operating expenses 7 Paid $3,200 cash dividend to the stockholders 8 Determined that the market value of the land purchase is now only $15,000 12 Note: There are drop downs for the income Statement and Balance Sheet for the labels. 13 14 a) Complete the accounting equation for the different transactions. The starting balances from January 1 have been included. Once you have completed this 15 you will have the needed information to complete the Income Statement and Balance Sheet Below. 20 Event Cash $ The New Life Dance Company Accounting Equation Assets Liabilities Land Notes Payable + 25,000 $ 1,500 $ 1,500 $ 17,000 Stockholders Equity Account Title For Common Stock + Retained Earnings Retained Earnings $ 40,000 $ 3,200 Balance 8,000 5 28 6 25,000 + $ 1,500 = $ 26,500 + $ 43,200 + $ nhiom 12 Problem 1.4 Problem 1. Problem 1.6 +

Answer 1

Requirement (a) The New Life Dance Company Accouting Equation Liabilities Stockholder's Equity Account title for = Notes Payable + Common Stock + Retained Earnings Retained Earnings Event Assets + Land Cash Balance $ 40,000 15,000 NM + 8,000 40,000 -15,000 8,000 -1,500 25,000 - 17,000 -3,200 -1,500 Utilities expenses 25,000 Ballet servies income -17,000 Other Operating expenses -3,200 Cash Dividends N 00 $ Total 36,300 + $ 15,000 = $ 8,000 + $ 40,000 + $ 3,300

Requirement (b) New Life Dance Company Income Statement For the year ended December 31, 2019 Income from Ballet Services (-) Utilities expenses (-) Other Operating expenses Net Income 25,000 -1,500 -17,000 6,500 Requirement (C) New Life Dance Company Balance Sheet As of December 31, 2019 36,300 15,000 51,300 8,000 Assets Cash Land Total Assets Liabilities Notes Payable $ Total Liabilities Stockholder's equity Common Stock Retained Earnings Total Stockholder's equity Total Liabilities and Stockholder's equity 8,000 40,000 3,300 $ $ 43,300 51,300