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Ch. 3 Exercises 1

The document includes financial statements for Wildhorse Co. for the month ending August 31, 2017, detailing an income statement showing a net income of $6,940, a retained earnings statement reflecting a balance of $5,340, and a classified balance sheet with total assets of $27,900. Additionally, it presents a trial balance for Blossom Company as of June 30, 2017, with total debits and credits both amounting to $28,190. The trial balance lists various accounts including cash, accounts receivable, and expenses.

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4 views4 pages

Ch. 3 Exercises 1

The document includes financial statements for Wildhorse Co. for the month ending August 31, 2017, detailing an income statement showing a net income of $6,940, a retained earnings statement reflecting a balance of $5,340, and a classified balance sheet with total assets of $27,900. Additionally, it presents a trial balance for Blossom Company as of June 30, 2017, with total debits and credits both amounting to $28,190. The trial balance lists various accounts including cash, accounts receivable, and expenses.

Uploaded by

jorge
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Part I - prepare an income statement Part II - prepare a retained earnings statement

Wildhorse Co. Wildhorse Co.


Income Statement Retained Earnings Statements
for the month ending August 31, 2017 for the month ending August 31, 2017

Revenue Retained Earnings - Aug. 1, 2017 -


Service Revenue 10,600
Net Income 6,940
Expenses
Salaries & Wages Expense 2,600 Dividends 1,600
Rent Expense 700
Utilities Expense 360 Retained Earnings - Aug. 31, 2017 5,340
Total Expenses 3,660

Net Income (Loss) 6,940


Part III - prepare a classified balance sheet
Wildhorse Co.
Balance Sheet
as of August 31, 2017

Current Assets
Cash 16,570
Accounts Receivable 5,820
Supplies 600
Total Current Assets 22,990

Equipment 4,910

Total Assets 27,900

Current Liabilities
Accounts Payable 1,760

Stockholders' Equity
Common Stock 20,800
Retained Earnings 5,340
Total Stockholders' Equity 26,140

Total Liabilities & Stockholders' Equity 27,900


Blossom Company Accounts Normal Balance
Trial Balance Asset Debit
as of June 30, 2017 Liability Credit
Debit Credit Equity Credit
Cash 5,830 Revenue Credit
Accounts Receivable 2,600 Expense Debit
Equipment 13,160 Dividends Debit
Accounts Payable 1,430
Common Stock 18,000
Dividends 1,940
Service Revenue 8,760
Salaries and Wages Expense 3,260
Rent Expense 1,400
28,190 28,190

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