128. Jenna Fisk started her business by issuing $8,000 of common stock on January 1, 2016. Jenna performed $18,500 of service on account in 2016, and she collected $16,200 of this amount by year end. She paid operating expenses of $14,900 and paid a $600 dividend to the stockholders. Required: a) What is the amount of total assets at the end of 2016? b) What is the amount of cash on hand at the end of 2016? c) What is net income for 2016? d) Prepare a balance sheet for December 31, 2016. Answer: a) $8,000 + $18,500 - $14,900 - $600 = $11,000 Total assets b) $8,000 + $16,200 - $14,900 - $600 = $8,700 Cash balance c) $18,500 - $14,900 = $3,600 Net Income d) Learning Objective: 02-01 Learning Objective: 02-03 Topic Area: Accounting for accounts receivable Topic Area:Prepare financial statements Topic Area: Balance sheet AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Level of Difficulty: 2 Medium
128. Jenna Fisk started her business by issuing $8,000 of common stock on January 1, 2016. Jenna performed $18,500 of service on account in 2016, and she collected $16,200 of this amount by year end. She paid operating expenses of $14,900 and paid a $600 dividend to the stockholders. Required: a) What is the amount of total assets at the end of 2016? b) What is the amount of cash on hand at the end of 2016? c) What is net income for 2016? d) Prepare a balance sheet for December 31, 2016. Answer: a) $8,000 + $18,500 - $14,900 - $600 = $11,000 Total assets b) $8,000 + $16,200 - $14,900 - $600 = $8,700 Cash balance c) $18,500 - $14,900 = $3,600 Net Income d) Learning Objective: 02-01 Learning Objective: 02-03 Topic Area: Accounting for accounts receivable Topic Area:Prepare financial statements Topic Area: Balance sheet AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Level of Difficulty: 2 Medium
Test-Bank-Fundamental-Financial-Accounting-Concepts-9th-Edition-Edmonds.docx