Exam 2: Constructing Financial Statements

At the end of 2016, Lumos Company reported the following amounts on its balance sheet: Answer each of the following independent questions: A. Assume that Lumos' stockholders' equity on January 1, 2016 was $264,000. Lumos did not issue common stock during the year, but it paid $36,000 cash in dividends. How much is Lumos' net income or loss for 2016? B. Assume that Lumos' stockholders' equity on January 1, 2016 was $236,000, and that Lumos issued additional common stock of $70,000 and paid $44,000 in cash dividends before the end of 2016. What was Lumos' net income or net loss for 2016?

Cash collected on accounts receivable would produce what effect on the balance sheet?

The Cash t-account has a beginning balance of $64,000. During the year, $488,000 was debited and $498,000 was credited to the account. What is the ending balance of cash?

The records of Meadow Corp. show the following information after all transactions are recorded for 2016. Meadow raised $24,000 cash through the issuance of additional common stock during the year. Based on this information, prepare Meadow's statement of stockholders' equity for the year ending December 31, 2016.

Lollipop, Inc. has $2,400 net working capital and $6,600 of current assets, what is the amount of the firm's current liabilities?

Information concerning Nickolas' earnings for three years appears below. Calculate the missing amounts.

Under the matching principle, the cost of inventory should be reported as an expense in the income statement when it is purchased, even if it is purchased on credit and will not be paid until the next reporting period.

Which of the following statements is true regarding the current ratio?

The following items and amounts are taken from the 2016 financial records of Retrieval Co.: Prepare a balance sheet for Retrieval Co. for the year ending December 31, 2016.

The following items and amounts are taken from the 2016 financial records of Retrieval Co.: Prepare an income statement for the year ending December 31, 2016:

Based on the following list of transactions, indicate their effect on Divine Dogs assets, liabilities and equity for his one month of operations. A. Divine buys a cooler and a George Foreman grill for $1,200 cash. B. Divine takes out a loan for $3,200. C. Divine buys 600 hot dogs at $0.50 each, 500 buns at $0.20 each, 800 cans of soft drinks at $0.50 each and a huge bottle of ketchup for $50. D. Divine sells 160 hot dog / drink combos for $8 each. E. Divine records the product cost for the sales in (D) above, including ketchup, at $1.50 each. F. Divine pays his hot dog salesmen $800 for the month. G. Divine pays $80 of his loan.

Prepare an income statement for the month ended July 31, 2016 for Bargain Books. Bargain's account balances for the month ending July 31, 2016 are:

If stockholders' equity is $88,000 on January 1, 2016, and decreases to $64,000 on December 31, 2016, this could only be due to a net loss of $24,000.

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Note receivable due in 30 days

Record the effects of each transaction or event in the table below:

Which of the following is not shown in the statement of stockholder's equity?

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Value of land in excess of cost

Account titles are commonly grouped into what five categories in the chart of accounts?

Select from choices of its balance sheet classification. If the item should not appear on the balance sheet, select H. -Cash

Compute the missing amounts for each of the last 3 years for West Suburban Inc.