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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 40
Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet
The following information was reported in the December 31, 2010, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions).
1. Prepare an income statement for the year ended December 31, 2010.
2. Prepare a statement of retained earnings for the year ended December 31, 2010.
TIP : Assume the balance in retained earnings was $4,971 (million) at January 1, 2010.
3. Prepare a balance sheet at December 31, 2010.
4. Using the balance sheet, indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders' equity.
The following information was reported in the December 31, 2010, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions).
1. Prepare an income statement for the year ended December 31, 2010.
2. Prepare a statement of retained earnings for the year ended December 31, 2010.
TIP : Assume the balance in retained earnings was $4,971 (million) at January 1, 2010.
3. Prepare a balance sheet at December 31, 2010.
4. Using the balance sheet, indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders' equity.
Explanation
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1.
Income statement:
• A statement tha...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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