Answer the questions which follow. Deriving additional information from the Balance Sheet 03. WE 500 WP 500. Practice: Interpreting the Income Statement. Required: Prepare balance sheet for F. Green as at 31 March 2015 in both horizontal and vertical style.. The net income (or net loss) from the income statement is added to the beginning Retained Earnings balance in the statement of retained earnings. The following example questions ask you to calculate a company’s total liabilities and total equity on a given day. There chapter wise Practice Questions with complete solutions are available for download in ... Profit and loss is credit in income statement; ... (10,000*20%) will be shown on the liability side of balance sheet and balance of Rs. Prepaid asset (CA↑) 15,000 Cash (CA↓) 15,000 6) Collected $16,000 in advance from customers for deliveries to be made in six months. Cash Noncash LiabilContrib. Preparing the Balance Sheet Chapter Exam Instructions. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. Statutory Horizontal Form of Balance Sheet 05. Any dividends declared during the period are subtracted in arriving at the ending Retained Earnings balance to be reported in the balance sheet at the end of the period. Interpreting the Income Statement. Accounting for the receipt of the $100 is likely to result in a. 190 0 obj<>stream 0000003092 00000 n ���&m. HELEN'S HAIR STYLISTS PROJECTED INCOME STATEMENT FOR APRIL TO JUNE 2010 APRIL MAY JUNE R R R Sales of hair products 87 500 105 000 122 500 Cost of sales 50 000 60 000 70 000 Gross profit 37 500 45 000 52 500 Other operating income 122 000 122 000 162 000 2. Rs.9000 on liability side, Rs. Those questions that require some narrative are still lacking in some cases with only a few words offered being the order of the day. Practice Problems - Balance Sheet - Solutions Exercise 4 5) Prepaid $15,000 of selling, general, and administrative expenses to be used within the next twelve months. 0000001406 00000 n Income Statement (revenues and expenses) 3. INFORMATION. Balance Sheet Ending December 31st 2014. 0000001662 00000 n Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. By examining a sample balance sheet and income statement, small businesses can better understand the relationship between the two reports. The following is the statement of receipts and payments of the Charity Eye Hospital for the year ending March 31, 2012: You are asked to prepare the Income and Expenditure Account for the year and the Balance Sheet as on 31st March, 2012. In summary, the left-hand side of the balance sheet reports the assets that earn income and the right-hand side reports how these assets are fi nanced. 0000000016 00000 n How does it differ from a Balance Sheet? Basic cash flow statement. In simple words balance sheet analysis states that it is an analysis of liabilities, assets and equity of a business. This page contains the CBSE accountancy class 11 chapter 9, Financial Statements – I Numerical questions Solutions .You can find the questions/answers/solutions for the chapter 9 of CBSE class 11 accountancy in this page. The Income Statement summarizes all revenue earned and expenses incurred during a specified accounting period, and shows the net income (or net loss) earned over that period. 0000002659 00000 n Accounting Study Guide Solutions to Exercises Lesson 3: Income Statement 1. Balance sheet and income statement relationship. Balance Sheet Transaction WE WP. C. statement of cash flows. The financial statements such as a statement of cash flows and the income statement along with balance sheet are used to prepare and analyse the financial status of a company. It does not apply to (i) Insurance or Banking Company, (ii) Company for which a form of balance sheet or income statement is specified under any other Act. 188 0 obj<> endobj 0000004053 00000 n Review the Balance Sheet below and answer the following questions: 1) What kind of assets are account receivables? 30,000 x�b```f``���$�00 � +�0p,`� N��½���u9g�G�3\k8߳j�.����^�|��c-� �'�>v^��l/�}���b�c+���a bka������]�����m)�D/�u��Y3�`�ce;���&ɘ��� ��E��I*}!��N�OQg\�3�q�p��"ȑ��"q��L�A���!K��C�E(,�I9���1�����%�t$��L=;圛����*k�O���Q��c0�f^�ٵ��� ����'+�/ ��.����k��V��{{TT�e+���HTl���ʖw�b {�'� �I�+��� >��mB^` (�$[�$] Income Statement Dr. Christy Russo For the Month Ending September 30, 20— Statement of Owner's Equity Dr. Christy Russo Supplies Expense Net Income Salary Expense Owner's Equity C. Russo, Capital Furniture and Equipment Liabilities For the Month Ending September 30, 20— Balance Sheet Dr. Christy Russo September 30, 20— Accounts Payable Assets Discover everything Scribd has to offer, including books and audiobooks from major publishers. Earned RevExpenNet + = + + = Asset Assets ities Capital Capital enues ses Income. In this case, the statement of owner’s equity uses the net income (or net loss) amount from the income statement (Net Income, $5,800). Basic cash flow statement. Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. 188 16 Are the Statutory Formats useful? INV AP. Balance Sheet - the information it provides 02. Doing the example with accounts payable growing. Problem 3: Prepare Trial Balance as on 31.03.2012 from the following balances of Ms. Maliha Afzal: Drawings Rs. Doing the example with accounts payable growing. 0000002366 00000 n Adjustments . Prepare the income statement, statement of changes in equity and balance sheet for Palicio Security Services Inc. A: This is actually a pretty tricky and advanced accounting question. (i) Common size income statement The statement in which sales figure is assumed to be 100 and all other figures are expressed as a percentage of sales is known as common size income statement. 1. (As it is earned, it moves from the balance sheet to the income statement as revenue.) Inventory on 31 st, December 2015 was valued at Rs. 100% found this document useful (3 votes), 100% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Solutions to Module 2 Exercises and Problems.pdf For Later. Ask you to calculate a company’s assets, liabilities, assets and liabilities of the three financial. 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