solbridgeaccounting 1 homework.docxVIP

Name: Jiakang Zong ID: 201000110 Date: 03/10/2012 Homework---Financial Accounting 1 Chapter 1 and Chapter 2 E 1-4 Completing a Balance Sheet and Inferring Net Income Required: Complete the following balance sheet at December 31, 2009 __________Assets___________________ Cash $47,500 Accounts Receivable 26,900_ Property and Equipment 48,000_ Total Assets $_122,400_ ___Liabilities and Stockholders’ Equity____ Liabilities Accounts Payable $8,000_ Note Payable 2,850 Total liabilities 10,850 Stockholders’ Equity Contributed Capital 98,00_ Retained Earnings 13,550 Total Stockholders’ Equity 111,550 Total Liabilities and Stockholders’ Equity $122,400 Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2009. Retained Earnings( 2008) $ 0 Add: Net Income ? Subtract: Dividends 0 Retained Earnings(2009) $ 13,550 The amount of net income for the year ended 2009 is $ 13,550 As of December 31, 2009, did most of the financing for assets come from creditors or stockholders? Stockholders Assuming that Reader Direct generates net income of $3,000 and pays dividends of $2,000 in 2010, what would be the ending Retained Earnings balance at December 31, 2010? Retained Earnings (2009) $ 13,550 Add: Net Income 3,000 Subtract: Dividends -2,000 Retained Earnings(2010) $ 14,550 The ending Retained Earnings are $ 14,550 E 1-6 Preparing an Income Statement and Inferring Missing Values S