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Exercise 1: On December 31, Bryniuk's Company, The Accounting Records Showed The Following Information

The document provides accounting information for Bryniuk's Company for the year ended December 31. It includes the opening balances for various asset, liability, equity, revenue and expense accounts. It then provides the information to prepare the company's income statement, statement of retained earnings, and balance sheet. The income statement shows revenues of $175,000 and expenses of $90,500, resulting in net income of $84,500. The statement of retained earnings shows beginning retained earnings of $65,000, adding net income and subtracting dividends, resulting in ending retained earnings of $129,500. The balance sheet shows total assets of $789,500 equal to total liabilities and equity.

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1K views10 pages

Exercise 1: On December 31, Bryniuk's Company, The Accounting Records Showed The Following Information

The document provides accounting information for Bryniuk's Company for the year ended December 31. It includes the opening balances for various asset, liability, equity, revenue and expense accounts. It then provides the information to prepare the company's income statement, statement of retained earnings, and balance sheet. The income statement shows revenues of $175,000 and expenses of $90,500, resulting in net income of $84,500. The statement of retained earnings shows beginning retained earnings of $65,000, adding net income and subtracting dividends, resulting in ending retained earnings of $129,500. The balance sheet shows total assets of $789,500 equal to total liabilities and equity.

Uploaded by

John Kenneth Bohol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
  • Exercises: This section provides accounting exercises including income statement and balance sheet preparation tasks for Bryniuk's Company.
  • Problems: Presents problems involving account balances and service company transactions for further practice in accounting analysis.
  • Additional Data: Includes additional financial data and figures needed for solving the exercises and problems stated earlier in the document.

Exercise 1

On December 31, Bryniuk’s Company, the accounting records showed the following
information:

Cash $ 49,500.00 Retained Earnings


Accounts Receivable $ 125,000.00 Dividends
Supplies $ 1,500.00 Service Revenue
Prepaid Insurance $ 12,000.00 Interest Revenue
Equipment $ 70,000.00 Salaries Expense
Building $ 420,000.00 Advertising Expense
Land $ 111,500.00 Insurance Expense
Accounts Payable $ 80,000.00 Utilities Expense
Notes Payable $ 170,000.00 Interest Expense
Common Stock $ 410,000.00

Prepare Bryniuk's Co. Income Statement


Bryniuk’s Company
Income Statement
For Year Ended December 31
Revenues:
Service Revenue $ 174,000.00
Intrest Revenue $ 1,000.00
Total Revenues $ 175,000.00

Expenses:
Salaries Expense $ 52,000.00
Advertising Expense $ 17,000.00
Insurance Expense $ 5,000.00
Utilities Expense $ 13,750.00
Interest Expense $ 2,750.00
Total Expenses $ 90,500.00

Net Income $ 84,500.00

Prepare Bryniuk's Co. Statement of Retained Earnings


Bryniuk’s Company
Statementof Retained Earnings
For Year Ended December 31

Net Income $ 84,500.00


Retained Earnings $ 65,000.00
$ 149,500.00
Dividends $ (20,000.00)
$ 129,500.00

Prepare Bryniuk's Co. Balance Sheet


Bryniuk’s Company
Balance Sheet
December 31
Assets Liabilities and Equity
Cash $ 49,500.00 Accounts payable
Accounts Receivable $ 125,000.00 Notes payable
Supplies $ 1,500.00 Total Liabilities
Prepaid Insurance $ 12,000.00
Equipment $ 70,000.00 Common stock
Building $ 420,000.00 Retained Earnings
Land $ 111,500.00 Total Equity
Total Assets $ 789,500 Total Liabilities and Equity

Exercise 2
For the following accounts: tell if it is an Asset, Liability, Equity, Revenue, or Expense AND if
it is found on the Income Statement, Balance Sheet or Neither

Account Account Type Financial Statement


Accounts payable Liab Balance Sheet
Accounts receivable Asset Balance Sheet
Cash Asset Balance Sheet
Common Stock Equity Balance Sheet
Dividends Equity Neither
Machinery Asset Balance Sheet
Rent expense Expense Income Statement
Retained Earning Equity Balance Sheet
Salaries Expense Expense Income Statement
Service Revenue Revenue Income Statement
Supplies Asset Balance Sheet
Trucks Asset Balance Sheet
Utilities Expense Expense Income Statement

PROBLEM 1
Cast 77 Service Company has the following account balances: Cash, $6,000; Accounts Receivable, $7,000; Prepaid
$950; Equipment, $7,000; Trucks, $10,000; Accounts Payable, $2,700; Common Stock $25,000; Retained Earnings
presented as follows:

1. Company received cash from clients for services, $7,500


2. Cast 77 paid to creditors $600,
3. Paid office rent for the month of December, $950,
4. Company billed client for accounting services on account, $8,200
5. Supplies were purchased on account, $450,
6. Company received cash from clients billed previously, $4,200
7. Cast 77 received an invoice for services from Copy Plus for December (the invoice will be paid next mon
8. Cast 77 paid monthly salaries, $4,700,
9. Utilities expense were paid, $380,
10. Miscellaneous expense were paid, $250,
11. Paid for monthly insurance, $200
12. Dividends were paid, $750.

Cash Accts Rec


Beg. Balances $ 6,000.00 $ 7,000.00
1 $ 7,500.00
2 $ (600.00)
3
4 $ 8,200.00
5
6 $ 4,200.00
7
8 $ 4,700.00
9 $ (380.00)
10 $ (250.00)
11
12 $ (750.00)

Balances $ 20,420.00 $ 15,200.00

Cast 77
Income Statement
For Month Ended December 31
Revenues:
Revenue $ 19,900.00
Total Revenues $ 19,900.00

Expenses:
Rent $ 950.00
Copy Plus $ 550.00
Salaries $ 4,700.00
Utilities $ 380.00
Misc $ 250.00
Insurance $ 200.00
Total Expenses $ 7,030.00

Net Income 12,870

Cast 77
Statementof Retained Earnings
For Month Ended December 31
Beginning Retained Earnings 6,350
Add:  Net Income 12,870

Subtract: Dividends 750

Ending Retained Earnings   18,470

Cast 77
Balance Sheet
December 31
Assets Liabilities and Equity
$ 20,420 Accounts payable
15,200
950 Common stock
1,000 Retained Earnings
1,400 Total Equity
7,000
10,000
Total Assets $ 55,970 Total Liabilities and Equity
wed the following

$ 65,000.00
$ 20,000.00
$ 174,000.00
$ 1,000.00
$ 52,000.00
$ 17,000.00
$ 5,000.00
$ 13,750.00
$ 2,750.00
$ 80,000.00
$ 170,000.00
$ 250,000.00

$ 410,000.00
129,500
$ 539,500.00
$ 789,500

evenue, or Expense AND if


Accounts Receivable, $7,000; Prepaid Rent, 1,900; Prepaid Insurance, $1,200  Supplies,
on Stock $25,000; Retained Earnings $6,350. Business transactions during December are

er (the invoice will be paid next month), $550,

Prepaid Rent Prepd Ins Supplies Equipment Trucks


$ 1,900.00 $ 1,200.00 $ 950.00 $ 7,000.00 $ 10,000.00

$ (950.00)

$ 450.00

$ (200.00)

$ 950.00 $ 1,000.00 $ 1,400.00 $ 7,000.00 $ 10,000.00


$ 3,100

25,000
18,470
43,470

$ 46,570
Accounts Expenses -
Payable Comm stock Dividends Retained Earnings Revenue Amount
$ 2,700.00 $ 25,000.00 $ 6,350.00
$ 7,500.00
$ (600.00)
$ 950.00
$ 8,200.00
$ 450.00
$ 4,200.00
$ 550.00

$ 750.00

$ 3,100.00 $ 25,000.00 $ 750.00 $ 6,350.00 $ 19,900.00 $ 7,030.00


Name Expense

Rent

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