recod adjustments and prepare financial statements lo 1 2 3 4 495393

Transactions for Pops Company for 2011 were as follows:

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a. The owners started the business as a corporation by contributing $3,000 cash in exchange for common stock.

b. The company purchased office equipment for $8,000 cash and land for $15,000 cash

c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.

d. The company purchased $890 worth of supplies for cash

e. The company paid $6,000 in cash for other opearating expenses

f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however is not until January 4, 2012

g. Only $175 worth of supplies was left at the end of the year.

The office equipment was purchased on January 1 and is expected to last for 8 years ( straightline depreciation no salvage value)

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Sheet3 Sheet2 Sheet1 A B C D E G H Name Section F End of Problem Date A s s e t s = Cash Balance Sheet Income Statement Revenue Expenses Net Income Assets Liabilities Total assets Total Total Beginning contributed capital Ending contributed capital Statement of Cash Flows Cash from operating activities Cash from investing activities Cash from financing activities Cash collected from customers Cash paid for expenses Total cash from operations Salary expense Net increase in cash Shareholder’s Equity Supplies Equipment Land Liabilities + A/R Wages Pay. Adj. 1 Adj. 2 Adj. 3 Accum. Depr. Pops Company Operating expenses Supplies expense Depreciation expense Statement of Changes in Shareholder’s Equity Net income for the year Current assets Total current assets Equipment-net Current liabilities Wages payable Total current liabilities Shareholder’s equity Common stock Retained earnings Total shareholder’s equity Purchase of equipment Purchase of land Sale of common stock Cash paid to vendors Contributions during the year Beginning retained earnings Ending retained earnings I J K Problem 3-64A a. b. c. d. e. For the Year Ended December 31, 2011 December 31, 2011 Amount Title Kenneth Reimers, Financial Accounting 3e 5.00 6.00 2011.00 7.00 8.00 8000.00 15000.00 9.00 6000.00 10.00 890.00 11.00 12.00 2480.00 13.00 -715.00 14.00 -1000.00 15.00 0.00 6000.00 175.00 8000.00 -1000.00 15000.00 2480.00 0.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 $0.00 25.00 26.00 27.00 28.00 29.00 $0.00 30.00 31.00 Amount 32.00 33.00 $0.00 34.00 35.00 36.00 37.00 38.00 39.00 40.00 41.00 42.00 43.00 44.00 $0.00 45.00 46.00 $0.00 47.00 48.00 $0.00 49.00 $0.00 $0.00 50.00 51.00 52.00 53.00 54.00 55.00 56.00 57.00 58.00 $0.00 59.00 60.00 61.00 62.00 $0.00 63.00 $0.00 64.00 $0.00 65.00 66.00 CyberCoach: This…

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