ACCT 212 Week 1 Homework Assignment (100% correct answers) v2

1. Question: Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $50,000; Liab ilities = $27,000; Dividends = $3,000; Revenues = $14,000; Expenses = $9,000. Required: 1. Calculate net income. 2. Calculate stockholders’ equity at the end of the period. 2. Question: Below are the account balances for a company at the end of December. Accounts Balances Cash $ 4,000 Salaries expense 1,500 Accounts payable 2,000 Retained earnings 4,400 Utilities expense 1,000 Supplies 12,400 Service revenue 7,900 Common stock 4,600 Required: Use only the appropriate accounts to prepare an income statement. 3. Question: At the beginning of the year (January 1), a company has $10,000 of common stock outstanding and retained earnings of $7,500. During the year, the company reports net income of $7,800 and pays dividends of $2,500. In addition, the company issues additional common stock for $7,300. Required: Prepare the statement of stockholders’ equity at the end of the year (December 31). 4. Question: A company has the following account balances at the end of the year. Accounts Balances Equipment $16,500 Accounts payable 1,100 Salaries expense 23,500 Common stock 11,000 Land 8,500 Notes payable 10,500 Service revenue 29,500 Cash 4,100 Retained earnings ? Required: Use only the appropriate accounts to prepare a balance sheet. 5. Question: Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, the company reports the following amounts: Cash $ 1,300 Service revenue $70,200 Equipment 21,500 Cost of goods sold (food expense) 53,900 Accounts payable 2,900 Buildings 25,000 Delivery expense 3,100 Supplies 1,900 Salaries expense 6,000 Salaries payable 900 In addition, the company had common stock of $25,000 at the beginning of the year and issued an additional $2,500 during the year. The company also had retained earnings of $11,200 at the beginning of the year. Required: 1. Prepare the income statement for Longhorn Corporation. 2. Prepare the statement of stockholders’ equity for Longhorn Corporation. 3. Prepare the balance sheet for Longhorn Corporation.