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    Financial and Managerial Accounting

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    The financial statements for Atlas Realty's first month of operations are incomplete, with missing values in various sections. Key missing figures include wages expense of $208,000, net income of $112,000, beginning retained earnings of $96,000, capital stock of $160,000, retained earnings of $16,000, and cash received from customers of $400,000. The document provides the incomplete financial statements and asks the reader to determine the missing values by analyzing the relationships between the statements.

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    Financial and Managerial Accounting

    Uploaded by

    cons the
    164 views1 page
    The financial statements for Atlas Realty's first month of operations are incomplete, with missing values in various sections. Key missing figures include wages expense of $208,000, net income of $112,000, beginning retained earnings of $96,000, capital stock of $160,000, retained earnings of $16,000, and cash received from customers of $400,000. The document provides the incomplete financial statements and asks the reader to determine the missing values by analyzing the relationships between the statements.

    Original Description:

    Financial and Managerial Accounting (79)

    Original Title

    Financial and Managerial Accounting (79)

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    The financial statements for Atlas Realty's first month of operations are incomplete, with missing values in various sections. Key missing figures include wages expense of $208,000, net income of $112,000, beginning retained earnings of $96,000, capital stock of $160,000, retained earnings of $16,000, and cash received from customers of $400,000. The document provides the incomplete financial statements and asks the reader to determine the missing values by analyzing the relationships between the statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    164 views1 page

    Financial and Managerial Accounting

    Uploaded by

    cons the
    The financial statements for Atlas Realty's first month of operations are incomplete, with missing values in various sections. Key missing figures include wages expense of $208,000, net income of $112,000, beginning retained earnings of $96,000, capital stock of $160,000, retained earnings of $16,000, and cash received from customers of $400,000. The document provides the incomplete financial statements and asks the reader to determine the missing values by analyzing the relationships between the statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Chapter 1 Introduction to Accounting and Business

    45

    3. Prepare an income statement for November, a retained earnings statement for Novem-
    ber, and a balance sheet as of November 30.
    4. (Optional). Prepare a statement of cash flows for November.

    PR 1-6B  Missing amounts from financial statements OBJ. 5


    i. $208,000 The financial statements at the end of Atlas Realty’s first month of operations are shown
    below.

    Atlas Realty
    Income Statement
    For the Month Ended May 31, 2014
    Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000
    Expenses:
    Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $     (a)
    Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000
    Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,600
    Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,400
    Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     4,800
    Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288,000
    Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (b)

    Atlas Realty
    Retained Earnings Statement
    For the Month Ended May 31, 2014
    Retained earnings, May 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $      (c)
    Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $     (d)
    Less dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       (e)
    Increase in retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (f )
    Retained earnings, May 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $     (g)

    Atlas Realty
    Balance Sheet
    May 31, 2014
    Assets Liabilities
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . $123,200 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . $48,000
    Supplies . . . . . . . . . . . . . . . . . . . . . . 12,800 Stockholders’ Equity
    Land . . . . . . . . . . . . . . . . . . . . . . . . . . (h) Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . $     (j)
    Total assets . . . . . . . . . . . . . . . . . . . . $      (i) Retained earnings . . . . . . . . . . . . . . . . . . . . . . (k)
    Total stockholders’ equity . . . . . . . . . . . . . . . (l)
    Total liabilities and stockholders’ equity . . . . . . $ (m)

    Atlas Realty
    Statement of Cash Flows
    For the Month Ended May 31, 2014
    Cash flows from operating activities:
    Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $       (n)
    Deduct cash payments for expenses and payments to creditors . . . . . . (252,800)
    Net cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . $    (o)
    Cash flows from investing activities:
    Cash payments for acquisition of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (120,000)
    Cash flows from financing activities:
    Cash received from issuing capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000
    Deduct cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (64,000)
    Net cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (p)
    Net increase (decrease) in cash and May 31, 2014, cash balance . . . . . . . $       (q)

    Instructions
    By analyzing the interrelationships among the four financial statements, determine the
    proper amounts for (a) through (q).

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