Explore BrainMass

Explore BrainMass

    financial analysis -assets and liabilities

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The amounts of the assets and liabilities of Inkjet Supply Co. as of December 31, 19X4, and the revenues and expenses of the company for the year ended on that date follow. The items are listed in alphabetical order.

    Accounts payable........................................................................$12, 000
    Accounts receivable..................................................................... 3, 000
    Building ..........................................................................................56, 000
    Cash ................................................................................................ 1, 000
    Equipment ....................................................................................21, 000
    Interest expense........................................................................... 4, 000
    Interest payable........................................................................... 1, 000
    Land................................................................................................ 8, 000

    Note payable................................................................................. 31, 000
    Property tax expense.................................................................. 2, 000
    Rent expense.............................................................................. 14, 000
    Salary expense.............................................................................. 38, 000
    Service revenue ........................................................................ 104, 000
    Supplies.......................................................................................... 7, 000
    Utilities expense........................................................................... 3, 000

    The beginning amount of Jana Sneller, Capital was $41, 000 and during the year Sneller withdrew $32, 000 for personal use.

    Prepare the income statement of Inkjet Supply Co. for the year ended December 31, 19X4.

    Prepare the company's statement of owner's equity for the year ended December 31, 19X4.

    Prepare the company's balance sheet at December 31, 19X4.

    Was the result of operations for the year a profit or a loss? How much?

    Did Sneller, the owner of the business, drain off all its earnings for the year, or did she build the company's capital during the period? How would her actions affect the company's ability to borrow in the future?

    How much in total economic resources does the company have as it moves into the new year? How much does the company owe? What is the dollar amount of Sneller's equity interest in the business at the end of the year?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:44 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-liabilities/financial-analysis-assets-and-liabilities-8876

    Solution Preview

    Hi there,
    <br>
    <br>Please see the attached Excel document.
    <br>
    <br>Here's a few more websites to ...

    Solution Summary

    This problem involves the fundamentals of accounting

    $2.49

    ADVERTISEMENT