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Accounting for S&R Rentals

1. S&R Rental's rents and services different types of yard-improvement equipment. Information about the company's financial performance is provided below:
Average shares outstanding $15,000
Cost of goods sold $44,000
Debt outstanding $90,000
General and administrative expenses $12,500
Income tax expense $5,300
Interest expense $8,000
Payments to owners $20,000
Rental revenue $41,000
Sales revenue $28,700
Selling revenue $5,150
Service revenue $23,900

Please calculate and enter your answers for the following totals. You should show your calculations:
a. Gross profit
b. Operating expenses
c. Operating income
d. Pretax income
e. Net income
f. Earnings per share

2. Listed below are selected account balances for Bushing Company for June 30:
Accounts payable $29,000
Accounts receivable $11,300
Accumulated depreciation $19,500
Buildings $35,000
Cash $31,000
Contributed capital $30,000
Cost of goods sold $14,600
Equipment $45,000
Interest payable $12,000
Land $40,000
Merchandise inventory $52,400
Notes payable, current portion $13,500
Notes payable, long term $33,500
Prepaid insurance $4,000
Retained earnings $81,100
Supplies on hand $3,900
Trademarks $6,000
Wages expense $22,500
Wages payable $10,000
Please calculate and enter your answers for the following totals. You should show your calculations:
a. Current assets
b. Current liabilities
c. Property, plant, and equipment
d. Total assets
e. Long-term liabilities
f. Total liabilities
g. Total stockholder's equity
h. Total liabilities and stockholders' equity

3. Stratfield Inc. reported the following selected information for its 2008 fiscal year.
Contributed capital at December 31,2007 $16,500
Retained earnings at December 31,2007 $11,300
Dividends $3,000
Net income $12,980
Common stock issued in 2008 $4,000
Prepare a statement of stockholders' equity for Stratfield Inc. for the year ended December 31,2008. Left align everything so that the formatting can be retained.

4. A list of financial statement items is given below.
a. Accounts receivable
b. Rent payable
c. Retained earnings
d. Cost of sales
e. Prepaid rent
f. Supplies expense
g. Equipment
h. Dividends
i. Depreciation expense
j. Copyrights
k. Accrued liabilities
l. Wages payable
m. Land
n. Notes payable
o. Service revenue
p. Inventory
q. Advertising expense
r. Common stock
s. Cash
t. Gross profit

Identify which of the statements each of these accounts belongs on by using the following codes: I=income statement, B=balance sheet, SE=statement of stockholders' equity. Two of the accounts will have more than one statement on which they will actually appear. You should just enter the lettered item (such as a,b,c,etc.) and the answer (B,I, or SE) into the answer box.


Solution Summary

This solution provides assistance with the accounting problems for S&R Rentals.