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    Accounting for S&R Rentals

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    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.

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    Solution Summary

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