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S&R Rentals rents and services different types of yard-impro

The following document contains some brain teasers randomly selected for another study template by my peers for an upcoming study session

1. S&R Rentals rents and services different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period is provided below:
Average shares outstanding $ 15,000
Costs of goods sold $ 44,000
Debt outstanding $ 90,000
General and administrative expenses $ 12,500
Income tax expense $ 5,300
Interest expense $ 8,800
Payments to owners $ 20,000
Rental revenue $ 41,000
Sales revenue $ 28,700
Selling expense $ 5,150
Service revenue $ 23,900

Calculate and total the answers for the following: Please show your work.
a. Gross profit
b. Operating expense
c. Operating income
d. Pretax income
e. Net income
f. Earnings per share

2. Listed below are 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
Costs 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
Wage expense $ 22,500
Wage payable $ 10,000

Calculate and total the answers for the following: Please show your work.

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 stockholder's equity

3. Stratfield Inc. reported the following selected information for its 2008 fiscal year:
Contributed capital for December 31, 2007 $ 16,500
Retained earnings for December 31, 2007 $ 11,300
Dividends $ 3,000
Net income $ 12,980
Common stock issued in 2008 $ 4,000

Prepare a statement of stockholder's equity for the year ended December 31, 2008. Please left-align everything so that the formatting can be easily obtained.

4. A list of financial statements 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 stockholder's equity
Two of the accounts will have more than one statement on which they will actually appear

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Solution Summary

S&R Rentals rents and services different types of yard-improvement equipment. Information about the company's financial performance for a recent fiscal period is provided below:

$2.19