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    Interrelationships among Financial Statements; O'Shea Enterprises

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    Interrelationships among Financial Statements

    O'Shea Enterprises started the 2002 accounting period with $30,000 of assets (all cash), $18,000 of liabilities, and $4,000 of common stock. During the year, O'Shea earned cash revenues of $48,000, paid cash expenses of $32,000, and paid a cash dividend to stockholders of $2,000. O'Shea also acquired $10,000 of additional cash from the sale of common stock and paid $6,000 cash to reduce the liability owed to a bank.

    CHECK FIGURES
    a. Net Income: $16,000
    b. Total Assets: $48,000

    Required
    1. Prepare an income statement, statement of changes in stockholders' equity, period-end balance sheet, and statement of cash flows for the 2002 accounting period. (Hint: Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements.)

    O'Shea Enterprises
    Income Statement
    For the Year Ended December 31, 2005

    Revenues $
    Expenses
    Net income $

    O'Shea Enterprises
    Statement of Changes in Stockholders' Equity
    For the Year Ended December 31, 2005

    Beginning Common stock $
    Plus: Investments
    Ending Common stock $

    Beginning Retained Earnings $
    Plus: Net Income
    Less: Dividends
    Ending Retained Earnings

    Total Stockholders' Equity $

    O'Shea Enterprises
    Balance Sheet
    As of December 31, 2005

    Assets:
    Cash $
    Total Assets $

    Liabilities:
    Note payable $
    Total Liabilities

    Stockholders' Equity:
    Common stock $
    Retained Earnings ____________
    Total Stockholders' Equity

    Total Liabilities and Stockholders' Equity $

    O'Shea Enterprises
    Statement of Cash Flows
    For the Year Ended December 31, 2005

    Cash Flows from Operating Activities:
    Cash Receipts from Revenue $
    Cash Payments for Expenses
    Net Cash Flow from Operating Activities $

    Cash Flow from Investing Activities:

    Cash Flows from Financing Activities:
    Cash Receipts from Owners' Investments
    Cash Receipts from Borrowed Funds
    Cash Payments for Dividends
    Net Cash Flow from Financing Activities

    Net Increase in Cash $

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    https://brainmass.com/business/financial-statements/interrelationships-among-financial-statements-o-shea-enterprises-180266

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    Solution Summary

    The solution presents fully prepared financial statements including the income statement, the balance sheet and the statement of cash flows for O'Shea Enterprises for 2005. Check figures are included.

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