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3 Assignments on preparing the statement of cashflow, Closing Entries and Statement of cashflow
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Required: Minnetonka, Inc. is looking for an accountant who can help the manager to prepare financial statemen
The following financial statements are provided by the accounting manager:
Minnetonka Inc.
Income Statement
For the Year Ended December 31, 2023
Total Revenues
$ 157,000.00
Cost of Goods Sold
$
65,000.00
Gross Profit
$
92,000.00
Operating Expenses
– Salaries Expense
$ 15,000.00
– Depreciation Expense
$
1,500.00
– Insurance expense
$
6,000.00
– Rent expense
$
2,500.00
– Utilities expense
$
850.00
– Miscellaneous expenses $
50.00
Total Operating Expenses
$
25,900.00
Operating Profit
$
66,100.00
Interest expense
$
250.00
Net Income
$
65,850.00
e manager to prepare financial statements. The manager is specifically looking for someone who understands how to prepare
nting manager:
Minnetonka Inc.
Statement of Retained Earnings
For the Year Ended December 31, 2023
Retained Earnings, January 1, 2012
$ 31,000.00
Add: Net Income
$ 65,850.00
Subtotal
$ 96,850.00
Less: Dividends
$
8,000.00
Retained Earnings, December 31, 2012
$ 88,850.00
Fixed Assets purchased during the year:
Land
Equipment
$
$
30,000.00
5,000.00
oking for someone who understands how to prepare the statement of cash flows.
Minnetonka Inc.
Balance Sheet
December 31, 2022, 2023
ASSETS
CURRENT ASSETS:
Cash
Accounts Receivable
Supplies
Inventory
Prepaid expense
Total Current Assets
2023
$ 38,350.00
$ 25,000.00
$
8,500.00
$ 27,500.00
$
2,000.00
$ 101,350.00
$
$
$
$
$
$
2022
8,500.00
14,500.00
2,000.00
21,000.00
4,000.00
50,000.00
PROPERTY, PLANT, AND EQUIPMENT
Land
Building (Net of Accumulated Depreciation)
Equipment (Net of Accumulated Depreciation)
Total Fixed Assets
$
$
$
$
$
$
$
$
13,000.00
8,000.00
21,000.00
Total Assets
$ 155,850.00 $
71,000.00
30,000.00
12,000.00
12,500.00
54,500.00
Minnetonka Inc.
Balance Sheet
mber 31, 2022, 2023
LIABILITIES
CURRENT LIABILITIES:
Accounts Payable
Salaries Payable
Accrued liabilities
Total Current Liabilities
$
$
$
$
2023
10,000.00
5,000.00
7,000.00
22,000.00
$
$
$
$
2022
20,000.00
5,000.00
25,000.00
LONG-TERM LIABILITIES:
Bonds Payable
Notes Payable
Total Long-Term Liabilities
$
$
$
10,000.00 $
5,000.00 $
15,000.00 $
5,000.00
5,000.00
STOCKHOLDERS’ EQUITY
Common Stock
Retained Earnings
Total Stockholders’ Equity
Total Liabilities & Stockholders’ Equity
$
$
$
$
30,000.00
88,850.00
118,850.00
155,850.00
10,000.00
31,000.00
41,000.00
71,000.00
$
$
$
$
Minnetonka Inc.
Statement of Cash Flow
For the Month Ended December 31, 2023
Cash Flows From Operating Activities
Net Income
Adjustments to Net Income:
Depreciation expense
Increase in Accounts Receivable
Increase in Supplies
Increase in Inventory
Decrease in Prepaid Expense
Decrease in Accounts Payable
Increase in Salaries Payable
Increase in Accrued Liabilities
Net Cash Provided by Operating Activities
Cash Flows From Investing Activities
Purchase of Land
Purchase of Equipment
Net Cash Used in Investing Activities
Cash Flows From Financing Activities
Increase in Bonds Payable
Payment of Dividends
Issuance of Common Stock
Net Cash Provided by Financing Activities
Net increase (decrease) in cash during the year
Beginning Cash balance
Ending Cash balance
Required:
Minneapolis, Inc. is a small shop in the neighborhood that sells fruit. The owner of the shop, Ms. Foster, hired yo
Ms. Foster was able to finish the financial statement except the statement of cash flow so she asked you to prep
Ms. Foster prepared the following financial statements.
Minneapolis Inc.
Income Statement
For the Month Ended December 31, 2023
Total Revenues
Cost of Goods Sold
$
$
Gross Profit
$ 205,000.00
Operating Expenses
– Salaries Expense
– Depreciation Expense
– Insurance expense
– Rent expense
– Utilities expense
– Miscellaneous expenses
Total Operating Expenses
455,000.00
250,000.00
$ 18,000.00
$ 20,000.00
$ 8,000.00
$ 3,000.00
$ 2,500.00
$
500.00
$
52,000.00
Operating Profit
$ 153,000.00
Interest income
$
Net Income
$ 161,000.00
8,000.00
The owner of the shop, Ms. Foster, hired you to help with her accounting. The previous accountant got married and left the company.
ement of cash flow so she asked you to prepare the statement of cash flow as your first job.
Minneapolis Inc.
Statement of Retained Earnings
For the Month Ended December 31, 2023
Retained Earnings, January 1, 2023
Add: Net Income
Subtotal
Less: Dividends
Retained Earnings, December 31, 2023
$
$
$
$
$
333,500.00
161,000.00
494,500.00
15,500.00
479,000.00
Fixed assets purchased during the year:
Building
Equipment
$
$
45,000.00
20,000.00
ng. The previous accountant got married and left the company.
low as your first job.
Minneapolis Inc.
Balance Sheet
December 31, 2022 & 2023
ASSETS
CURRENT ASSETS:
2023
2022
Cash
Accounts Receivable
Supplies
Inventory
Prepaid expense
$
$
$
$
$
98,500.00
65,000.00
65,000.00
409,000.00
86,000.00
$
$
$
$
$
25,000.00
45,000.00
30,000.00
450,000.00
75,000.00
Total Current Assets
$
723,500.00 $
625,000.00
Land
Building
Accumulated depreciation – building
Equipment
Accumulated depreciation – equipment
$
$
$
$
45,500.00 $
170,000.00 $
(55,000.00) $
60,000.00 $
(20,000.00)
45,500.00
125,000.00
(40,000.00)
40,000.00
(15,000.00)
Total Fixed Assets
$
200,500.00 $
155,500.00
Total Assets
$
924,000.00 $
780,500.00
FIXED ASSETS:
Minneapolis Inc.
Balance Sheet
December 31, 2022 & 2023
LIABILITIES
CURRENT LIABILITIES:
2023
2022
Accounts Payable
Salaries Payable
Accrued liabilities
$
$
$
35,000.00 $
18,000.00 $
12,000.00 $
70,000.00
12,000.00
10,000.00
Total Current Liabilities
$
65,000.00 $
92,000.00
Bonds Payable
Notes Payable
$
$
80,000.00 $
90,000.00 $
100,000.00
75,000.00
Total Long-term Liabilities
$
170,000.00 $
175,000.00
Common Stock
Retained Earnings
$
$
210,000.00 $
479,000.00 $
180,000.00
333,500.00
Total Stockholders’ Equity
$
689,000.00 $
513,500.00
Total Liabilities & Stockholders’ Equity
$
924,000.00 $
780,500.00
LONG-TERM LIABILITIES;
STOCKHOLDERS’ EQUITY
Minneapolis Inc.
Statement of Cash Flow
For the Month Ended December 31, 2023
Cash Flows From Operating Activities
Net Cash Provided by Operating Activities
Cash Flows From Investing Activities
Net Cash Used in Investing Activities
Cash Flows From Financing Activities
Net Cash Used in Financing Activities
Net increase (decrease) in cash during the year
Beginning Cash balance
Ending Cash balance
Operating Activities
Net Income
Depreciation Expense
Current Assets (always opposite)
Current Liabilities
Investing Activities
Long term assets (always opposite)
Financing Activities
Items from owners equity
Items from long term liabilities
Will not include retained earnings
**Remember that the ending cash balance on this sheet should match the ending cash balance on the 2023 bala
ing cash balance on the 2023 balance sheet.
Watermelon Inc. sells juices and ice cream and provides birthday party planner for children.
Watermelon Inc. presents its adjusted trial balance at December 31, 2023 below.
Watermelon Inc.
Adjusted Trial Balance
December 31, 2023
Debit
Cash
$ 8,500.00
Accounts Receivable
$ 5,000.00
Allowance for Doubtful Accounts
Supplies
$ 1,750.00
Inventory
$ 12,000.00
Prepaid Insurance
$ 2,000.00
Prepaid Rent
$ 4,000.00
Equipment
$ 9,000.00
Accumulated Depreciation – Equipment
Cars
$ 21,000.00
Accumulated Depreciation – Cars
Accounts Payable
Unearned Service Revenue
Common Stock
Retained Earnings
Dividends
$ 4,000.00
Sales Revenue
Service Revenue
Salaries Expense
$ 6,000.00
Utility Expense
$ 2,000.00
Insurance Expense
$ 1,000.00
Office Expense
$
600.00
Rent Expense
$ 3,000.00
Advertising Expense
$
750.00
Depreciation Expense
$
550.00
Supplies Expense
$ 3,500.00
Bad Debt Expense
$
450.00
Miscellaneous Expense
$
50.00
Total $ 85,150.00
Prepare the following to enter into January 2024.
Credit
$
1,000.00
$
2,500.00
$ 9,000.00
$ 1,100.00
$
900.00
$ 4,000.00
$ 13,000.00
$ 24,500.00
$ 29,150.00
$ 85,150.00
Required:
1
2
3
4
5
6
7
Close the revenue account.
Close the expense accounts.
Close income Summary.
Close the dividend account.
Post the transactions to the General Ledger.
Calculate the Ending Retained Earnings Balance.
Prepare the Post-Closing Trial Balance.
Date
Account
Dr
Cr
Sales Revenues
Service Revenues
Rent Expense
Advertising Expense
Dividends
Income Summary
Salary Expense
Utility Expense
Insurance Expense
Depreciation Expense
Supplies Expense
Bad Debt Expense
Retained Earnings
Insurance Expense
Office Expense
Bad Debt Expense
Miscellaneous Expense
Watermelon Inc.
Post-Closing Trial Balance
December 31, 2023
Debit
Total
$
Credit
–
$
–
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