Gossett Company had the following balances in its accounting records as of December 31, 2015:

The following accounting events apply to Gossett for 2016:
Jan. 1 Acquired an additional $30,000 cash from the issue of common stock.
April 1 Paid $7,200 cash in advance for a one-year lease for office space.
June 1 Paid a $5,000 cash dividend to the stockholders.
July 1 Purchased additional land that cost $40,000 cash.
Aug. 1 Made a cash payment on accounts payable of $21,000.
Sept. 1 Received $9,600 cash in advance as a retainer for services to be performed monthly during the next eight months.
Sept. 30 Sold land for $20,000 cash that had originally cost $20,000.
Oct. 1 Purchased $1,200 of supplies on account.
Dec. 31 Earned $75,000 of service revenue on account during the year.
31 Received $62,000 cash collections from accounts receivable.
31 Incurred $27,000 other operating expenses on account during the year.
31 Recognized accrued salaries expense of $18,000.
31 Had $100 of supplies on hand at the end of the period.
31 The land purchased on July 1 had a market value of $56,000.
31 Recognized $120 of accrued interest revenue.
Required
Based on the preceding information for Gossett Company answer the following questions. All questions pertain to the 2016 financial statements.
a. What two additional adjusting entries need to be made at the end of the year?
b. What amount would be reported for land on the balance sheet?
c. What amount of net cash flow from operating activities would be reported on the statement of cash flows?
d. What amount of rent expense would be reported on the income statement?
e. What amount of total liabilities would be reported on the balance sheet?
f. What amount of supplies expense would be reported on the income statement?
g. What amount of unearned revenue would be reported on the balance sheet?
h. What amount of net cash flow from investing activities would be reported on the statement of cash flows?
i. What amount of total expenses would be reported on the income statement?
j. What total amount of service revenue would be reported on the income statement?
k. What amount of cash flows from financing activities would be reported on the statement of cash flows?
l. What amount of net income would be reported on the income statement?
m. What amount of retained earnings would be reported on the balance sheet?

Transcribed Image Text:

Liabilities and Equity Accounts Payable Common Stock Retained Earnings Assets Cash Accounts Receivable Land 60,000 45,000 35,000 $140,000 32,000 60,000 48,000 $140,000 Totals