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Chapter $1$ Homework Assignment

Chapter $1$ Homework Assignment $($i$)$

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On January $1,$ Year $2,$ the following information was drawn from the accounting records of Carter Company: cash of $$575$; land of $$2,925$; notes payable of $$875$; and common stock of $$1,750.$

Required

a$.$ Determine the amount of retained earnings as of January $1,$ Year $2.$

b$.$ After looking at the amount of retained earnings, the chief executive officer $($CEO$)$ wants to pay a $$675$ cash dividend to the stockholders. Can the company pay this dividend?

c$.$ As of January $1,$ Year $2,$ what percentage of the assets were acquired from creditors?

d$.$ As of January $1,$ Year $2,$ what percentage of the assets were acquired from investors?

e$.$ As of January $1,$ Year $2,$ what percentage of the assets were acquired from retained earnings?

f$.$ Create an accounting equation using percentages instead of dollar amounts on the right side of the equation.

g$.$ During Year $2,$ Carter Company earned cash revenue of $$800,$ paid cash expenses of $$450,$ and paid a cash dividend of $$65.$ Record these events under an accounting equation before preparing the statements.

g$-1.$ Prepare an income statement dated December $31,$ Year $2.$

g$-2.$ Prepare a statement of changes in stockholders' equity dated December $31,$ Year $2.$

g$-3.$ Prepare a balance sheet dated December $31,$ Year $2.$

g$-4.$ Prepare a statement of cash flows dated December $31,$ Year $2.$

j$.$ What is the balance in the Revenue account on January $1,$ Year $3?$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req A and $B$ Req $C$ to $E$

Req $F$

Req G

Req G$1$

Req G$2$

Req G$3$

Req G$4$

Req J

As of January $1,$ Year $2,$ what percentage of the assets were acquired from creditors, investors and retained earnings?

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