The Charter Company's total assets are equal to $700,000 and its equity is $420,000. What is the amount of your debts? 

B. Martin Marine's total assets are equal to $500,000 and its liabilities and equity amounts are equal. What is the amount of your debts? What is the amount of equity capital? 

2. Identifying Financial Statements (10 points) Specify in which financial statement each item will appear: income statement (I), balance sheet (B), statement of equity (E), or cash flow statement (CF). 

• A. Assets 

• b. Cash from operating activities 

• c. Withdrawal 

• d. Equipment 

• e. Expenses 

• f. Obligations 

• g. Net decrease (or increase) in cash 

• h. Incomes 

• i. Total liabilities and equity 

3. Analyze debits or credits by account (10 points) For each of the accounts below, determine whether the debits or credits meet the specified change. 

1. Increasing Land 

2. Decreasing Cash

 3. Increasing Earned Fees (Revenues) 

4. Increasing Office Expenses 

5. Decreasing Unearned Income 

6. Decreasing Prepaid Rent 

7. Increasing Debt Securities 

8. Decreasing Receivables 

9 .Increasing Owner, Capital 

10. Store Upgrade Equipment 

4. Calculating cash and accrual income (10 points) Roma Co. generated $45,000 in revenue in its first year of operation and received $37,000 in cash from these customers. The company had spent $25,500 but had not paid $5,250 of it at year's end. The company also made an upfront payment of $6,750 for expenses that will not be incurred until next year. Calculate the first year's net income on both a cash basis and an accounting accrual basis. 

5. Determination of inventory costs (10 points) A $5,000 cost was incurred to purchase goods and have them ready for sale. The goods were sent to the buyer (FOB shipping point) at a cost of $ 200. Additional necessary expenses of $400 were incurred to obtain the goods. What is the total cost of the buyer's inventory of goods? 

6. Prepare financial statements (45 points) On October 1st, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. 

5. Determination of inventory costs (10 points) A $5,000 cost was incurred to purchase goods and have them ready for sale. The goods were sent to the buyer (FOB shipping point) at a cost of $ 200. Additional necessary expenses of $400 were incurred to obtain the goods. What is the total cost of the buyer's inventory of goods? 

6. Prepare financial statements (45 points) On October 1st, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. 

5. Determination of inventory costs (10 points) A $5,000 cost was incurred to purchase goods and have them ready for sale. The goods were sent to the buyer (FOB shipping point) at a cost of $ 200. Additional necessary expenses of $400 were incurred to obtain the goods. What is the total cost of the buyer's inventory of goods? 6. Prepare financial statements (45 points) On October 1st, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. cost was incurred. The goods were sent to the buyer (FOB shipping point) at a cost of $ 200. Additional necessary expenses of $400 were incurred to obtain the goods. What is the total cost of the buyer's inventory of goods? 

6. Prepare financial statements (45 points) On October 1st, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. cost was incurred. The goods were sent to the buyer (FOB shipping point) at a cost of $ 200. Additional necessary expenses of $400 were incurred to obtain the goods. What is the total cost of the buyer's inventory of goods? 

6. Prepare financial statements (45 points) On October 1st, Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. de Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts. Use this information to prepare an October income statement, equity statement, and balance sheet for the business. de Ebony Ernst organized Ernst Consulting; On October 3, the owner contributed $84,000 worth of assets to start the business. The records of the company on 31 October show the following items and amounts.

Required:

 Use above information to prepare an October income statement, equity statement, and balance sheet for the business.

Answer rating: 100% (QA)

Solution A The Charter Companys total assets are equal to 700000 and its equity is 420000 Therefore ... View the full answer