The following transactions occurred during the twelve-month accounting period ending December 31, 2016 for Hammerhead, Inc. ("Corporation"). Be sure to include in your analysis any adjusting journal entries that may be required at year end.

 

On January 1, the Owners initially capitalized the Corporation by contributing Cash to the Corporation for 100 shares of common stock with a market price of $10,000 per share.

 

On March 1, the Corporation purchased Land for $250,000, financed by signing a one-year $250,000 Promissory Note. The annual rate of interest on the Note is 12%. Interest and Principal will be paid at maturity on March 1, 2017

 

 On July 1, the Corporation received an advance cash payment of $500,000 from a customer for services the Corporation will render at the same rate each month for the next 12 months ($41,666.67 each month from July 1, 2016 through June 30, 2017).

 

During 2016, the Corporation incurred Operating Expenses of 200,000 ($150,000 were paid in cash and $50,000 were on account and remained unpaid at December 31, 2016).

 

What are the total amount of Assets of Corporation at December 31, 2016?

 

What are the total Liabilities of the Corporation at December 31, 2016?

 

What is the total Owner's Equity of the Corporation at December 31, 2016?

 

What is the Net Income of the Corporation for the period ending December 31, 2016?

 

Answer rating: 100% (QA)

Hammerhead Inc YearEnd Analysis 2016 Transactions Analysis 1 Capital Stock Debit Cash 1000000 100 sh... View the full answer