CHAPTER 1 Business Decisions and Financial Accounting Lo1-2 L012 IN| Tootsie Rott Il] 1012 General Mills 101-2 Oakley, Inc L012 M1-5 Matching Financial Statement Items to Balance Sheet and Income Statement Categories For each item, indicate (1) whether itis reported on the income statement (VS) ot bala sheet (B/S) and (2) the type of account (A = asset, L = liability, SE = stockholders’ equ (trom (1) Statement (2) Account Type 1. Accounts Receivable 2 Sales Revenue pment 4 Supplies Expense 5 Cash 6 Advertsing Expense. 7. Recounts Payable 8 Retsined Earrings M16 Matching Financial Statement Items to Balance Sheet and Income Statement Categories Tootsie Roll Industries manufactures and sells more than 64 million Tootsie Rolls and 20 mil- lion Tootsie Roll Pops each day. The following statement and balance shect. For each item, indicate (1) the type of account (A = asset, L = liabil- ity, SE = stockholders’ equity, R = revenue, E = expense) and (2) whether it is reported on the income statement (US) or balance sheet (B/S) 1. Accounts Receivable 6. Sales Revenue 2. Office Expenses 7. Notes Payable 3, Cash 8, Retained Earnings 4. Equipment 9. Accounts Payable 5. Advertsing Expense 1-7 Matching Financial Statement Items to Balance Sheet and Income Statement Categories General Mills is a manufacture of food products, such as Lucky Charms cereal, Pillsbury crescent rolls, and Green Giant vegetables. The following items were presented in the company’s financial statements. For each item, indicate (1) the type of account (A = asset, = liability, SE = stock- holders’ equity, R = revenue, E = expense) and (2) whether itis reported on the income statement (US) or balance sheet (B/S). 1. Accounts Payable 6. Cash 2. Common Stock 7. Retained Earnings 3. Equipment 8, Office Expenses 4, Accounts Receivable 9. Sales Revenue 8, Notes Payable 10. Supplies 1-8 Matching Financial Statement Items to the Basic Financial Statements. Oakley, Ine., reported the following items in its financial statements. For each item, indi cate (1) the type of account (A = asset, L = liability, SE = stockholders’ equity, R= reve mie, E = expense, D = dividend) and (2) whether its reported on the income statement (US), statement of retained earnings (SRE), and/or balance sheet (B/S) 1. Dividends 5. Cash 2, Common Stock 6. Note Payable 3, Sales Revenue 7. Accounts Payable 4, Equipment 8, Retained Eamings, Beginning of Year 1-9 Matching Financial Statement Items to the Four Basic Financial Statements Match cach clement with is finaneial statement by entering the appropriate letter in the space providedCHAPTER 1 Business Decisions and Financial Accounting Required: Lientfy an appropriate label (account name) for each item as it would be reported in the company’s financial statements. Choose from the following: Accounts Payable, Accounts Receivable, Cash, Common Stock, Dividends, Land, Notes Payable, Sales Revenue, Supplies, and Supplies Expense ‘lassi each item as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), o¢ expense (E). LG Preparing an Income Statement and Inferring Missing Values mark Holdings, Inc., operates movies and food concession counters throughout the United. Sates. Its income statement for the quarter ended September 30, 2013, reported the following, alphabetically in thousands): Admissions Revenue Office Expenses Concessions Expenses Soleries nd Wages Expense Concessions Revenue Rent Expense Fir Rental Expenses Total Expenses Netincome ined AL Solve for the missing amounts and prepare an income statement for the quarter ended September 30, 2013, 2 What are Cincmark’s main sourve of revenue and two biggest expenses? {+7 Preparing an Income Statement Home Realty, Incorporated, has been operating for three years and is owned by three inves- tuys. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managi tiecutive in charge. On December 31, the following financial items for the entire year were termined: sales revenue, $166,000; salaries and wages expense, $97,000; interest expense, 194300; advertising expenses, $9,025; and income tax expense, $18,500, Also during the year, tis company declared and paid the owners dividends amounting to $12,000. Prepare the com- uny’s income statement 4) Inferring Values Using the Income Statement and Balance Sheet Equations Review the chapter explanations of the income statement and the balance sheet equations. Apply these equations in each ofthe following independent cases to compute the two missing amounts Foreach case. Assume that itis the end of the first full year of operations forthe company. Fist identify the numerical rations among the columns using the balance sheet and income statement equations. Then compute the missing amounts Independent Total Total Net Income Total Stockholders! Cases Revenues ities Equity $110,000 $7000 70,000 €0,000 50,000 Cinemark Holdings, Inc.CHAPTER 1 Business Decisons and Financial Accounting 101-2,1-3 _E1-9 Preparing an income Statement and Balance Sheet Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data are available: Total Revenues Operating Expenses Cash ‘Accounts Receivable Supplies ‘Accounts Payable Comman Stock 30,600 [No dividends were declared or paid during January. Required: 1, Complete the following income statement and balance sheet forthe month of January. ‘MIAN MUSIC CORPORATION Income Statement For the Month Ended January 31. ‘Total Revenues ‘Operating Expenses Net Income MIAMI MUSIC CORPORATION Balance Sheet At January 31 Assets cash Accounts Receivable Supplies “Total Assets Liabiities Accouns Payable ‘ul Libiites Stockholders’ Equity Comaon Stock Resained Earnings Total Stockholders’ Equity Total Libilites and Stockholders’ Equity 2. Did Miami Music Corporation generate a profit? Which financial statement indicates this? 3. Does Miami Music Corporation have sufficient resources to pay its liabilities? Which finan- cial statement indicates this?