Practice Income Statement And Balance Sheet Problems

Practice questions use the following information to answer.

Practice income statement and balance sheet problems. What is the other effect on the balance sheet. When an owner draws 5 000 from a sole proprietorship or when a corporation declares and pays a 5 000 dividend the asset cash decreases by 5 000. The balance sheet is derived using the accounting equation. A company will use a balance sheet to summarize its financial position at a given point in time.

The balance sheet reports a company s assets liabilities and equity as of a specific date. When you have completed the practice exam a green submit button will appear. Balance sheet and income statement relationship. Balance sheet practice quiz print pdf.

Doing the example with accounts payable growing. In the absence of information about the date of repayment of a liability then it may be assumed. This is different from an income statement which covers a period of time. Interpreting the income statement.

The following trial balance is prepared after preparation of income statement for f. Green as at 31 march 2015 in both horizontal and vertical style. Both the balance sheet and the income statement are affected 9. Basic cash flow statement.

The balance sheet debits and credits and double entry accounting. Month sales expenses january 20 000 15 000 february 30 000 20 000 march 40 000 30 000 april 30 000 20 000 may 50 000 40 000 june. The balance sheet is affected but the income statement is not b. Consider the following monthly data for clarington heights inc.

Statement of cash flows. How to prepare the basic balance sheet and statement of cash flows 11 00. This is the currently selected item. Uses a perpetual inventory system.

The balance sheet is affected but cost of goods sold is not d. As it is earned it moves from the balance sheet to the income statement as revenue 15. The following example questions ask you to calculate a company s total liabilities and total equity on a given day. Preparing the basic income statement and statement of retained earnings 6 48.

Green as at 31 march 2015. It summarizes a company s assets liabilities and owners equity. Click it to see your. Prepare balance sheet for f.

Interpreting the balance sheet. The income statement is affected but the balance sheet is not c. Statement of retained earnings.