Upton Company was started on January 1, 2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of $120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000.
9.
value:
2.00 points
Required information
Required:
2011 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows using each of the following assumptions. (Consider each assumption separately.)
(a)Upton is a sole proprietorship owned by J. Upton.(For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
Upton Company
Income Statements
For the Year Ended December 31, 2011 Revenues $ Expenses (Click to select)Net IncomeNet loss $
Upton Company
Capital Statement
For the Year Ended December 31, 2011 (Click to select)Less: Withdrawal by OwnerLess: Capital Acquired from OwnerPlus: Withdrawal by OwnerBeginning Capital BalancePlus: Capital Acquired from Owner $ (Click to select)Plus: Capital Acquired from OwnerBeginning Capital BalancePlus: Withdrawal by OwnerLess: Withdrawals by OwnerLess: Capital Acquired from Owner (Click to select)Plus: Net IncomeLess: Net loss (Click to select)Beginning Capital BalancePlus: Capital Acquired from OwnerPlus: Withdrawal by OwnerLess: Withdrawal by OwnerLess: Capital Acquired from Owner Ending Capital Balance $
Upton Company
Balance Sheet
As of December 31, 2011 Assets (Click to select)Common StockRetained EarningsExpensesNotes payableCash $
Total Assets $
Liabilities $0 Equity (Click to select)CashUpton, CapitalExpensesNotes payableRetained Earnings
Total Liabilities and Equity $
Upton Company
Statement of Cash Flows
For the Year Ended December 31, 2011 Cash Flows From Operating Activities: (Click to select)Inflow from OwnerPlus: Beginning Cash BalanceInflow from RevenuesOutflow for ExpensesOutflow for Owner Withdrawals $ (Click to select)Outflow for ExpensesPlus: Beginning Cash BalanceOutflow for Owner WithdrawalsInflow from OwnerInflow from Revenues
Net Cash Flow from Operating Activities $ Cash Flows From Investing Activities 0 Cash Flows From Financing Activities: (Click to select)Outflow for Owner WithdrawalsOutflow for ExpensesInflow from OwnerPlus: Beginning Cash BalanceInflow from Revenues (Click to select)Inflow from OwnerOutflow for ExpensesInflow from RevenuesPlus: Beginning Cash BalanceOutflow for Owner Withdrawals
Net Cash Flow from Financing Activities
Net Change in Cash (Click to select)Outflow for ExpensesLess: Beginning Cash BalancePlus: Beginning Cash BalanceInflow from RevenuesInflow from Owner
Ending Cash Balance $
References
eBook & Resources
WorksheetLearning Objective: 08-1
Difficulty: MediumLearning Objective: 08-2
Check my work
10.
value:
2.00 points
Required information
(b)Upton is a partnership with two partners, Dan and Nancy Upton. Dan invested $100,000 and Nancy invested $60,000 of the $160,000 cash that was used to start the business. Nancy was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Nancy to receive 60 percent of the profits and Dan the remaining 40 percent. With regard to the $15,000 distribution, Nancy withdrew $6,000 from the business and Dan withdrew $9,000.(For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
Upton Company
Income Statement
For the Year Ended December 31, 2011 Revenues $ Expenses (Click to select)Net IncomeNet loss $
Upton Company
Capital Statement
For the Year Ended December 31, 2011 (Click to select)Plus: Withdrawal by OwnerPlus: Capital Acquired from OwnersBeginning Capital BalanceLess: Withdrawal by OwnersLess: Capital Acquired from Owner $ (Click to select)Plus: Capital Acquired from OwnersPlus: Withdrawal by OwnerLess: Capital Acquired from OwnerLess: Withdrawal by OwnersBeginning Capital Balance (Click to select)Less: Net lossPlus: Net Income (Click to select)Less: Capital Acquired from OwnerPlus: Withdrawal by OwnerPlus: Capital Acquired from OwnersLess: Withdrawal by OwnersBeginning Capital Balance Ending Capital Balance $
Upton Company
Balance Sheet
As of December 31, 2011 Assets (Click to select)CashCommon StockNotes payableRetained EarningsExpenses $
Total Assets $ Liabilities $0
Equity (Click to select)Dan Upton, CapitalNancy Upton, CapitalExpensesRetained EarningsNotes payable (Click to select)Notes payableExpensesDan Upton, CapitalRetained EarningsNancy Upton, Capital
Total Liabilities and Equity $
Upton Company
Statement of Cash Flows
For the Year Ended December 31, 2011 Cash Flows From Operating Activities: (Click to select)Outflow for ExpensesPlus: Beginning Cash BalanceInflow from RevenuesOutflow for Owner WithdrawalsInflow from Owner $ (Click to select)Inflow from OwnerPlus: Beginning Cash BalanceInflow from RevenuesOutflow for ExpensesOutflow for Owner Withdrawals
Net Cash Flow from Operating Activities $ Cash Flows From Investing Activities 0 Cash Flows From Financing Activities: (Click to select)Outflow for Partners’ WithdrawalsInflow from PartnersInflow from RevenuesOutflow for ExpensesPlus: Beginning Cash (Click to select)Outflow for ExpensesInflow from RevenuesInflow from PartnersPlus: Beginning CashOutflow for Partners’ Withdrawals
Net Cash Flow from Financing Activities
Net Change in Cash (Click to select)Inflow from RevenuesPlus: Beginning Cash BalanceLess: Beginning Cash BalanceOutflow for ExpensesInflow from Owner Ending Cash Balance $
References
eBook & Resources
WorksheetLearning Objective: 08-1
Difficulty: MediumLearning Objective: 08-2
Check my work
11.
value:
2.00 points
Required information
(c)Upton is a corporation. The owners were issued 10,000 shares of $10 par common stock when they invested the $160,000 cash in the business.(For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
Upton Inc.
Income Statement
For the Year Ended December 31, 2011 Revenues $ Expenses (Click to select)Net IncomeNet loss $
Upton Inc.
Statement of Changes in Stockholders’ Equity
For the Year Ended December 31, 2011 (Click to select)Less: Capital Acquired from OwnerLess: Withdrawal by OwnersBeginning Common StockPlus: Withdrawal by OwnerPlus: Capital Acquired from Owners $ (Click to select)Less: Withdrawal by OwnersPlus: Withdrawal by OwnerBeginning Common StockPlus: Issuance of Common StockLess: Issuance of Common Stock
(Click to select)Ending Common StockPlus: Issuance of Common StockBeginning Common StockLess: Issuance of Common StockPlus: Withdrawal by Owner $ (Click to select)Plus: Issuance of Common StockPlus: Withdrawal by OwnerDividendsLess: Issuance of Common StockBeginning Retained Earnings (Click to select)Plus: Net IncomeLess: Net loss (Click to select)Plus: DividendsLess: DividendsBeginning Retained EarningsLess: Issuance of Common StockPlus: Issuance of Common Stock
(Click to select)Plus: DividendsLess: Issuance of Common StockLess: DividendsEnding Retained EarningsPlus: Issuance of Common Stock
Total Stockholders’ Equity $
Upton Inc.
Balance Sheet
As of December 31, 2011 Assets (Click to select)Notes payableCashCommon StockRetained EarningsExpenses $
Total Assets $
Liabilities $0 Stockholders’ Equity (Click to select)Retained EarningsNotes payableCashCommon StockExpenses $ (Click to select)CashPaid-In Capital in Excess of ParNotes payableExpensesRetained Earnings
Total Paid-In Capital (Click to select)Paid-In Capital in Excess of ParNotes payableCashRetained EarningsExpenses
Total Liabilities and Stockholders’ Equity $
Upton Inc.
Statement of Cash Flows
For the Year Ended December 31, 2011 Cash Flows From Operating Activities: (Click to select)Outflow for Owner WithdrawalsOutflow for ExpensesInflow from OwnerPlus: Beginning Cash BalanceInflow from Revenues $ (Click to select)Inflow from OwnerOutflow for Owner WithdrawalsOutflow for ExpensesPlus: Beginning Cash BalanceInflow from Revenues
Net Cash Flow from Operating Activities $ Cash Flows From Investing Activities 0 Cash Flows From Financing Activities: (Click to select)Plus: Beginning Cash BalanceInflow from RevenuesOutflow for DividendsOutflow for ExpensesInflow from Issue of Stock (Click to select)Inflow from RevenuesPlus: Beginning Cash BalanceOutflow for ExpensesOutflow for DividendsInflow from Issue of Stock
Net Cash Flow from Financing Activities
Net Change in Cash (Click to select)Plus: Beginning Cash BalanceLess: Beginning Cash BalanceOutflow for ExpensesInflow from OwnerInflow from Revenues
Ending Cash Balance $
