eBook

Show Me How Video

Income Statement

After its first month of operations, the following amounts were taken from the accounting records of West Coast Dreams Realty Inc. as of June 30, 20Y9.

Cash $ 86,000 Notes payable $100,000 Common stock 150,000 Rent expense 16,000 Dividends 4,000 Retained earnings 0 Interest expense 600 Salaries expense 100,000 Land 200,000 Sales commissions 180,000 Miscellaneous expense 3,400 Utilities expense 20,000

Prepare an income statement for the month ended June 30, 20Y9.

West Coast Dreams Realty Inc.
Income Statement
For the Month Ended June 30, 20Y9
Revenues:

Capital stock Cash Interest expense Rent expense Sales commissions

$- Select – Expenses:

Capital stock Cash Notes payable Salaries expense Sales commissions

$- Select –

Cash Land Retained earnings Sales commissions Utilities expense

– Select –

Cash Dividends Notes payable Rent expense Sales commissions

– Select –

Cash Interest expense Land Notes payable Sales commissions

– Select –

Capital stock Miscellaneous expense Notes payable Retained earnings Sales commissions

– Select – Total expenses fill in the blank 13 Net income

eBook

Show Me How Video

Statement of stockholders’ equity

After its first month of operations, the following amounts were taken from the accounting records of West Coast Dreams Realty Inc. as of June 30, 20Y9.

Cash $ 86,000 Notes payable $100,000 Common stock 150,000 Rent expense 16,000 Dividends 4,000 Retained earnings 0 Interest expense 600 Salaries expense 100,000 Land 200,000 Sales commissions 180,000 Miscellaneous expense 3,400 Utilities expense 20,000

Prepare a statement of stockholders’ equity for the month ended June 30, 20Y9.

West Coast Dreams Realty Inc. Statement of Stockholders’ Equity
For the Month Ended June 30, 20Y9
Common Stock Retained Earnings Total Balances, June 1, 20Y9 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3

Interest expense Issued common stock Miscellaneous expense Revenues Sales commissions

– Select – – Select – – Select –

Capital stock Sales commissions Net income Net loss Miscellaneous expense

– Select – – Select – – Select –

Cash Dividends Interest expense Miscellaneous expense Retained earnings

– Select – – Select – – Select – Balances, June 30, 20Y9 $

eBook

Show Me How Video

Balance Sheet

After its first month of operations, the following amounts were taken from the accounting records of West Coast Dreams Realty Inc. as of June 30, 20Y9.

Cash $ 86,000 Notes payable $100,000 Common stock 150,000 Rent expense 16,000 Dividends 4,000 Retained earnings 0 Interest expense 600 Salaries expense 100,000 Land 200,000 Sales commissions 180,000 Miscellaneous expense 3,400 Utilities expense 20,000

Prepare a balance sheet as of June 30, 20Y9.

West Coast Dreams Realty Inc. Balance Sheet
June 30, 20Y9 Assets

Cash Common stock Notes payable Salaries expense Sales commissions

$- Select –

Dividends Land Notes payable Retained earnings Utilities expense

– Select – Total assets $fill in the blank 5 Liabilities

Cash Interest expense Land Notes payable Retained earnings

$- Select – Stockholders’ Equity

Cash Common stock Land Notes payable Rent expense

$- Select –

Cash Land Miscellaneous expense Notes payable Retained earnings

– Select – Total stockholders’ equity fill in the blank 12 Total liabilities and stockholders’ equity $fill in the blank 13

eBook

Effects of Transactions on Accounting Equation

Indicate how the following transactions of McDonald’s Corp. (MCD), would affect the three elements of the accounting equation. If an element increases and decreases by the same amount, select "no effect."

a. Paid research and development expenses for the current year.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

b. Purchased machinery and equipment for cash.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

c. Received cash from issuing stock.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

d. Received cash from the issuance of long-term debt.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

e. Made cash sales.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

f. Paid selling expenses.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

g. Paid employee pension expenses for the current year.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

h. Received cash from selling manufacturing equipment for a gain on the sale.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

i. Paid officer salaries.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

j. Paid taxes.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

k. Paid off long-term debt.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

increase decrease no effect

l. Paid dividends.

Assets

increase decrease no effect

Liabilities

increase decrease no effect

Stockholders’ equity

eBook

Common-sized income statements

Delta Air Lines, Inc. (DAL) provides cargo and passenger services throughout the world. The following operating data (in millions) were adapted from recent financial statements of Delta.

Year 1 Year 2 Revenue $ 39,639 $ 41,244 Operating expenses: Fuel $(5,133) $(5,733) Aircraft related (9,811) (10,609) Selling and general (15,757) (16,539) Other expenses (1,986) (2,249) Total operating expenses $(32,687) $(35,130) Operating income $ 6,952 $ 6,114

1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.

Delta Air Lines, Inc. Common-Sized Income Statement
For Years 1 and 2

Year 1 Year 2 Increase (Decrease) Revenue fill in the blank 134787f9fff4ff2_1% fill in the blank 134787f9fff4ff2_2% fill in the blank 134787f9fff4ff2_3% Operating expenses: Fuel fill in the blank 134787f9fff4ff2_4% fill in the blank 134787f9fff4ff2_5% fill in the blank 134787f9fff4ff2_6% Aircraft related fill in the blank 134787f9fff4ff2_7 fill in the blank 134787f9fff4ff2_8 fill in the blank 134787f9fff4ff2_9 Selling and general fill in the blank 134787f9fff4ff2_10 fill in the blank 134787f9fff4ff2_11 fill in the blank 134787f9fff4ff2_12 Other expenses fill in the blank 134787f9fff4ff2_13 fill in the blank 134787f9fff4ff2_14 fill in the blank 134787f9fff4ff2_15 Total operating expenses fill in the blank 134787f9fff4ff2_16% fill in the blank 134787f9fff4ff2_17% fill in the blank 134787f9fff4ff2_18% Operating income fill in the blank 134787f9fff4ff2_19% fill in the blank 134787f9fff4ff2_20 fill in the blank 134787f9fff4ff2_21%

2. What is the primary cause of the decrease in operating income in Year 2?

decreasing fuel and aircraft related costs decreasing revenue increasing fuel and aircraft related costs increasing revenue

Southwest Airlines Co. (LUV) provides passenger services throughout the United States, Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The following operating data (in millions) were adapted from recent financial statements of Southwest.

Year 1 Year 2 Revenue $ 20,425 $ 21,171 Operating expenses: Fuel $ (3,647) $(3,940) Aircraft related (3,706) (3,709) Selling and general (6,798) (7,319) Other expenses (2,514) (2,688) Total operating expenses $(16,665) $(17,656) Operating income $ 3,760 $ 3,515

1. Prepare common-sized income statements for Years 1 and 2. Round your answers to one decimal place.

Southwest Airlines Co. Common-Sized Income Statement
For Years 1 and 2

Year 1 Year 2 Increase
(Decrease) Revenue fill in the blank 818a64fb8046ffe_1% fill in the blank 818a64fb8046ffe_2% fill in the blank 818a64fb8046ffe_3% Operating expenses: Fuel fill in the blank 818a64fb8046ffe_4% fill in the blank 818a64fb8046ffe_5% fill in the blank 818a64fb8046ffe_6% Aircraft related fill in the blank 818a64fb8046ffe_7 fill in the blank 818a64fb8046ffe_8 fill in the blank 818a64fb8046ffe_9 Selling and general fill in the blank 818a64fb8046ffe_10 fill in the blank 818a64fb8046ffe_11 fill in the blank 818a64fb8046ffe_12 Other expenses fill in the blank 818a64fb8046ffe_13 fill in the blank 818a64fb8046ffe_14 fill in the blank 818a64fb8046ffe_15 Total operating expenses fill in the blank 818a64fb8046ffe_16% fill in the blank 818a64fb8046ffe_17% fill in the blank 818a64fb8046ffe_18% Operating income fill in the blank 818a64fb8046ffe_19% fill in the blank 818a64fb8046ffe_20% fill in the blank 818a64fb8046ffe_21%

2. What is the primary cause of the decrease in operating income in Year 2?

decrease in fuel expenses decrease in revenue increase in selling, general, and fuel expenses increase in revenue

eBook

Common-sized income statements

Delta Air Lines, Inc. (DAL) provides cargo and passenger services throughout the world. The following common-sized income statements for Years 1 and 2 were adapted from recent financial statements of Delta.

Delta Air Lines, Inc.
Common-Sized Income Statement Year 1 Year 2 Increase
(Decrease) Revenue 100.0 % 100.0 % n/a Operating expenses: Fuel (12.9) % (13.9) % 1.0 % Aircraft related (24.8) (25.7) 0.9 Selling and general (39.8) (40.1) 0.3 Other expenses (5.0) (5.5) 0.5 Total operating expenses (82.5) % (85.2) % 2.7 % Operating income 17.5 % 14.8 % (2.7) %

Southwest Airlines Co. (LUV) provides passenger services throughout the United States, Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The following common-sized income statements for Years 1 and 2 were adapted from recent financial statements of Southwest.

Southwest Airlines Co.
Common-Sized Income Statement Year 1 Year 2 Increase
(Decrease) Revenue 100.0 % 100.0 % n/a Operating expenses: Fuel (17.9) %

NEED ASSIGNMENT HELP?

We guarantee plagiarism-free and AI-free writing services. Every assignment is crafted with originality, precision, and care to meet your academic needs.

Ready to get started? Place your order directly on this post!

Let us help you achieve excellence—authentic work, every time.