Financial Statements Income Statement Balance Sheet Statement of

Financial Statements Income Statement Balance Sheet Statement of Owner’s Equity Statement of Cash Flows

Financial Statements - Income Date reflects revenues Statement and expenses incurred over a period of time Net income figure used to prepare statement of owner’s equity

Balance Sheet Date reflects account balances as of a certain date Ending balance of owner’s capital comes from statement of owner’s equity

Financial Statements - Statement of Owner’s Equity Ending balance of owner’s capital used to prepare the balance sheet Net income figure comes from income statement

Answer P 3 - 1

Answer P 3 - 2

Answer P 3 - 3

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Exercise 1 -5 Asset Liability Cash Accounts payable Equipment Notes payable Supplies Salaries and wages payable Accounts receivable 22 Equity Share Capital—Ordinary

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Exercise 1 -12 (a) KAREN WEIGEL CO. LTD Income Statement For the Year Ended December 31, 2017 Revenues Service revenue Expenses Salaries and wages expense Rent expense Utilities expense Advertising expense Total expenses Net income 24 £ 62, 500 £ 28, 000 10, 400 3, 100 1, 800 43, 300 £ 19, 200

Exercise 1 -12 (Continued) (b) KAREN WEIGEL CO. LTD Comprehensive Income Statement For the Year Ended December 31, 2017 Net income £ 19, 200 Other comprehensive income 400 Comprehensive income £ 19, 600 25

Exercise 1 -12 (Continued) (c) KAREN WEIGEL CO. LTD Retained Earnings Statement For the Year Ended December 31, 2017 Retained earnings, January 1 £ 48, 000 Add: Net income 19, 200 67, 200 Less: Dividends 5, 000 Retained earnings, December 31 £ 62, 200 26

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Exercise 1 -15 DELGADO CRUISE COMPANY SA Income Statement For the Year Ended December 31, 2017 Revenues Ticket revenue Expenses Salaries and wages expense Maintenance and repairs expense Utilities expense Advertising expense Total expenses Net income 28 R$342, 000 R$144, 000 97, 000 10, 000 3, 500 254, 500 R$ 87, 500

Exercise 1 -15 (Continued) DELGADO CRUISE COMPANY SA Comprehensive Income Statement For the Year Ended December 31, 2017 Net income R$87, 500 Other comprehensive income 4, 200 Comprehensive income R$91, 700 29