Question Description
1. 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 StatementFor the Month Ended June 30, 20Y9Revenues: $Expenses: $ Total expensesNet income$
2. 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’ EquityFor the Month Ended June 30, 20Y9 Common StockRetained EarningsTotalBalances, June 1, 20Y9$$$ Balances, June 30, 20Y9$$
$
3. 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 SheetJune 30, 20Y9Assets $ Total assets$Liabilities $Stockholders’ Equity $ Total stockholders’ equityTotal liabilities and stockholders’ equity$
4. 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 2Revenue $ 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 1Year 2Increase (Decrease)Revenue%%%Operating expenses: Fuel%%%Aircraft relatedSelling and generalOther expensesTotal operating expenses%%%Operating income%%What is the primary cause of the decrease in operating income in Year 2? - 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 2Revenue $ 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 1Year 2Increase
(Decrease)Revenue%%%Operating expenses: Fuel%%%Aircraft relatedSelling and generalOther expensesTotal operating expenses%%%Operating income%%%2. What is the primary cause of the decrease in operating income in Year 2?
