Chapter 7
Corporations: The Financial Statements
345
AP-14A
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2
3
5
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Below is a list of accounts and balances for FlipFlop Inc. for the year ending June 30, 2016.
Based on the information provided, answer the required questions. FlipFlop Inc. follows ASPE.
Account Title
Balance
Accounts Payable
$8,900
Accounts Receivable
6,100
Accumulated Depreciation
1,200
Bank Loan
21,000
Cash
19,000
Common Shares
10,000
Cost of Goods Sold
13,500
Depreciation Expense
700
Dividends
3,500
Gain on Sale of Assets from Discontinued Operations
2,000
Insurance Expense
600
Interest Expense
120
Interest Revenue
280
Income Tax Expense (Continuing Operations)
1,516
Income Tax Expense (Discontinued Operations)
2,000
Inventory
18,000
Maintenance Expense
590
Operating Income from Discontinued Operations
8,000
Prepaid Insurance
3,250
Professional Fees Expense
260
Equipment
25,000
Rent Expense
1,000
Retained Earnings (beginning balance)
17,986
Salaries Expense
2,500
Sales Discounts
1,100
Sales Returns and Allowances
840
Sales Revenue
30,000
Telephone Expense
90
Travel Expense
1,400
Unearned Revenue
1,700
