Partial Balance Sheets and Additional Information Are Listed Below for Funk

question 152

Essay

Partial balance sheets and additional information are listed below for Funk Company.

Additional information for 2016:
Net income was $170,000.
Depreciation expense was $30,000.
Sales totaled $800,000.
Cost of goods sold totaled $325,000.
Required:
Prepare the summary entry for the amount of cash received from customers during 2016.

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Definitions:

Outstanding Shares

The total number of shares of stock that are currently held by all shareholders, including share blocks held by institutional investors and restricted shares.

Beginning of the Year Balance

The amount of money or value of an account at the start of a fiscal year before any transactions have been accounted for.

Parent-Subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) by owning a majority of its stock.

Common Stock

Common Stock represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits via dividends.