t t Deg g olthe year.) 4.9 An engineering construction firm is chartered to provide consulting
services, design, and a limited range of construction services. Its designs have developed into
registered patents Some designs are licensed by subcontractors, the firm not choosing to use
them itself; it does re- ceive income from that business arrangement. These accounts and their
balance are summa- rized below or a family-owned firm titled \"Eastwood s are in units of
$1000, but ignore r each account title, first identify if it is an asset, liability, net worth, income,
expense, Find the income statement and balance sheet f Engineering Services,\" Second Quarter.
(Hints: These value that. Fo or tax. Each account will have a spot in either the income or
balance-sheet statement.)
Solution
Income Statement Revenue in $ in $ Fees Recived 73 Sales of design 7 Equipment
Lease 6 Royality on Patent 40 Interest On owned Securities 126 Less Salary
Expense 28 Utilities Paid 5 Taxes 12 Office Rent 1 Travel 4 Interest On owned
Securities 2 Supplies Expense 9 61 Net Income after tax 65 Balance sheet
Liability Amount in $ Asset Amount in $ Opening bal of retained earning 27 Equipment Book
Value 58 Profit as per income statement 65 Receivable from project 55 Capital Stock 25
Account Payable 30 Patent Asset 11 Bond Owned 12 Cash in Hand 3.
t t Deg g olthe year.) 4.9 An engineering construction firm is .pdf
1. t t Deg g olthe year.) 4.9 An engineering construction firm is chartered to provide consulting
services, design, and a limited range of construction services. Its designs have developed into
registered patents Some designs are licensed by subcontractors, the firm not choosing to use
them itself; it does re- ceive income from that business arrangement. These accounts and their
balance are summa- rized below or a family-owned firm titled "Eastwood s are in units of
$1000, but ignore r each account title, first identify if it is an asset, liability, net worth, income,
expense, Find the income statement and balance sheet f Engineering Services," Second Quarter.
(Hints: These value that. Fo or tax. Each account will have a spot in either the income or
balance-sheet statement.)
Solution
Income Statement Revenue in $ in $ Fees Recived 73 Sales of design 7 Equipment
Lease 6 Royality on Patent 40 Interest On owned Securities 126 Less Salary
Expense 28 Utilities Paid 5 Taxes 12 Office Rent 1 Travel 4 Interest On owned
Securities 2 Supplies Expense 9 61 Net Income after tax 65 Balance sheet
Liability Amount in $ Asset Amount in $ Opening bal of retained earning 27 Equipment Book
Value 58 Profit as per income statement 65 Receivable from project 55 Capital Stock 25
Account Payable 30 Patent Asset 11 Bond Owned 12 Cash in Hand 3
