Question

1. The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal year.

   Cash	$16,400
   Accounts Receivable	15,100
   Merchandise Inventory	55,500
   Store Supplies	1,603
   Prepaid Insurance	3,080
   Store Equipment	24,900
   Accumulated Depreciation, Store Equipment	3,860
   Accounts Payable	14,400
   M. E. Sheldon, Capital	126,484
   M. E. Sheldon, Drawing	36,000
   Sales	227,000
   Sales Returns and Allowances	2,000
   Purchases	172,000
   Purchases Returns and Allowances	2,375
   Purchases Discounts	3,567
   Freight In	7,491
   Wages Expense	24,800
   Advertising Expense	5,912
   Rent Expense	12,900

   The data needed for adjustments on January 31 are as follows:

   a-b. Merchandise inventory, January 31, $55,750.

      c. Insurance expired for the year, $1,285.

      d. Depreciation for the year, $5,482.

      e. Accrued wages on January 31, $1,556.

      f. Supplies used during the year $1,503.

   Required:

   Prepare a work sheet for the fiscal year ended January 31. If an amount box does not require an entry, leave it blank. Enter all numbers as positive values.

   Sheldon Company
   Work Sheet
   For Year Ended January 31, 20--
   		TRIAL BALANCE		ADJUSTMENTS		INCOME STATEMENT		BALANCE SHEET
   	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
   1	Cash									1
   2	Accounts Receivable									2
   3	Merchandise Inventory									3
   4	Store Supplies									4
   5	Prepaid Insurance									5
   6	Store Equipment									6
   7	Accumulated Depreciation, Store Equipment									7
   8	Accounts Payable									8
   9	M. E. Sheldon, Capital									9
   10	M. E. Sheldon, Drawing									10
   11	Sales									11
   12	Sales Returns and Allowances									12
   13	Purchases									13
   14	Purchases Returns and Allowances									14
   15	Purchases Discounts									15
   16	Freight In									16
   17	Wages Expense									17
   18	Advertising Expense									18
   19	Rent Expense									19
   20										20
   21	Income Summary									21
   22	Insurance Expense									22
   23	Depreciation Expense, Store Equipment									23
   24	Wages Payable									24
   25	Store Supplies Expense									25
   26										26
   27	Net Income (Loss)									27
   28										28
   29										29

   Prepare an income statement.

   Sheldon Company
   Income Statement
   For Year Ended January 31, 20--
   Revenue from Sales:
   			$
   Net Sales				$
   Cost of Goods Sold:
   		$
   	$
   Net Purchases		$
   			$
   				$
   Operating Expenses:
   			$
   Total Operating Expenses
   Net Loss

   Prepare a statement of owner's equity. No additional investments were made during the year.

   Sheldon Company
   Statement of Owner's Equity
   For Year Ended January 31, 20--
   		$
   	$
   		$

   Prepare a balance sheet.

   Sheldon Company
   Balance Sheet
   January 31, 20--
   Assets
   Current Assets:
   	$
   Total Current Assets		$
   Property and Equipment:
   	$
   Total Assets		$
   Liabilities
   Current Liabilities:
   	$
   Total Liabilities		$
   Owner's Equity
   Total Liabilities and Owner's Equity		$

Answer 1

Sheldon Company Work Sheet For Year Ended January 31, 20- Trial Balance Adjustments Adjusted Balance sheet Income Statement Debit in $ Credit in $ Debit in Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Account Name Cash Accounts Receivable Merchandise Inventory Store Supplies Prepaid Insurance Store Equipment Accum Depre, Store Equipment Accounts Payable Wages Payable M. E. Sheldon, Capital M. E. Sheldon, Drawing Sales Sales Returns and Allowances Cost of goods sold Purchases Purchases Returns and Allowances Purchases Discounts Freight In Wages Expense Advertising Expense Rent Expense Insurance Expense Depre- Expense, Store Equipment Store Supplies Expense Totals Net Loss 16400 15100 55500 1603 3080 24900 16400 15100 55500 100 1795 24900 16400 15100 55500 100 1795 24900 1503 1285 9342 14400 1556 126484 9342 14400 1556 88497 3860 14400 1556 126484 36000 36000 227000 227000 227000 2000 2000 2000 173549 172000 172000 2375 2375 3567 3567 7491 24800 5912 7491 26356 5912 1556 26356 5912 1285 1285 1285 1503 1503 1503 9826 9826 377686 377686 384724384724 228987 227000 113795 113795 1987

Income Statement For Year Ended January 31, 20- Revenue from Sales: Sales Returns and Allowances Net Sales Cost of goods sold Gross Profit 227000 2000 225000 173549 51451 Expenses: Wages Expense Advertising Expense Rent Expense Insurance Expense Depre- Expense, Store Equipment Store Supplies Expense Net Loss 26356 5912 12900 1285 5482 1503 53438 1987 Cost of goods sold Purchases Purchases Returns and Allowances Purchases Discounts Freight In COGS 172000 2375 3567 7491 173549 Statement of Owners Equity For Year Ended January 31, 20-- M. E. Sheldon, Capital Net Loss M. E. Sheldon, Drawing 126484 1987 36000 88497

Balance sheet As at 29.2.2016 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Store Supplies Prepaid Insurance Amounts in Amounts in $ Liabilities Amounts in Amounts in $ Current Liabilities Accounts Payable Wages Payable 16400 15100 55500 100 1795 14400 1556 15956 88895 Non Current Assets Store Equipment Accum Depre, Store Equi Total Assets Owner's Equity 15558 M. E. Sheldon, Capital 104453 Total Liabilities & Equity 24900 9342 88497 104453