Question

Use the following data from Burt Co., taken from the ledger after adjustment on December 31 the end of the fiscal year.

Accounts Payable	$97,200
Accounts Receivable	64,300
Accumulated Depreciation—Office Equipment	72,750
Accumulated Depreciation—Store Equipment	162,100
Administrative Expenses	56,500
Cash	53,000
Cost of Merchandise Sold	121,700
Interest Expense	12,000
Maeve Burt, Capital	81,750
Maeve Burt, Drawing	52,000
Merchandise Inventory	93,250
Note Payable (due in two years)	154,000
Office Equipment	149,750
Prepaid Insurance	6,500
Rent Revenue	17,500
Salaries Payable	28,700
Sales	365,500
Selling Expenses	41,500
Store Equipment	325,000
Supplies	4,000

a. Prepare a single-step income statement from the above data.

Burt Co
Income Statement
For the Year Ended December 31
Revenues:
		$
Total revenues		$
Expenses:
	$
Total expenses
		$

b. Prepare a statement of owner's equity from the above data.

Burt Co
Statement of Owner's Equity
For the Year Ended December 31
		$
	$
		$

c Prepare a balance sheet in report form from the above data.

Burt Co
Balance Sheet
December 31
Assets
Current assets:
		$
Total current assets			$
Property, plant, and equipment:
	$
		$
	$
Total property, plant, and equipment
Total assets			$
Liabilities
Current liabilities:
		$
Total current liabilities			$
Long-term liabilities:
Total liabilities			$
Owner's Equity
Total liabilities and owner's equity			$

Answer 1

• Requirement ‘a’

Burt Co
Income Statement
For the Year Ended December 31
Revenues:
Sales		$ 365,500.00
Rent Revenue		$    17,500.00
Total revenues		$ 383,000.00
Expenses:
Administrative Expenses	$    56,500.00
Cost of Merchandise Sold	$ 121,700.00
Interest Expense	$    12,000.00
Selling Expenses	$    41,500.00
Total expenses		$ 231,700.00
Net Income		$ 151,300.00

• Requirement b

Burt Co
Statement of Owner's Equity
For the Year Ended December 31
Maeve Burt, Capital Beginning balance		$    81,750.00
Add: Net Income	$ 151,300.00
Less: Drawings	$    52,000.00
		$    99,300.00
Maeve Burt, Capital Ending balance		$ 181,050.00

• Requirement ‘c’

Burt Co
Balance Sheet
Dec-31
Assets
Current assets:
Cash		$    53,000.00
Accounts Receivable		$    64,300.00
Merchandise Inventory		$    93,250.00
Prepaid Insurance		$      6,500.00
Supplies		$      4,000.00
Total current assets			$ 221,050.00
Property, plant, and equipment:
Office Equipment	$ 149,750.00
Accumulated Depreciation—Office Equipment	$    72,750.00	$    77,000.00
Store Equipment	$ 325,000.00
Accumulated Depreciation—Store Equipment	$ 162,100.00	$ 162,900.00
Total property, plant, and equipment			$ 239,900.00
Total assets			$ 460,950.00
Liabilities
Current liabilities:
Accounts Payable		$    97,200.00
Salaries Payable		$    28,700.00
Total current liabilities			$ 125,900.00
Long-term liabilities:
Note Payable (due in two years)			$ 154,000.00
Total liabilities			$ 279,900.00
Owner's Equity
Maeve Burt, Capital Ending balance			$ 181,050.00
Total liabilities and owner's equity			$ 460,950.00