Question
In: Accounting
Johnston Enterprises Balance Sheet and Income Statement Data December 31, 2017 2016 Accounts Payable 187,000 102,000...
|
Johnston Enterprises |
|
Balance Sheet and Income Statement Data |
|
December 31, |
|
2017 |
2016 |
||
|
Accounts Payable |
187,000 |
102,000 |
|
|
Accounts Receivable |
238,000 |
306,000 |
|
|
Accumulated Depreciation |
476,000 |
442,000 |
|
|
Bonds Payable |
340,000 |
391,000 |
|
|
Cash |
153,000 |
119,000 |
|
|
Common Stock |
510,000 |
467,500 |
|
|
Cost of Goods Sold |
751,000 |
731,000 |
|
|
Depreciation Expense |
153,000 |
136,000 |
|
|
Income Tax Expense |
110,000 |
102,000 |
|
|
Income Taxes Payable |
85,000 |
76,500 |
|
|
Interest Expense |
34,000 |
34,000 |
|
|
Inventory |
391,000 |
340,000 |
|
|
Loss on Sale of Equipment |
12,000 |
0 |
|
|
Notes Payable (current) |
51,000 |
68,000 |
|
|
Property, Plant, and Equipment |
1,241,000 |
1,122,000 |
|
|
Retained Earnings |
? |
340,000 |
|
|
Salaries and Wages Expense |
391,000 |
357,000 |
|
|
Sales Revenue |
1,615,000 |
1,513,000 |
Additional Information:
During the year, Johnston paid dividend of $130,000; sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000; and purchased new equipment for $272,000.
Instruction
- Prepare a Comparative Income statement for years ending December 31, 2016 and 2017.
- Prepare a statement of Retained Earnings for the year ending December 31, 2017.
- Prepare a Comparative Balance Sheet for years ending December 31, 2016 and 2017.
- Prepare a statement of cash flows for the year ending December 31, 2017.
Solutions
Expert Solution
| Comparative Income Statement | ||||
| Particulars | 2017 | 2016 | ||
| Sales revenue | $ 1,615,000.00 | $ 1,513,000.00 | ||
| Less: | COGS | $ 751,000.00 | $ 731,000.00 | |
| Gross Profit | $ 864,000.00 | $ 782,000.00 | ||
| Less: | Expenses | |||
| Depreciation | $ 153,000.00 | $ 136,000.00 | ||
| Interest Expense | $ 34,000.00 | $ 34,000.00 | ||
| Loss on sale | $ 12,000.00 | |||
| Salaries and wages | $ 391,000.00 | $ 357,000.00 | ||
| Tax Expense | $ 110,000.00 | $ 102,000.00 | ||
| Net Income | $ 164,000.00 | $ 153,000.00 | ||
| Retained Earning Statement | ||||
| Opening Balance | $ 340,000.00 | |||
| Add: | Net income | $ 164,000.00 | ||
| Less: | Dividend Paid | $ (130,000.00) | ||
| Closing Balance | $ 374,000.00 | |||
| Comparative Balance Sheet | ||||||||
| Assets | 2017 | 2016 | Liabilities | 2017 | 2016 | |||
| Accounts Receivable | $ 238,000.00 | $ 306,000.00 | Accounts Payable | $ 187,000.00 | $ 102,000.00 | |||
| Accumulated Dep | $ (476,000.00) | $ (442,000.00) | Bonds Payable | $ 340,000.00 | $ 391,000.00 | |||
| Cash | $ 153,000.00 | $ 119,000.00 | Common Stock | $ 510,000.00 | $ 467,500.00 | |||
| Inventory | $ 391,000.00 | $ 340,000.00 | Income Tax Payable | $ 85,000.00 | $ 76,500.00 | |||
| Property Plant | $ 1,241,000.00 | $ 1,122,000.00 | Notes Payable | $ 51,000.00 | $ 68,000.00 | |||
| Retained Earnings | $ 374,000.00 | $ 340,000.00 | ||||||
| Total | $ 1,547,000.00 | $ 1,445,000.00 | Total | $ 1,547,000.00 | $ 1,445,000.00 | |||
| Cash Flow Statement | ||||
| Particulars | Amount | |||
| Net Profit | $ 164,000.00 | |||
| Add: | Depreciation | $ 153,000.00 | ||
| Add: | Income Tax | $ 110,000.00 | ||
| Add: | Loss on sale | $ 12,000.00 | $ 275,000.00 | |
| Adjsuted Net Profit | $ 439,000.00 | |||
| Operating Activities | ||||
| Add: | Decrease in assets/ Increase in Liabilities | |||
| Accounts Receivable | $ 68,000.00 | |||
| Accounts Payable | $ 85,000.00 | |||
| $ 153,000.00 | ||||
| Less: | Increase in assets/ Decrease in Liabilities | |||
| Inventories | $ (51,000.00) | |||
| Net Cash flow form Operating Activities | $ 102,000.00 | |||
| $ 541,000.00 | ||||
| Less: | Income Tax paid | $ (101,500.00) | ||
| $ 439,500.00 | ||||
| Investing Activities | ||||
| Sale of Equipment | $ 22,000.00 | |||
| Purchased Equipment | $ (272,000.00) | |||
| Net Cash flow form Investing Activities | $ (250,000.00) | |||
| $ 189,500.00 | ||||
| Financing Activities | ||||
| Issue of common stock | $ 42,500.00 | |||
| Repayment of Notes Payable | $ (17,000.00) | |||
| Dividend Paid | $ (130,000.00) | |||
| Repayment of Bonds Payable | $ (51,000.00) | |||
| Net Cash flow form Financing Activities | $ (155,500.00) | |||
| $ 34,000.00 | ||||
| Add: | Opening cash balance | $ 119,000.00 | ||
| Closing cash balance | $ 153,000.00 | |||
Workings:
| Income Tax Payable Account | ||||
| Cash | $ 101,500.00 | Opening | $ 76,500.00 | |
| Closing | $ 85,000.00 | P/L | $ 110,000.00 | |
| $ 186,500.00 | $ 186,500.00 | |||
| Equipment Account | ||||
| Opening | $ 1,122,000.00 | Sale | $ 153,000.00 | |
| Purchase | $ 272,000.00 | Closing | $ 1,241,000.00 | |
| $ 1,394,000.00 | $ 1,394,000.00 | |||
| Sale of Equipment | ||||
| Cost of Equipment sold | $ 153,000.00 | |||
| Less: | Accumulated Dep | $ 119,000.00 | ||
| Book value | $ 34,000.00 | |||
| Less: | Loss on sale | $ 12,000.00 | ||
| Sale price | $ 22,000.00 | |||
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Expenses
Cost of goods sold
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Depreciation expense
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Rent expense
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Interest expense
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The Sage Corporation prepared, for 2017 and 2016, the following balance sheet data: December 31 2017...
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2017
2016
Cash
....................................
$ 87,375
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Available-for-sale securities (not cash
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17,250
105,000
Accounts receivable
.....................
90,000
86,250
Merchandise inventory
...................
187,500
163,500
Prepaid insurance
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1,125
1,500
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................
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.................................
$1,203,375
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$ 153,375
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Salaries payable
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18,750
26,250
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150,000...
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Accounts receivable
$38,200
Notes payable
14,000
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2,100
36,100
Unearned revenue
2,800
Inventory
61,500
Total current liabilities
$45,200
Prepaid expenses
6,100
Total current assets
$122,800
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Receivables
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Inventories
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Accrued liabilities
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Total current assets
$25,200
Total current liabilities
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Common stock
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26,608
Total assets
$46,800
Total liabilities and equity
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Operating costs including depreciation
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Receivables 10,800 Notes payable 3,472
Inventories 12,600 Accrued liabilities 2,520
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—
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2016
Increase
(Decrease)
Cash
$814,600
$706,000
$108,600
Accounts receivable
1,129,100
1,176,600
(47,500
)
Inventory
1,861,900
1,719,500
142,400
Property, plant, and equipment
3,335,800
2,940,300
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)
(1,046,100
)
(113,500
)
Investment in Myers Co.
313,100
277,300
35,800
Loan receivable
249,200
—
249,200
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$6,544,100
$5,773,600
$770,500
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2016
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Cash
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$694,000
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Accounts receivable
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1,158,200
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1,702,600
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Property, plant, and equipment
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—
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