110 Cash $2,500.00 $0.00 120 Accounts Receivable 2,500.00 - 140 Inventory 4,200.00 - 151 Prepaid Insurance...

110	Cash	$2,500.00	$0.00
120	Accounts Receivable	2,500.00	-
140	Inventory	4,200.00	-
151	Prepaid Insurance	200.00	-
161	Land	20,000.00	-
162	Building	50,000.00	-
165	Equipment	7,500.00	-
166	Vehicles	8,000.00	-
182	Acc. Dep. Building	-	13,500.00
185	Acc. Dep. Equipment	-	5,250.00
186	Acc. Dep. Vehicles	-	2,000.00
200	Line of Credit	-	25,000.00
210	Accounts Payable	-	1,500.00
215	Interest Payable	-
224	Sales Tax Payable	-	1,100.00
230	Book Deposits	-	-
241	Notes Payable	-	-
310	Capital	-	33,000.00
311	Drawing	5,800.00	-
401	Book Sales	-	180,500.00
405	Sales Discounts	2,500.00	-
410	Sales Returns	2,000.00	-
501	Book Purchases	110,900.00	-
505	Freight In	2,000.00	-
510	Purchase Discounts	-	2,000.00
515	Purchase Returns		2,000.00
550	Income Summary
601	Wages	20,000.00	-
611	Utilities	10,000.00	-
621	Advertising	10,000.00	-
640	Professional Fees	1,500.00	-
672	Depreciation - Building	-	-
675	Depreciation - Equipment	-	-
676	Depreciation - Vehicles	-	-
690	Insurance	1,000.00	-
760	Equipment Rent	1,000.00	-
770	Repairs and Maintenance	1,000.00	-
810	Interest Income	-	250.00
820	Interest Expense	2,500.00	-
900	Personal Property Taxes	1,000.00	-
	Totals	$266,100.00	$266,100.00

need to come up with Income Statement, Balance sheet, and statement of equity

Income Statement
Revenues:
Book Sales
Interest Income

Expenses:
Cost of sales
Wages
Utilities
Advertising
Professional Fees
Depreciation - Building
Depreciation - Equipment
Depreciation - Vehicles
Insurance
Equipment Rent
Repairs and Maintenance
Interest Expense
Personal Property Taxes
Net Income
------------------------------------------
Balance Sheet
Assets:
Cash
Accounts Receivable
Inventory
Prepaid Insurance
Land
Building
Equipment
Vehicles
Total Assets:

Liabilities:
Line of Credit
Accounts Payable
Interest Payable
Sales Tax Payable
Book Deposits
Notes Payable
Total Liabilities

Equity (Capital)
Total Liabilities & Equity
-----------------------------------------
Statement of Equity (Capital)
Beginning Capital
Add: Net Income
Less: Drawing (Dividends)
Ending Capital

Solutions

Expert Solution

1) Income Statement (Amounts in $)

Revenues:
Book Sales (net) (180,500-2,500-2,000) (Note 1)	176,000
Interest Income	250
Total Revenue (A)	176,250
Expenses:
Cost of Sales (Note 2) (110,900+2,000-2,000-2,000)	108,900
Wages	20,000
Utilities	10,000
Advertising	10,000
Professional Fees	1,500
Depreciation-Building	0
Depreciation-Equipment	0
Depreciation-Vehicles	0
Insurance	1,000
Equipment Rent	1,000
Repair and Maintenance	1,000
Interest Expense	2,500
Personal Property Taxes	1,000
Total Expenses (B)	156,900
Net Income (A-B)	19,350

Notes:-

1) Book sales given in income statement are after deducting sales discounts and sales returns.

2) It is assumed that the inventory given in the ledger account is closing inventory and adjusted from book purchases. Cost of sales is equal to book purchases plus freight in minus purchase returns and purchase discounts.

2) Balance Sheet (Amounts in $)

Assets:
Cash	2,500
Accounts Receivable	2,500
Inventory	4,200
Prepaid Insurance	200
Land	20,000
Building (net) (50,000-13,500)	36,500
Equipment (net) (7,500-5,250)	2,250
Vehicles (net) (8,000-2,000)	6,000
Total Assets	74,150
Liabilities:
Line of Credit	25,000
Accounts Payable	1,500
Interest Payable	0
Sales Tax Payable	1,100
Book Deposit	0
Notes Payable	0
Total Liabilities	27,600
Equity (Capital) (from part 3)	46,550
Total Liabilities and Equity	74,150

3) Statement of Equity (Capital) (Amounts in $)

Beginning Capital	33,000
Add: Net Income	19,350
Less: Drawing (Dividends)	(5,800)
Ending Capital	46,550

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

CHART OF ACCOUNTSBeartooth Co.General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory...

CHART OF ACCOUNTSBeartooth Co.General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610...

Rank in order of liquidity: Accounts Receivable Accumulated Depreciation - Equipment Cash Equipment Prepaid Insurance Prepaid...

Rank in order of liquidity: Accounts Receivable Accumulated Depreciation - Equipment Cash Equipment Prepaid Insurance Prepaid Rent Rent Revenue Supplies

Account Dr Cr Cash 120,000 Accounts Receivable 45,000 Investments 50,000 Inventory 65,000 Prepaid Insurance 10,000 Note...

Account Dr Cr Cash 120,000 Accounts Receivable 45,000 Investments 50,000 Inventory 65,000 Prepaid Insurance 10,000 Note Receivable 50,000 Equipment 190,000 Patent 80,000 A/C Payable 58,000 Unearned Revenue 6,000 Bank Loan Payable 100,000 Common Stock 102,000 Retained Earnings 295,000 Dividends 5,000 Sales 1,620,000 Dividend income 3,000 Cost of Goods Sold 1,000,000 Salaries Exp 300,000 Accounting Exp 75,000 Advt Exp 70,000 Rent Exp 100,000 Utilities Exp 20,000 Miscellaneous Expense 4,000 Total 2,184,000 2,184,000 Prepare adjusting journal entries. a) Audit of cash in...

7. CHART OF ACCOUNTS Lawn Spray Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131...

7. CHART OF ACCOUNTS Lawn Spray Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in...

Solve the follwing problem. CHART OF ACCOUNTSBeartooth Co.General Ledger ASSETS 110 Cash 120 Accounts Receivable 125...

Solve the follwing problem. CHART OF ACCOUNTSBeartooth Co.General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary...

CHART OF ACCOUNTS Elite RealtyGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14...

CHART OF ACCOUNTS Elite RealtyGeneral Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on...

Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building...

Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building 124 Pool/Slide Facility 125 Accumulated Depreciation, Pool/Slide Facility 126 Pool Furniture 127 Accumulated Depreciation, Pool Furniture Liabilities 221 Accounts Payable 222 Wages Payable 223 Mortgage Payable Owner's Equity 311 L. Judar, Capital 312 L. Judar, Drawing 313 Income Summary Revenue 411 Income from Services 412 Concessions Income Expenses 511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities...

Trial balance Debit Credit Cash 15300 Accounts receivable 10800 Inventory 1/1/20 3800 Prepaid insurance 2000 Equipment...

Trial balance Debit Credit Cash 15300 Accounts receivable 10800 Inventory 1/1/20 3800 Prepaid insurance 2000 Equipment 37000 Accumulated depreciation 5600 Notes payable 1500 Accounts payable 6100 Unpaid salaries 3600 Share capital 3000 Retained earnings 10600 Dividends 5300 Sale 81000 Purchase of inventory 24600 Market cost 4600 Insurance 3500 Salaries 18000 Total 124900 124900 The inventory costing was 1500. Notes payable was taken at the beginning of 2018 to five years, 5% interest, the interests are paid at the beginning of...

Prepare a Post-Closing Trial Balance Cash – 1,270,676 Accounts Receivable – 190,300 Prepaid Insurance – 17,400...

Prepare a Post-Closing Trial Balance Cash – 1,270,676 Accounts Receivable – 190,300 Prepaid Insurance – 17,400 Land – 75,000 Short-term Investments – 167,000 Fair value adjustment (Trading) – (8,000) Allowance for doubtful accounts – 25,000 LT (Debt) investments (HTM) – 177,824 Bonds Payable – 1,600,000 Premium on Bonds Payable – 118,630 Building – 150,000 Accumulated depreciation: building – 5,400 Equipment – 50,000 Accumulated depreciation: equipment – 29,359 Patent – 37,500 Accounts Payable – 65,340 Notes Payable – 236,175 Income Taxes...

Assets Cash $ 57,400 $ 78,500 Accounts receivable 73,320 55,625 Inventory 283,156 256,800 Prepaid expenses 1,260...

Assets Cash $ 57,400 $ 78,500 Accounts receivable 73,320 55,625 Inventory 283,156 256,800 Prepaid expenses 1,260 1,995 Total current assets 415,136 392,920 Equipment 152,500 113,000 Accum. depreciation—Equipment (39,125 ) (48,500 ) Total assets $ 528,511 $ 457,420 Liabilities and Equity Accounts payable $ 58,141 $ 122,175 Short-term notes payable 11,500 7,000 Total current liabilities 69,641 129,175 Long-term notes payable 62,500 53,750 Total liabilities 132,141 182,925 Equity Common stock, $5 par value 172,750 155,250 Paid-in capital in excess of par, common...

Subjects