Question

Prepare the worksheet, income statement, statement of owner's equity and balance sheet using the following information.

Account Balances of Cross Lumber

Account No.
110	Cash	1300
111	Accounts Receivable	1280
112	Merchandise Inventory	4300
113	Lumber Supplies	267
114	Prepaid Insurance	209
121	Lumber Equipment	3300
122	Acc. Dep. Lumber Equipment	530
220	Accounts Payable	1200
221	Wages Payable	-
330	J. Cross, Capital	5761
331	J. Cross, Withdrawls	2700
332	Income Summary	-
440	Sales	23200
441	Sales Returns and Allowances	230
550	Purchases	14500
551	Purchases Discount	325
552	Purchases Returns and Allowances	340
660	Wages Expense	2120
661	Advertising Expense	370
662	Rent Expense	780
663	Dep. Exp., Lumber Equipment	-
664	Lumber Supplies Expense	-
665	Insurance Expense	-

a./b. Merchandise inventory, Dec. 31 $4700

c. Lumber supplies on hand, Dec. 31 $75

d. Insurance expired $120

e. Depreciation for the year $210

f. Accrued wages on Dec. 31 $135

Answer 1

CROSS LUMBER
Income Statement
For the Period Ended Dec 31
Sales Revenue
Sales	23,200.00
Less: Sales Return and Allowances	230.00
Net Sales		22,970.00
Cost of Goods Sold:
Purchases	14,500.00
Less: Purchases Discount	325.00
Less: Purchases Return and Allowances	340.00
Net Purchases	13,835.00
Add: Beginnig Inventory	4,300.00
Cost of Goods Available for Sale	18,135.00
Less: Ending Inventory	4,700.00
Cost of Goods Sold		13,435.00
Gross Profit		9,535.00
Selling & Admn. Expenses
Wages Expense ($2,120 + $135)	2,255.00
Advertising Expense	370.00
Rent Expense	780.00
Depreciation Expense - Lumber Equipment	210.00
Lumber Supplies Expense ($267 - $75)	192.00
Insurance Expense	120.00	3,927.00
Net Income		5,608.00
CROSS LUMBER
Statement of Owners' Equity
For the Period Ended Dec 31
J. Cross, Capital - Beginning Balance		5,761.00
Net Income	5,608.00
J. Cross, Withdrawls	(2,700.00)
Net Increase (Decrease) in Net Income		2,908.00
J. Cross, Capital - Ending Balance		8,669.00
CROSS LUMBER
Balance Sheet
Dec 31
Assets
Current Assets
Cash	1,300.00
Accounts Receivable	1,280.00
Merchandise Inventory	4,700.00
Lumber Supplies	75.00
Prepaid Insurance ($209 - $120)	89.00	7,444.00
Property, Plant & Equipment
Lumber Equipment	3,300.00
Less: Acc. Dep. Lumber Equipment	740.00	2,560.00
Total Assets		10,004.00
Liabilities & Owners' Equity
Liabilities
Current Liabilities
Accounts Payable	1,200.00
Wages Payable	135.00	1,335.00
Total Liabilities		1,335.00
Owners' Equity
J. Cross, Capital		8,669.00
Total Liabilities & Owners' Equity		10,004.00