In: Accounting
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position):
Cash $ 3,700
Accounts receivable 5,900
Supplies inventory 29,300
Land 168,500
Buildings 116,500
Accumulated depreciation, buildings 37,500
Equipment 58,500
Accumulated depreciation, equipment 18,000
Accounts payable 25,200
Income tax payable 16,600
Interest payable 4,200
Wages payable (due in 2020) 15,700
9% Notes payable ($10,000 due June 30, 2021,
balance due June 30, 2022) 61,500
Common shares 151,500
Retained earnings, Dec. 31, 2019 52,200
Transactions during 2020:
1.The company provided sales services to customers, on credit, for $ 210,300. In addition, the company produced cash sales to customers of $ 62,300.
2.Accounts receivable from customers of $ 15,600 remain to be collected at December 31, 2020.
3.Inventory of $ 62,900 was purchased on credit and debited to the supplies inventory account.
4.Minor parts were purchased with cash for $ 7,400 and debited to the supplies inventory account.
5.Wages payable at the beginning of 2020 were paid early in 2020. In addition, wages were earned by employees and paid during 2020 in the amount of $ 112,000.
6.Income tax payable at the beginning of 2020 was paid early in 2020.
7.Payments of $ 73,000 were made to creditors for supplies previously purchased on credit.
8.One year’s interest at 9% was paid on the notes payable at July 1, 2020.
9. During 2020, Don Tallint, the principal shareholder, purchased a new car for his wife
Debbie. The new car cost $ 45,000 and was paid for with cash from personal sources.
10.Property taxes were paid on the land and buildings in the amount of $ 17,000 with cash.
11.Dividends were declared and paid in caah in the amount of $ 7,200.
Information available for year end adjusting entries:
12.•Supplies inventory was counted on December 31, 2020 and it was determined the supplies inventory still on hand at yearend was $ 31,900.
13. •Annual depreciation on the buildings is $ 6,000.
14•Annual deprecation on the equipment is $ 5,500
15•Additional wages of $4,000 were earned but are unpaid and unrecorded at December 31, 2020.
16•Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020.
17•Income taxes of $ 16,500 were unpaid and unrecorded at December 31, 2020.
Required:
Prepare a single step income statement for Marmidan Mold Shop Inc. for the year ended December 31, 2020. (Please record on the electronic worksheet)
Marmidan Mold Shop Inc. | ||
Single Step Income Statement | ||
For the Year Ended December 31, 2020 | ||
Sales | 272,600 | |
Operating expenses | ||
Wages expense | 116,000 | |
Supplies expense | 67,700 | |
Property tax expense | 17,000 | |
Depreciation expense | 11,500 | |
Interest expense | 4,103 | |
Income tax expense | 16,500 | |
Total Operating expenses | 232,803 | |
Net Income | 39,798 |
Marmidan Mold Shop Inc. | ||||
Journal entries | ||||
Date | Account | Debit | Credit | Calculation |
1 | Cash | $ 62,300 | ||
Accounts Receivable | $ 210,300 | |||
Sales | $ 272,600 | |||
2 | Cash | $ 200,600 | 5900+210300-15600 | |
Accounts Receivable | $ 200,600 | |||
3 | Supplies Inventory | $ 62,900 | ||
Accounts Payable | $ 62,900 | |||
4 | Supplies Inventory | $ 7,400 | ||
Cash | $ 7,400 | |||
5 | Wages payable | $ 15,700 | ||
Wages expense | $ 112,000 | |||
Cash | $ 127,700 | |||
6 | Income tax payable | $ 16,600 | ||
Cash | $ 16,600 | |||
7 | Accounts Payable | $ 73,000 | ||
Cash | $ 73,000 | |||
8 | Interest Payable | $ 4,200 | ||
Interest expense | $ 1,335 | |||
Cash | $ 5,535 | 61500*9% | ||
9 | No entry | |||
$ - | ||||
10 | Property tax expense | $ 17,000 | ||
Cash | $ 17,000 | |||
11 | Dividends | $ 7,200 | ||
Cash | $ 7,200 | |||
Adjusting entries | ||||
12 | Supplies expense | $ 67,700 | ||
Supplies Inventory | $ 67,700 | |||
13 | Depreciation expense | $ 6,000 | ||
Accumulated depreciation, buildings | $ 6,000 | |||
14 | Depreciation expense | $ 5,500 | ||
Accumulated depreciation, equipment | $ 5,500 | |||
15 | Wages expense | $ 4,000 | ||
Wages payable | $ 4,000 | |||
16 | Interest expense | $ 2,768 | 61500*9%*6/12 | |
Interest Payable | $ 2,768 | |||
17 | Income tax expense | $ 16,500 | ||
Income tax payable | $ 16,500 |
Marmidan Mold Shop Inc. | Adjusted TB | ||
Account Names | Debit | Credit | |
Cash | 12,165 | ||
Accounts Receivable | 15,600 | ||
Supplies Inventory | 31,900 | ||
Land | 168,500 | ||
Buildings | 116,500 | ||
Accumulated depreciation, buildings | 43,500 | ||
Equipment | 58,500 | ||
Accumulated depreciation, equipment | 23,500 | ||
Accounts Payable | 15,100 | ||
Income tax payable | 16,500 | ||
Interest Payable | 2,768 | ||
Wages payable | 4,000 | ||
Notes Payable | 61,500 | ||
Common Stock | 151,500 | ||
Retained Earnings | 52,200 | ||
Dividends | 7,200 | ||
Sales | 272,600 | ||
Wages expense | 116,000 | ||
Supplies expense | 67,700 | ||
Property tax expense |
Related SolutionsMarmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...Marmidan Mold Shop Inc. designs and builds molds for the
automotive and aircraft industries. The account balances in the
company’s general ledger on January 1, 2020 (first day of the new
annual fiscal year) were as follows (all account balances are in
their normal position):
Cash
$
3,700
Accounts
receivable
5,900
Supplies
inventory
29,300
Land
168,500
Buildings
116,500
Accumulated depreciation,
buildings
37,500
Equipment
58,500
Accumulated depreciation,
equipment
18,000
Accounts
payable
25,200
Income tax
payable
16,600
Interest
payable
4,200
Wages payable...
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