Question

Bryant Corporation has provided the following information for the most recent quarter, July 1 through September 30 of 2020. Prepare a multiple-step Income Statement and the Asset section of a classified Balance Sheet, including the correct headings.

Specific Account	Balance	Specific Account	Balance
Accounts Payable	$30	Insurance Payable	$1
Accounts Receivable	136	Interest Expense	17
Accumulated Depreciation (Buildings)	30	Interest Payable	4
Accumulated Depreciation (Equipment)	7	Inventory	75
Allowance for Doubtful Accounts	13	Land	145
Bad Debt Expense	4	Notes Payable (maturity of less than 1 yr)	40
Bank Fees Expense	1	Notes Payable (maturity of more than 1 yr)	55
Buildings	170	Retained Earnings (beginning)	120
Cash	125	Sales Discounts	15
Common Stock	204	Sales Returns & Allowances	5
Cost of Goods Sold	375	Sales Revenue	750
Depreciation Expense	14	Supplies	6
Dividends	17	Supplies Expense	12
Equipment	90	Unearned Sales Revenue	27
Freight-Out	3	Wages Expense	24
Gain on Sale of PPE	9	Wages Payable	31
Income Tax Expense	87

Answer 1

Bryant Corporation
Income Statement
For Quarter  Ended  July 1 through September 30 of 2020
Sales revenue	$          750
Less:  Sales discounts taken	$            15
Sales returns and allowances	$              5
Net sales		$             730
Cost of goods sold		$             375
Gross profit on sales		$             355
Operating expenses
Administrative expenses
Wages Expense	$            24
Supplies Expense	$            12
Bank Fees Expense	$              1
Depreciation Expense	$            14
Total Administrative Exp.		$               51
Selling expenses
Bad Debt Expense	$              4
Freight-Out	$              3
Total Selling exp.		$                 7
Total operating expenses		$               58
Income from operations		$             297
Other items
Gain on Sale of PPE		$                 9
Interest expense		$             (17)
Income before income taxes		$             289
Income tax expense		$             (87)
Net Income		$             202

Bryant Corporation
Balance sheet
Assets
Current Assets
Cash		125
Account Receivables	136
Less: Allowance for Doubtful Accounts	-13	123
Supplies		6
Inventory		75
Total current Assets		254
Plant and Equipment
Land		145
Buildings	170
Accumulated Depreciation (Buildings)	-30	140
Equipment	90
Accumulated Depreciation (Equipment)	-7	83
Total Assets		622