In: Accounting
.
NEED ANSWER ASAP
Financial Data of Bob's Bacon House Inc. as of January 1, 20XX
Accounts Payable | 200,500 |
Account Receivable | 165,700 |
Accumulated Depreciation's | 350,000 |
Additional Paid-In Capital | 40,000 |
Allowance for Doubtful Accounts | 2,650 |
Building and Equipment | 1,120,000 |
Cash | 45,300 |
Common Stock | 544,850 |
Copyrights | 112,000 |
Customer Deposits (expected to be paid in 20XX) | 375 |
Goodwill | 225,000 |
Income Taxes Payable | 42,340 |
Inventories @ $25/unit | 315,250 |
Long-term Investments in Warren Co. | 95,630 |
Deposits With Vendors | 47,200 |
Land | 125,000 |
Mortgage Payable ($2,780 per month) | 667,200 |
2% Notes Payable to Banks (due 20XX) | 26,000 |
Notes Receivable (due 20XX) | 16,000 |
Patents | 219,335 |
Retained Earnings | 127,500 |
Trademarks | 115,000 |
Twenty-year, 3% Bonds, Due 1/1/20XX | 600,000 |
Financial Data of Bob's Bacon House Inc. for the Year 20XX
1 | Finished Goods inventory purchased from suppliers on account.
2/10/20XX 10,000 units @ $26 each 6/12/20XX 15,000 units @ $28 each 10/23/20XX 12,000 units @ $29 each 11/25/20XX 8,000 units @ $30 each Bob's Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account. |
2 | Payments made to suppliers on account during 20XX are $1,124,450. |
3 | Sales made to customers on account are 49,356 units @ $36 each. |
4 | Cash collected from customers during 20XX is $1,750,700. |
5 | Total interest paid on notes payable and bonds payable amounted to $17,415. |
6 | Rental income on property leased out is $25,650. |
7 | Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800. |
8 | Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX. |
9 | Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. |
10 | Income tax expense paid is $90,500. Bob's Bacon House income tax rate for 20XX is 30%. |
grading format
Category | Points | % | Description |
---|---|---|---|
Account Selection | 15 | 10 | Make proper selection of accounts relative to the balance sheet or the income statement. From the provided listing of accounts, determine which accounts are balance sheet accounts and which accounts are income statement accounts. |
Subgroup Functionality | 15 | 10 | Put the accounts into the proper subgroup according to functionality. Each account belongs to a particular subgroup. The student is to determine to which subgroup the account belongs. This should be done according to functionality. |
Balance Sheet | 60 | 40 | Prepare the balance sheet in good form with correct amount of financial items. Proper form is important in the preparation of the balance sheet. Examples can be found in the text. |
Income Statement | 45 | 30 | Prepare the income statement in good form with correct amount of financial items. Proper form is important in the preparation of the income statement. Examples can be found in the text. |
Computation Results | 15 | 10 | Show full work of computation to arrive at the correct amount of financial items. |
Total | 150 | 100 | A quality paper will meet or exceed all of the above requirements. |
The groups and sub groups for different accounts are listed below.
Cost of goods sold could not be arrived at as the sales quantity is 49,356 units and the current year purchase is 45,000 units. This means there is a sale of 4,356 units from the beginning stock.As the no.of units in beginning stock is not given we cannot arrive at the the cost of the inventory sold from the beginning stock.
The opening balance sheet is given below.
The closing balance for some of the accounts are given below.