Question

SCOTT MUELLER DISTRIBUTING COMPANY

                                                                   Adjusted Trial Balance

                                                                       December 31, 2019

                                                                                                                                                                     

		DR.		CR.
Cash....................................................................................		$12,820
Accounts Receivable......................................................		2,700
Inventory............................................................................		8,720
Supplies.............................................................................		1,500
Equipment.........................................................................		22,000
Accumulated Depreciation—Equipment...................				$ 2,400
Accounts Payable...........................................................				4,500
Salaries and Wages Payable........................................				800
Income Taxes Payable...................................................				200
Common Stock................................................................				15,000
Retained Earnings...........................................................				24,300
Sales Revenue.................................................................				18,300
Sales Discounts...............................................................		360
Cost of Goods Sold.........................................................		12,100
Depreciation Expense....................................................		200
Salaries and Wages Expense.......................................		3,200
Supplies Expense...........................................................		1,700
Income Tax Expense......................................................		200
		$65,500		$65,500

Prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31^st, 2019.

Answer 1

Answer-

SCOTT MUELLER DISTRIBUTING COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31,2019
PARTICULARS		AMOUNT
		$
Net Sales revenue		17940
Sales revenue	18300
Less- Sales discounts	360
Less-Cost of goods sold		12100
Gross profit		5840
Less- Expenses
Salaries & wages expense	3200
Supplies expense	1700
Depreciation expense	200
Income tax expense	200
Total expenses		5300
Net profit		540

SCOTT MUELLER DISTRIBUTING COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31,2019		Amount
		$
Retained earnings December 31 prior year end		24300
Add- Net income		540
Less- Dividends		0
Retained earnings, December 31 Current year end		24840

SCOTT MUELLER DISTRIBUTING COMPANY
BALANCE SHEET
DECEMBER 31,2019
Assets		Amount
		$
Current Assets		25740
Cash	12820
Accounts receivable	2700
Supplies	1500
Inventory	8720
Non Current Assets
Equipment	22000	19600
Less- Accumulated depreciation	2400
Total Assets		45340
Liabilities
Current liabilities		5500
Accounts payable	4500
Salaries & wages payable	800
Income tax payable	200
Shareholder equity		39840
Common stock	15000
Retained earnings	24840
Total liabilities and Shareholder's equity		45340