Question

NEED ANSWER ASAP

• Read the given financial data of Bob's Bacon House Inc.
• Determine which accounts belong to the balance sheet and which accounts belong to the income statement.
• Determine to which subgroup of balance sheet or income statement each account belongs.
• Compute the correct account balances that should be reported in balance sheet and correct amounts of revenues and expenses that should be reported in income statement.
• Arrange the accounts in proper order and functionality.
• Prepare a comprehensive balance sheet in good form.
• Prepare a multistep income statement in good form.

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.

Answer 1

		Classification	Sub Group Classification
Accounts Payable	$    200,500.00	liabilities	Current Liability
Account Receivable	$    165,700.00	asset	Current Asset
Accumulated Depreciation's	$    350,000.00	liabilities	To be deducted from Fixed Asset
Additional Paid-In Capital	$     40,000.00	liabilities	Owners Equity
Allowance for Doubtful Accounts	$       2,650.00	liabilities	To be deducted from Accounts Receivable
Building and Equipment	$ 1,120,000.00	asset	Fixed Asset
Cash	$     45,300.00	asset	Current Asset
Common Stock	$    544,850.00	liabilities	Owners Equity
Copyrights	$    112,000.00	asset	Intangible Asset
Customer Deposits (expected to be paid in 20XX)	$          375.00	liabilities	Current Liability
Goodwill	$    225,000.00	asset	Intangible Asset
Income Taxes Payable	$     42,340.00	liabilities	Current Liability
Inventories @ $25/unit	$    315,250.00	asset	Current Asset
Long-term Investments in Warren Co.	$     95,630.00	asset	Non current Asset
Deposits With Vendors	$     47,200.00	asset	Current Asset
Land	$    125,000.00	asset	Fixed Asset
Mortgage Payable ($2,780 per month)	$    667,200.00	liabilities	Current Liability
2% Notes Payable to Banks (due 20XX)	$     26,000.00	liabilities	Current Liability
Notes Receivable (due 20XX)	$     16,000.00	asset	Current Asset
Patents	$    219,335.00	asset	Intangible Asset
Retained Earnings	$    127,500.00	liabilities	Owners Equity
Trademarks	$    115,000.00	asset	Intangible Asset
Twenty-year, 3% Bonds, Due 1/1/20XX	$    600,000.00	liabilities	non current liability
Sales [49356units*$36]	$ 1,776,816.00	revenue	Income from Operation
Rental Income	$     25,650.00	revenue	Other Income
Purchases	$ 1,268,000.00	expense	Operating Expense
Selling & Administration	$    128,475.00	expense	Selling & Administration Expense
Loss on Sale of Asset	$     35,800.00	expense	Selling & Administration Expense
Interest Payable	$        17,415.00	expense	Selling & Administration Expense
Bad debt	$          1,186.00	expense	Selling & Administration Expense
WN 1: Calculation of purchases
2/10/20XX 10,000 units @ $26 each	$      260,000.00
6/12/20XX 15,000 units @ $28 each	$      420,000.00
10/23/20XX 12,000 units @ $29 each	$      348,000.00
11/25/20XX 8,000 units @ $30 each	$      240,000.00
	$ 1,268,000.00
Income Statement
Income:
Income from Operation:
Sales	$ 1,776,816.00
Other Income:
Rental Income	$        25,650.00
Total Income	$ 1,802,466.00
Expenses
Operating Expense
Opening Stock	$      315,250.00
Add: Purchases	$ 1,268,000.00
Less: Closing Stock	$   (206,350.00)
COGS	$ 1,376,900.00
Selling & Administration:
Selling & Administration	$      128,475.00
Loss on sale of Asset	$        35,800.00
Interest Payable	$        17,415.00
Bad Debt	$          1,186.00
Total Expense	$      182,876.00
Net Profit	$      242,690.00
Comprehensive Balance Sheet
Liabilities	Amount	Asset	Amount
Accounts Payable	$      416,525.00	Accounts Receivable	$                        191,816.00
Customer Deposit	$              375.00	Less: Doubtful Debts	$                          (3,836.00)
Income Tax Payable	$        42,340.00	Cash	$                        756,400.00
Mortgage Payable	$      667,200.00	Inventory	$                        206,350.00
2% Notes Payable	$        43,415.00	Deposit with Vendor	$                          47,200.00
Total Current Liability	$ 1,169,855.00	Notres Receivable	$                          16,000.00
			$                    1,213,930.00
Non Current Liability
Twenty-year, 3% Bonds, Due 1/1/20XX	$      600,000.00	Non Current Asset
		Long Term Investment	$                          95,630.00
Total Liability	$ 1,769,855.00	Fixed Asset
		Building & Equipment	$                    1,120,000.00
Owners Equity		Less: Accumulated Dep	$                     (406,000.00)
Common Stock	$      544,850.00	Less: Asset Sold	$                        (95,000.00)
Additional Paid in Capital	$        40,000.00		$                        619,000.00
Retained Earnings	$      127,500.00	Land	$                        125,000.00
Add: Income of Current Year	$      242,690.00	Intangible Asset
Total Equity	$      955,040.00	Copy Right	$                        112,000.00
		Goodwill	$                        225,000.00
		Patent	$                        219,335.00
		Trademark	$                        115,000.00
			$                        671,335.00
Total Liability & Equity	$ 2,724,895.00	Total Asset	$                    2,724,895.00
		No of units
Opening Stock		12610	[315250/25]
Purchases		45000
Less: Sales		-49356
Closing Stock		8254
Cost of Closing Stock using LIFO
Out of opening Stock: 8254 units @$25		$                                      206,350.00