Question

Determine the missing amounts for the missing line items. The following statements reflect the year ended December 31, 2017, for a proprietorship. Determine the missing amounts. The owner invested an additional $18,000 in the business during 2017 and withdrew amounts totaling $3,200 each month throughout the year.

Income statement for the year ended December 31, 2017

Sales ?

Cost of goods sold $191,500

Gross profit $196,000

Operating Expenses:

Salaries $54,510

Insurance ?

Rent $18,650

Depreciation $17,100

Supplies $2,100

Total Operating Expenses $98,600

Operating Icome $97,400

Income Taxes $28,380

Net Income ?

Statement of Retained Earning

Owner Capital, January 1, 2017 $254,800

Owner Investment during 2017 $18,000

Net Income, 2017 ?

Owner Withdrawals ?

Owner Capital, Dec. 31, ?

Balance Sheet Dec. 31,

Current Assets:

Cash ?

Accounts Receivable $9,340

Prepaid Insurance $5,800

Supplies $2,850

Total Current assests $21,100

Property,Plant and Equipment:   

Building, net $256,900

Computers,net $12,650

Furniture and Fixtures $18,430

Vehicles $52,800

Land $150,250

Total Propery,Plant and Equipment $491,030

Total Assest ?

Current Liabilities:

Account Payable $12,495

Salaries and Wages payable $8,570

Customer refund payable $980

Employees Fed. Tax payable $1,027

Federal Unemployment tax $387

Medicare tax $110

Notes payable-current $6,500

Total Current Liabilities $30,069

Long-Term Liablilities:

Mortgage Payable $121,485

Notes Payable ?

Total Long-Term Liabilities ?

Total Liabilities $208,610

Owners' Equity:

Owner, Capital Account ?

Total Liabilities and Owners Equity $512,030

Answer 1

• All working forms part of the answer
• Working column is added to show how the ‘missing figures’ have been calculated.
• Answers

Working	Income Statement
A=B+C	Sales	$       3,87,500.00
B	Cost of goods sold	$       1,91,500.00
C	Gross profit	$       1,96,000.00
	Operating Expenses:
D	Salaries	$           54,510.00
E=I - D-F-G-H	Insurance ?	$             6,240.00
F	Rent	$          18,650.00
G	Depreciation	$           17,100.00
H	Supplies	$             2,100.00
I	Total Operating Expenses	$           98,600.00
J	Operating Income	$           97,400.00
K	Income Taxes	$           28,380.00
L=J-K	Net Income ?	$           69,020.00

Statement of Retained Earnings
Owner Capital, January 1, 2017	$       2,54,800.00
Owner Investment during 2017	$           18,000.00
Net Income, 2017 ?	$           69,020.00
Owner Withdrawals [3200 x 12 months]	$        (38,400.00)
Owner Capital, Dec. 31	$       3,03,420.00

Working	Balance Sheet Dec 31
	Current Assets:
A=E-B-C-D	Cash	$             3,010.00
B	Accounts Receivables	$             9,340.00
C	Prepaid Insurance	$             5,800.00
D	Supplies	$             2,850.00
E	Total current assets		$         21,000.00
	Property, Plant and Equipment:
	Building, net	$       2,56,900.00
	Computers, net	$           12,650.00
	Furniture and Fixtures	$           18,430.00
	Vehicles	$           52,800.00
	Land	$       1,50,250.00
	Total Property, Pant & Equipment		$      4,91,030.00
	TOTAL ASSETS		$      5,12,030.00
	Current Liabilities:
	Account Payable	$           12,495.00
	Salaries and Wages payable	$             8,570.00
	Customer refund payable	$                 980.00
	Employees Fed. Tax payable	$             1,027.00
	Federal Unemployment tax	$                 387.00
	Medicare tax	$                 110.00
	Notes payable-current	$             6,500.00
F	Total Current Liabilities		$         30,069.00
	Long-Term Liablilities:
J	Mortgage Payable	$       1,21,485.00
G=H - J	Notes Payable ?	$           57,056.00
H=I-F	Total Long-Term Liabilities ?		$      1,78,541.00
I	Total Liabilities		$      2,08,610.00
	Owners' Equity:
	Owner, Capital Account		$      3,03,420.00
	Total Liabilities and Owners Equity		$      5,12,030.00