Question

) Using the following information for Campbell Enterprises, prepare an annual:

                   Multiple-step income statement

                   Retained earnings statement

                   Classified balance sheet (7 points)

Campbell Enterprises, Inc.

Adjusted Trial Balance

December 31, 2016

                                                                                         Debit                    Credit

Cash                                                                   4,000

Accounts Receivable                                       15,000

Inventory                                                         30,000

Prepaid Insurance                                              4,000

Supplies                                                             3,000

Long-term Investment in Stock                         6,000

Land                                                                 20,000

Buildings                                                       120,000

Accumulated Depreciation—

Buildings                                                                                     20,000

Patents                                                             10,000

Accounts Payable                                                                          10,000

Unearned Revenue                                                                          2,000

Bonds Payable (due in 2023)                                                         20,000

Common Stock                                                                              80,000

Retained Earnings                                                                          44,000

Dividends                                                         30,000

Sales Revenue                                                                              305,000

Interest Revenue                                                                              5,000

Sales Discounts                                                  6,000

Sales Returns & Allowances                             8,000

Cost of Goods Sold                                        188,000

Salaries and Wages Expense                           21,000

Depreciation Expense                                      10,000

Utilities Expense                                                5,000

Insurance Expense                                             3,000

Supplies Expense                                               2,000

Interest Expense                                               1,000                                       

                                                                       486,000                 486,000

Campbell Enterprises, Inc. Income Statement

Campbell Enterprises, Inc. Retained Earnings Statement
Campbell Enterprises, Inc. Balance Sheet

b) Using the above information, compute Campbell’s gross profit rate. Please show the details of

            your computation: (1 point)

Gross profit rate            ____________________________________________

Answer 1

	Campbell Enterprises Inc.
	Multi Step Income Statement
	For the Year Ended December 31st 2016
	Net Sales=($305000-$6000-$8000)		$    291,000.00
	Cost of goods sold		$    188,000.00
	Gross Profit		$    103,000.00
	Operating Expenses
	Administerative & Selling Expenses
	Salaries & Wages	$      21,000.00
	Supplies Expenses	$        2,000.00
	Depreciation Expense	$      10,000.00
	Utilties Expenses	$        5,000.00
	Insurance	$        3,000.00
	Total Operting Expenses		$      41,000.00
	Operating Income		$      62,000.00
	Non Operating & Others
	Interest Revenue	$        5,000.00
	Dividend Paid	$    (30,000.00)
	Interest Expense	$      (1,000.00)	$    (26,000.00)
	Net Income befor tax		$      36,000.00
	Campbell Enterprises Inc.
	Balane sheet at December 31st,2016
	Assets
	Current Assets
	Cash	$        4,000.00
	Accounts receivable net	$      15,000.00
	Mercendise Inventory	$      30,000.00
	Prepaid Insurane	$        4,000.00
	Supplies	$        3,000.00
	Long Term Investment in Stock	$        6,000.00
	Land	$      20,000.00
	Building , Net(Cost-Accumulated Depreciation)	$    100,000.00
	Patent	$      10,000.00
	Total Assets	$    192,000.00
	Liabilites & Shareholder's Equity
	Accounts Payable	$      10,000.00
	Unearned Revenue	$        2,000.00
	Bonds Payable	$      20,000.00
	Common stock	$      80,000.00
	Retained Earnings=($44000+$36000)	$      80,000.00
	Total Liabilities and Net assets	$    192,000.00
	Gross Profit Rate=Gross Profit/Net Sales
	Gross Profit=Net sales-cost of goods sold	$    103,000.00
	Sales	$    291,000.00
	Gross Profit Rate=	35.40%
	Net Sales=Sales-Sales discount-Sales return & allowances=($305000-$6000-$8000)	$    291,000.00