Assets Cash 268,000 180,000 280,000 Accounts receivable 200,000 Supplies Prepaid insurance Prepaid rent Inventory Total current assets 20,000 40,000 30,000 22,000 60,000 24,000 270,000 824,000 480,000 300,000 870,000 480,000 Equipment Accumulated depreciation (100,000) 80,000 (80,000) 80,000 110,000 1,414,000 Land Other non-current assets 100,000 1,430,000 Total assets
Assets Cash 268,000 180,000 280,000 Accounts receivable 200,000 Supplies Prepaid insurance Prepaid rent Inventory Total current assets 20,000 40,000 30,000 22,000 60,000 24,000 270,000 824,000 480,000 300,000 870,000 480,000 Equipment Accumulated depreciation (100,000) 80,000 (80,000) 80,000 110,000 1,414,000 Land Other non-current assets 100,000 1,430,000 Total assets
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...
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Question
How much supplies did the company purchase during Year 2? Show your work.
![Income statement Year ended Dec. 31, Year 2
Revenues
Total sales revenues
S 1,560,000
Expenses
Cost of goods sold
Wages expense
Supplies expense
Rent expense
Depreciation expense
Insurance expense
Utilities expense
Interest expense
Total expenses
668,000
186,000
46,000
120,000
20,000
100,000
165,000
84,000
1,389,000
$ 171,000
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed2c783-41ee-4156-82bc-325ce490e43b%2F66cf14a7-33d1-40f8-a3bd-eac9b67bad89%2Fwcagpmy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income statement Year ended Dec. 31, Year 2
Revenues
Total sales revenues
S 1,560,000
Expenses
Cost of goods sold
Wages expense
Supplies expense
Rent expense
Depreciation expense
Insurance expense
Utilities expense
Interest expense
Total expenses
668,000
186,000
46,000
120,000
20,000
100,000
165,000
84,000
1,389,000
$ 171,000
Net income
![Balance sheets
Dec. 31, Year 2
Dec. 31, Year 1
Assets
Cash
Accounts receivable
Supplies
Prepaid insurance
Prepaid rent
Inventory
280,000
268,000
180,000
200,000
20,000
40,000
30,000
22,000
60,000
24,000
300,000
870,000
270,000
824,000
480,000
Total current assets
Equipment
Accumulated depreciation
Land
480,000
(100,000)
80,000
(80,000)
80,000
Other non-current assets
Total assets
100,000
1,430,000
110,000
1,414,000
Liabilities and Stockholders' Equity
Accounts payable
Wages payable
Interest payable
Utilities payable
140,000
32,000
16,000
170,000
48,000
18,000
56,000
62,000
250,000
160,000
Total current liabilities
292,000
Notes payable
160,000
Other non-current liabilities
40,000
450,000
600,000
380,000
66,000
518,000
600,000
296,000
Total liabilities
Contributed capital
Retained earnings
Total stockholders equity
Total liabilities + stockholders equity S
980,000
1,430,000
896,000
1,414,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed2c783-41ee-4156-82bc-325ce490e43b%2F66cf14a7-33d1-40f8-a3bd-eac9b67bad89%2Ffq8q75_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Balance sheets
Dec. 31, Year 2
Dec. 31, Year 1
Assets
Cash
Accounts receivable
Supplies
Prepaid insurance
Prepaid rent
Inventory
280,000
268,000
180,000
200,000
20,000
40,000
30,000
22,000
60,000
24,000
300,000
870,000
270,000
824,000
480,000
Total current assets
Equipment
Accumulated depreciation
Land
480,000
(100,000)
80,000
(80,000)
80,000
Other non-current assets
Total assets
100,000
1,430,000
110,000
1,414,000
Liabilities and Stockholders' Equity
Accounts payable
Wages payable
Interest payable
Utilities payable
140,000
32,000
16,000
170,000
48,000
18,000
56,000
62,000
250,000
160,000
Total current liabilities
292,000
Notes payable
160,000
Other non-current liabilities
40,000
450,000
600,000
380,000
66,000
518,000
600,000
296,000
Total liabilities
Contributed capital
Retained earnings
Total stockholders equity
Total liabilities + stockholders equity S
980,000
1,430,000
896,000
1,414,000
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