Construct a proper Balance Sheet using the following accounts: Checking Inventory Accounts Receivable Land Buildings Accumulated Depreciation 45,000 8,000 10,000 35,000 60,000 (10,000) Accounts Payable Notes Payable Retained Earnings Contruct a proper Income Statement using the following accounts Sales Sales Returns and Allowances Utilities Expense Insurance Expense Salaries Expense Rent Expense Cost of Goods Sold Depreciation Expense 10,000 22,000 116,000 100,000 5,000 1,200 1,500 45,000 12,000 30,000 3,000
Construct a proper Balance Sheet using the following accounts: Checking Inventory Accounts Receivable Land Buildings Accumulated Depreciation 45,000 8,000 10,000 35,000 60,000 (10,000) Accounts Payable Notes Payable Retained Earnings Contruct a proper Income Statement using the following accounts Sales Sales Returns and Allowances Utilities Expense Insurance Expense Salaries Expense Rent Expense Cost of Goods Sold Depreciation Expense 10,000 22,000 116,000 100,000 5,000 1,200 1,500 45,000 12,000 30,000 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Construct a proper Balance Sheet using the following accounts:
Checking
45,000
Inventory
8,000
Accounts Receivable
10,000
Land
35,000
60,000
(10,000)
Buildings
Accumulated Depreciation
Accounts Payable
Notes Payable
Retained Earnings
Contruct a proper Income Statement using the following accounts
Sales
Sales Returns and Allowances
Utilities Expense
Insurance Expense
Salaries Expense
10,000
22,000
116,000
Rent Expense
Cost of Goods Sold
Depreciation Expense
100,000
5,000
1,200
1,500
45,000
12,000
30,000
3,000
Expert Solution
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Step 1
The income statement shows the profitability by reporting the revenues earned during the period and also the expenses incurred to earn it. The difference between revenues and cost is the profit or net income.
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