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entory Avenger Company's balance sheet at December 31, 2021. is presented below. Avenger LLC During Jhnuary 2022. the following transactions occurred. (Avenger Company uses the perpetual inventory system.) Balance Sheet Avenger paid $ 220 interest on the note payable on January 1, 2022. The note is due December 31, 2023. Avenger purchased $ 229.768 of inventory on account. Avenger sold for $ 387.200 cash, inventory which cost $ 233.200. Avenger also collected $ 25.168 in Isales taxes Avenger paid $ 202400 in accounts payable. |Avenger paid $ 14,960 in sales taxes to the state. Paid other operating expenses of $ 26,400. On January 31, 2022, the payroll for the month consists of salaries and wages of $ 56.000. All salaries and wages are subject to 7.65% FICA taxes. A total of $ 7,840 federal income taxes are withheld. The salaries and wages are paid on February 1. 31-Dec-21 $ 26,400 Accounts Payable $ 12.100 2 3 Cash Inventory 27,060 Interest Payable 220 Prepaid Insurance Equipment 5,280 33,440 $92.180 Notes Payable Owner's Capital 44,000 4 35,860 $92.180 61 Adjustment data: 8. 9. |Interest expense of $ 220 has been incurred in January on the notes payable. The insurance for the year 2022 was prepaid on December 31, 2021. 10 The equipment was acquired on December 31. 2021. and will be depreciated on a straight-line basis over 5 years with a $ 1,760 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax. 11 Journal Entries No. Account Titles and Explanation 1interest Payable Avengers LLC Income Statement Adjusted Trial Balance |Debit Cash $194,788.00 S 23.628.00 5 440 00 S 33,440 00 Credit Inventory Prepaid insurance Equipment Accounts Payable 220 January 31, 2022 Cash 220 inventory Accounts Payable alCash 22976 8 I 229768 Sales Revenue 387200 $ 39.44 00 s 44.000 00 S7.200 00 S 10.208 00 IS R568.00 4123 4 Notes Payable Cost of Goods Sold -233200 Sales Tax Payable Sales Revenue Ito record sales revenue Cost of Goods Seld Inventory 4Accounts Payable 2516 387200 Sales Revenue Sales taes Payable FICA Taxes Payable Federal incone Tases Payable State unemployment taes Payable Salaries and wages Payable Owners Capital Federal unemgloyment tases Payable Interest payable Other Operating Expense Salaries andeages Insurance Expense Cost of Goods Sold Accumulated Depreciation Expense Depreciation Expense Interest Expense Payoll Tae spense Total Gross Profit / (Loss) 154000 233200 Operating Expenses $7.84000 S 302400 $ 41,876 00 $35,860 00 336 00 S 220 00 233200 202400 Insurance Expense 440 Cash Sales Taxes Payable 202400 Раyroll Tax Expеnse 7644 140 Cash sOther Operating Expenses 14940 Other Operating Expenses 26400 26400 $ 26.400 00 S 56.000 00 440 00 $233 200 00 Salaries and Wages Expense Cash 26400 56000 56000 Salaries and Wages FICA Taves Pavable Depreciation Expense Total Operating Expenses 4284 528 7840 $$28.00 Federal income Tases Payable Salaries and Wages Pavable interest txpense Interest Payable linsurance Expense 91012 S28.00 Is 220 00 IS 7,644 00 43876 220 220 Income from Operations 62988 440 581128 581.128 Other Expenses and Losses Prepaid Insurance 10 Depreciation Expense Accumulated Depreciation Expense 1Payroll Tae Expense State Unemployment Taes Payable Ofederal Unemployment Tases Payable FICA es payable 440 520 Interest Expense 220 S28 7644 3024 Net income / (Loss) 62768 4284

entory Avenger Company's balance sheet at December 31, 2021. is presented below. Avenger LLC During Jhnuary 2022. the following transactions occurred. (Avenger Company uses the perpetual inventory system.) Balance Sheet Avenger paid $ 220 interest on the note payable on January 1, 2022. The note is due December 31, 2023. Avenger purchased $ 229.768 of inventory on account. Avenger sold for $ 387.200 cash, inventory which cost $ 233.200. Avenger also collected $ 25.168 in Isales taxes Avenger paid $ 202400 in accounts payable. |Avenger paid $ 14,960 in sales taxes to the state. Paid other operating expenses of $ 26,400. On January 31, 2022, the payroll for the month consists of salaries and wages of $ 56.000. All salaries and wages are subject to 7.65% FICA taxes. A total of $ 7,840 federal income taxes are withheld. The salaries and wages are paid on February 1. 31-Dec-21 $ 26,400 Accounts Payable $ 12.100 2 3 Cash Inventory 27,060 Interest Payable 220 Prepaid Insurance Equipment 5,280 33,440 $92.180 Notes Payable Owner's Capital 44,000 4 35,860 $92.180 61 Adjustment data: 8. 9. |Interest expense of $ 220 has been incurred in January on the notes payable. The insurance for the year 2022 was prepaid on December 31, 2021. 10 The equipment was acquired on December 31. 2021. and will be depreciated on a straight-line basis over 5 years with a $ 1,760 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax. 11 Journal Entries No. Account Titles and Explanation 1interest Payable Avengers LLC Income Statement Adjusted Trial Balance |Debit Cash $194,788.00 S 23.628.00 5 440 00 S 33,440 00 Credit Inventory Prepaid insurance Equipment Accounts Payable 220 January 31, 2022 Cash 220 inventory Accounts Payable alCash 22976 8 I 229768 Sales Revenue 387200 $ 39.44 00 s 44.000 00 S7.200 00 S 10.208 00 IS R568.00 4123 4 Notes Payable Cost of Goods Sold -233200 Sales Tax Payable Sales Revenue Ito record sales revenue Cost of Goods Seld Inventory 4Accounts Payable 2516 387200 Sales Revenue Sales taes Payable FICA Taxes Payable Federal incone Tases Payable State unemployment taes Payable Salaries and wages Payable Owners Capital Federal unemgloyment tases Payable Interest payable Other Operating Expense Salaries andeages Insurance Expense Cost of Goods Sold Accumulated Depreciation Expense Depreciation Expense Interest Expense Payoll Tae spense Total Gross Profit / (Loss) 154000 233200 Operating Expenses $7.84000 S 302400 $ 41,876 00 $35,860 00 336 00 S 220 00 233200 202400 Insurance Expense 440 Cash Sales Taxes Payable 202400 Раyroll Tax Expеnse 7644 140 Cash sOther Operating Expenses 14940 Other Operating Expenses 26400 26400 $ 26.400 00 S 56.000 00 440 00 $233 200 00 Salaries and Wages Expense Cash 26400 56000 56000 Salaries and Wages FICA Taves Pavable Depreciation Expense Total Operating Expenses 4284 528 7840 $$28.00 Federal income Tases Payable Salaries and Wages Pavable interest txpense Interest Payable linsurance Expense 91012 S28.00 Is 220 00 IS 7,644 00 43876 220 220 Income from Operations 62988 440 581128 581.128 Other Expenses and Losses Prepaid Insurance 10 Depreciation Expense Accumulated Depreciation Expense 1Payroll Tae Expense State Unemployment Taes Payable Ofederal Unemployment Tases Payable FICA es payable 440 520 Interest Expense 220 S28 7644 3024 Net income / (Loss) 62768 4284

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Every example in my book shows Prepaid and Inventory as Current Assets.  Does the order matter?  In the Liabilites and Owner's Equity section the one liabilityis throwing off my Total Current Liabilities and the Total Liabilities number.  I am completely at a loss for the Owner's Equity - where to even get that from.  Can you help? 

Avenger Company's balance sheet at December 31, 2021, is presented below. Avenger LLC During Jhnuary 2022, the following transactions occurred. (Avenger Company uses the perpetual inventory system.) Balance Sheet 1 31-Dec-21 Avenger paid $ 220 interest on the note payable on January 1, 2022. The note is due December 31, 2023. $ 26,400 $ 12,100 Avenger purchased $ 229,768 of inventory on account. Avenger sold for $ 387,200 cash, inventory which cost $ 233,200. Avenger also collected $ 25,168 in sales taxes. Avenger paid $ 202.400 in accounts payable. Avenger paid $ 14.960 in sales taxes to the state. Paid other operating expenses of $ 26.400. On January 31, 2022, the payroll for the month consists of salaries and wages of $ 56,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $ 7,840 federal income taxes are withheld. The salaries and wages are paid on February 1. Cash Accounts Payable 2 3 Inventory Prepaid Insurance Equipment 27,060 Interest Payable 220 Notes Payable Owner's Capital 5,280 44,000 4 33,440 $ 92,180 35.860 $92,180 6 7 Adjustment data: Interest expense of $ 220 has been incurred in January on the notes payable. The insurance for the year 2022 was prepaid on December 31, 2021. 10 The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $ 1,760 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax 11 Avengers LLC Journal Entries No. Account Titles and Explanation 1 Interest Payable Adjusted Trial Balance Debit Credit 220 $194,788.00 $ 23,628.00 Cash Income Statement Inventory January 31, 2022 220 Prepaid insurance Equipment S 4.840.00 $ 33,440.00 Cash 2 Inventory 229768 Sales Revenue 387200 229768 S 39,468.00 5 44,000.00 $ 387,200.00 S 10,208.00 $ 8,568.00 $ 7,840.00 $ 3.024.00 Accounts Payable Accounts Payable Cost of Goods Sold -233200 3 Cash Sales Tax Payable 412368 Notes Payable 25168 Sales Revenue Sales taxes Payable FICA Taxes Payable Federal income Taxes Payable State unemployment taxes Payable Sales Revenue 387200 Gross Profit / (Loss) 154000 (To record sales revenue.) Cost of Goods Sold Inventory 4 Accounts Payable Cash slsales Taxes Payable Cash 6lother Operating Expenses 233200 Operating Expenses 233200 Insurance Expense 440 $ 43,876.00 S 35,860.00 $ 336.00 202400 Salaries and wages Payable Owners Capital Federal unemployment taxes Payable 202400 Payroll Tax Expense 7644 14960 14960 Interest payable 220.00 other Operating Expenses 26400 26400 Other Operating Expense S 26,400.00 Cash 7Salaries and Wages FICA Taxes Payable Federal Income Taxes Payable 26400 Salaries and eages $ 56,000.00 Salaries and Wages Expense 56000 56000 l Insurance Expense 440.00 $233,200.00 :Depreciation Expense 528 4284 Cost of Goods Sold 7840 43876 Accumulated Depreciation Expense S28.00 Salaries and Wages Payable Depreciation Expense S 528.00 Total Operating Expenses 91012 8 Interest Expense 220 Interest Expense 220.00 Interest Payable Payroll Taxe Expense $ 7,644.00 Income from Operations 62988 220 9insurance Expense Prepaid Insurance 10 Depreciation Expense 440 Total 581.128 581,128 Other Expenses and Losses 440 528 Interest Expense 220 Accumulated Depreciation Expense 528 11 Payroll Taxe Expense 7644 Net income / (Loss) State Unemployment Taxes Payable Federal Unemployment Taxes Payable FICA taxes payable 3024 62768 336 4284
Transcribed Image Text:Avenger Company's balance sheet at December 31, 2021, is presented below. Avenger LLC During Jhnuary 2022, the following transactions occurred. (Avenger Company uses the perpetual inventory system.) Balance Sheet 1 31-Dec-21 Avenger paid $ 220 interest on the note payable on January 1, 2022. The note is due December 31, 2023. $ 26,400 $ 12,100 Avenger purchased $ 229,768 of inventory on account. Avenger sold for $ 387,200 cash, inventory which cost $ 233,200. Avenger also collected $ 25,168 in sales taxes. Avenger paid $ 202.400 in accounts payable. Avenger paid $ 14.960 in sales taxes to the state. Paid other operating expenses of $ 26.400. On January 31, 2022, the payroll for the month consists of salaries and wages of $ 56,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $ 7,840 federal income taxes are withheld. The salaries and wages are paid on February 1. Cash Accounts Payable 2 3 Inventory Prepaid Insurance Equipment 27,060 Interest Payable 220 Notes Payable Owner's Capital 5,280 44,000 4 33,440 $ 92,180 35.860 $92,180 6 7 Adjustment data: Interest expense of $ 220 has been incurred in January on the notes payable. The insurance for the year 2022 was prepaid on December 31, 2021. 10 The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $ 1,760 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax 11 Avengers LLC Journal Entries No. Account Titles and Explanation 1 Interest Payable Adjusted Trial Balance Debit Credit 220 $194,788.00 $ 23,628.00 Cash Income Statement Inventory January 31, 2022 220 Prepaid insurance Equipment S 4.840.00 $ 33,440.00 Cash 2 Inventory 229768 Sales Revenue 387200 229768 S 39,468.00 5 44,000.00 $ 387,200.00 S 10,208.00 $ 8,568.00 $ 7,840.00 $ 3.024.00 Accounts Payable Accounts Payable Cost of Goods Sold -233200 3 Cash Sales Tax Payable 412368 Notes Payable 25168 Sales Revenue Sales taxes Payable FICA Taxes Payable Federal income Taxes Payable State unemployment taxes Payable Sales Revenue 387200 Gross Profit / (Loss) 154000 (To record sales revenue.) Cost of Goods Sold Inventory 4 Accounts Payable Cash slsales Taxes Payable Cash 6lother Operating Expenses 233200 Operating Expenses 233200 Insurance Expense 440 $ 43,876.00 S 35,860.00 $ 336.00 202400 Salaries and wages Payable Owners Capital Federal unemployment taxes Payable 202400 Payroll Tax Expense 7644 14960 14960 Interest payable 220.00 other Operating Expenses 26400 26400 Other Operating Expense S 26,400.00 Cash 7Salaries and Wages FICA Taxes Payable Federal Income Taxes Payable 26400 Salaries and eages $ 56,000.00 Salaries and Wages Expense 56000 56000 l Insurance Expense 440.00 $233,200.00 :Depreciation Expense 528 4284 Cost of Goods Sold 7840 43876 Accumulated Depreciation Expense S28.00 Salaries and Wages Payable Depreciation Expense S 528.00 Total Operating Expenses 91012 8 Interest Expense 220 Interest Expense 220.00 Interest Payable Payroll Taxe Expense $ 7,644.00 Income from Operations 62988 220 9insurance Expense Prepaid Insurance 10 Depreciation Expense 440 Total 581.128 581,128 Other Expenses and Losses 440 528 Interest Expense 220 Accumulated Depreciation Expense 528 11 Payroll Taxe Expense 7644 Net income / (Loss) State Unemployment Taxes Payable Federal Unemployment Taxes Payable FICA taxes payable 3024 62768 336 4284
Avengers LLC Balance Sheet 31-Jan-22 Assets Current Assets Cash 194,788.00 Total Current Assets Property, Plant, and Equipment 194,788.00 Equipment 33440 Less Accum. Depr.-Equipment -528 Total Property,Plant, and Equipment 32912 Total Assets $4 227,700.00 Liabilities and Owner's Equity Current Liabilities Accounts Payable 39468 Interest Payable 220 Sales Taxes Payable 10208 FICA Taxes Payable 8568 Federal Income Taxes Payable 7840 Salaries and Wages Payable 43876 Federal Unemployment Taxes Payable 336 Total Current Liabilities 110516 Long Term Liabilities Notes Payable -44000 Total Liabilities 66516 Owner's Equity Total Liabilities and Owner's Equity 66516
Transcribed Image Text:Avengers LLC Balance Sheet 31-Jan-22 Assets Current Assets Cash 194,788.00 Total Current Assets Property, Plant, and Equipment 194,788.00 Equipment 33440 Less Accum. Depr.-Equipment -528 Total Property,Plant, and Equipment 32912 Total Assets $4 227,700.00 Liabilities and Owner's Equity Current Liabilities Accounts Payable 39468 Interest Payable 220 Sales Taxes Payable 10208 FICA Taxes Payable 8568 Federal Income Taxes Payable 7840 Salaries and Wages Payable 43876 Federal Unemployment Taxes Payable 336 Total Current Liabilities 110516 Long Term Liabilities Notes Payable -44000 Total Liabilities 66516 Owner's Equity Total Liabilities and Owner's Equity 66516
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