Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 44 Inventories $ 59 Less accumulated depreciation 129 Receivables 80 Total current assets Total current liabilities Long-term debt $ 395 Interest expense $ 34 Property, plant, and equipment 565 Total liabilities Net fixed assets Shareholders’ equity $ 126 Total assets Total liabilities and shareholders’ equity INCOME STATEMENT Net sales $ 790 Cost of goods sold 625 Selling, general, and administrative expenses 47 EBIT Debt due for repayment $ 34 Cash 24 Taxable income Federal plus other taxes $ 24 Depreciation 21 Net income Prepare the balance sheet and income statement by rearranging the above items.
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 44 Inventories $ 59 Less accumulated depreciation 129 Receivables 80 Total current assets Total current liabilities Long-term debt $ 395 Interest expense $ 34 Property, plant, and equipment 565 Total liabilities Net fixed assets Shareholders’ equity $ 126 Total assets Total liabilities and shareholders’ equity INCOME STATEMENT Net sales $ 790 Cost of goods sold 625 Selling, general, and administrative expenses 47 EBIT Debt due for repayment $ 34 Cash 24 Taxable income Federal plus other taxes $ 24 Depreciation 21 Net income Prepare the balance sheet and income statement by rearranging the above items.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Henry Josstick has just started his first accounting course and has prepared the following
BALANCE SHEET | |||
Payables | $ 44 | Inventories | $ 59 |
Less |
129 | Receivables | 80 |
Total current assets | Total current liabilities | ||
Long-term debt | $ 395 | Interest expense | $ 34 |
Property, plant, and equipment | 565 | Total liabilities | |
Net fixed assets | Shareholders’ equity | $ 126 | |
Total assets | Total liabilities and shareholders’ equity |
INCOME STATEMENT | |
Net sales | $ 790 |
---|---|
Cost of goods sold | 625 |
Selling, general, and administrative expenses | 47 |
EBIT | |
Debt due for repayment | $ 34 |
Cash | 24 |
Taxable income | |
Federal plus other taxes | $ 24 |
Depreciation | 21 |
Net income |
Prepare the balance sheet and income statement by rearranging the above items.
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![Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for
Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item
should go in the balance sheet or income statement and whether it is an asset or liability.
Payables
Less accumulated depreciation
Total current assets
Long-term debt
Property, plant, and equipment
Net fixed assets
Total assets
EBIT
Debt due for repayment
Cash
INCOME STATEMENT
Net sales
Cost of goods sold
Selling, general, and administrative expenses
Taxable income
Federal plus other taxes
Depreciation
Net income
--------------…………………………………
Cash
Cost of goods sold
Debt due for repayment
Depreciation
Net fixed assets
Total assets
Assets
BALANCE SHEET
$44 Inventories
129
Receivables
$395
565
$
$
Total current liabilities
Interest expense
Total liabilities
Shareholders' equity
Total liabilities and shareholders' equity
$ 790
625
47
Prepare the balance sheet and income statement by rearranging the above items.
Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.
$34
24
$24
21
BALANCE SHEET
Liabilities and Shareholders' Equity
$
Payables
Debt due for repayment
Total current liabilities
Long-term debt
129 Total liabilities
694 Shareholders' equity
857 Total liabilities and shareholders'equity
$
$
$ 34
$ 126
44
34
78
395
$59
80
473
126
599](https://content.bartleby.com/qna-images/question/641f50e5-1c02-43f0-878f-ddece55dd846/287dc661-635e-4d95-97b5-34ef92e8e05d/9ny7gzn_thumbnail.png)
Transcribed Image Text:Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for
Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item
should go in the balance sheet or income statement and whether it is an asset or liability.
Payables
Less accumulated depreciation
Total current assets
Long-term debt
Property, plant, and equipment
Net fixed assets
Total assets
EBIT
Debt due for repayment
Cash
INCOME STATEMENT
Net sales
Cost of goods sold
Selling, general, and administrative expenses
Taxable income
Federal plus other taxes
Depreciation
Net income
--------------…………………………………
Cash
Cost of goods sold
Debt due for repayment
Depreciation
Net fixed assets
Total assets
Assets
BALANCE SHEET
$44 Inventories
129
Receivables
$395
565
$
$
Total current liabilities
Interest expense
Total liabilities
Shareholders' equity
Total liabilities and shareholders' equity
$ 790
625
47
Prepare the balance sheet and income statement by rearranging the above items.
Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.
$34
24
$24
21
BALANCE SHEET
Liabilities and Shareholders' Equity
$
Payables
Debt due for repayment
Total current liabilities
Long-term debt
129 Total liabilities
694 Shareholders' equity
857 Total liabilities and shareholders'equity
$
$
$ 34
$ 126
44
34
78
395
$59
80
473
126
599
Solution
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