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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. 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.

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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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.

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One of the answers in the balance sheet is incorrect. Please check the highlighted incorrect option. There is no such option in the drop down to be selected as "Less: Accumulated Depriciation" and 129 is incorrect as well.

 

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
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
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