HOW DO I PREPARE A MULTI. INCOME STATEMENT TABLE? Sandhill Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2020, the following accounts appeared in two of its trial balances. Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $25,900 $25,900 Notes payable $35,000 $35,000 Accounts Receivable 31,000 31,000 Owner’s Capital 85,100 85,100 Accumulated Depr.—Equipment 34,000 45,000 Owner’s Drawings 10,000 10,000 Cash 26,000 26,000 Prepaid Insurance 10,400 3,200 Cost of Goods Sold 504,500 504,500 Property Tax Expense 2,500 Freight-Out 6,000 6,000 Property Taxes Payable 2,500 Equipment 146,000 146,000 Rent Expense 15,000 15,000 Depreciation Expense 11,000 Salaries and Wages Expense 96,000 96,000 Insurance Expense 7,200 Sales Revenue 720,000 720,000 Interest Expense 6,100 6,100 Sales Commissions Expense 6,500 11,000 Interest Revenue 2,000 2,000 Sales Commissions Payable 4,500 Inventory 28,000 28,000 Sales Returns and Allowances 8,000 8,000 Utilities Expense 8,500 8,500
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
HOW DO I PREPARE A MULTI. INCOME STATEMENT TABLE?
Sandhill Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2020, the following accounts appeared in two of its
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Unadjusted
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Adjusted
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Unadjusted
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Adjusted
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| Accounts Payable | $25,900 | $25,900 | Notes payable | $35,000 | $35,000 | |||||
| 31,000 | 31,000 | Owner’s Capital | 85,100 | 85,100 | ||||||
| Accumulated Depr.—Equipment | 34,000 | 45,000 | Owner’s Drawings | 10,000 | 10,000 | |||||
| Cash | 26,000 | 26,000 | Prepaid Insurance | 10,400 | 3,200 | |||||
| Cost of Goods Sold | 504,500 | 504,500 | Property Tax Expense | 2,500 | ||||||
| Freight-Out | 6,000 | 6,000 | Property Taxes Payable | 2,500 | ||||||
| Equipment | 146,000 | 146,000 | Rent Expense | 15,000 | 15,000 | |||||
| 11,000 | Salaries and Wages Expense | 96,000 | 96,000 | |||||||
| Insurance Expense | 7,200 | Sales Revenue | 720,000 | 720,000 | ||||||
| Interest Expense | 6,100 | 6,100 | Sales Commissions Expense | 6,500 | 11,000 | |||||
| Interest Revenue | 2,000 | 2,000 | Sales Commissions Payable | 4,500 | ||||||
| Inventory | 28,000 | 28,000 | Sales Returns and Allowances | 8,000 | 8,000 | |||||
| Utilities Expense | 8,500 | 8,500 |
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