Income Statement, Statement of Owner's Equity and Balance Sheet   Instructions Amount Descriptions Income Statement Statement of Owner’s Equity Balance Sheet         Instructions     Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000.   Backlund Farm Supply End-of-Period Spreadsheet (Partial) December 31, 20-- 1 ACCOUNT TITLE ADJUSTED TRIAL BALANCE DEBIT ADJUSTED TRIAL BALANCE CREDIT 2 Cash 25,784.00   3 Accounts Receivable 10,296.00   4 Merchandise Inventory 71,280.00   5 Estimated Returns Inventory 1,320.00   6 Supplies 2,640.00   7 Prepaid Insurance 1,980.00   8 Land 99,000.00   9 Building 385,000.00   10 Accumulated Depreciation-Building   22,000.00 11 Store Equipment 132,000.00   12 Accumulated Depreciation-Store Equipment   3,960.00 13 Accounts Payable   10,516.00 14 Customer Refunds Payable   1,760.00 15 Wages Payable   1,320.00 16 Sales Tax Payable   3,784.00 17 Note Payable   17,600.00 18 J. Buckland, Capital   587,752.00 19 J. Buckland, Drawing 5,280.00   20 Income Summary 65,120.00 71,280.00 21   880.00 1,320.00 22 Sales   358,644.00 23 Sales Returns and Allowances 5,896.00   24 Purchases 178,904.00   25 Purchases Returns and Allowances   4,488.00 26 Purchases Discounts   3,520.00 27 Freight-In 1,760.00   28 Wages Expense 76,340.00   29 Advertising Expense 1,320.00   30 Supplies Expense 880.00   31 Phone Expense 3,010.00   32 Utilities Expense 3,150.00   33 Insurance Expense 1,760.00   34 Depreciation Expense-Building 11,000.00   35 Depreciation Expense-Store Equipment 1,980.00   36 Miscellaneous Expense 660.00   37 Interest Expense 704.00   38   $1,087,944.00 $1,087,944.00 39   353,364.00 439,252.00 40 Net Income $85,888.00         Required: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet.     Amount Descriptions     Amount Descriptions   additional investments   Cost of goods purchased   Cost of goods sold   current portion   Decrease in capital   Goods available for sale   Gross profit   Income from operations   Increase in capital   J. Backlund, capital   J. Backlund, capital, December 31, 20--   J. Backlund, capital, January 1, 20--   Merchandise inventory, December 31, 20--   Merchandise inventory, January 1, 20--   Net income   Net loss   Net purchases   Net sales   Total assets   Total current assets   Total current liabilities   Total investment   Total liabilities   Total liabilities and owner’s equity   Total operating expenses   withdrawals for the year       Income Statement     1. Prepare a multiple-step income statement. Income Statement Instructions   Backlund Farm Supply Income Statement For Year Ended December 31, 20-- 1 Revenue from sales:         2           3           4           5 Cost of goods sold:         6           7           8           9           10           11           12           13           14           15           16           17           18           19 Operating expenses:         20           21           22           23           24           25           26           27           28           29           30           31 Other expenses:         32           33                   Statement of Owner’s Equity     2. Prepare a statement of owner’s equity. Statement of Owner’s Equity Instructions   Backlund Farm Supply Statement of Owner’s Equity For Year Ended December 31, 20-- 1       2       3       4       5       6       7               Balance Sheet     3. Prepare a balance sheet. Additional Instructions   Backlund Farm Supply Balance Sheet December 31, 20-- 1 Assets       2 Current assets:       3         4         5         6         7         8         9         10 Property, plant, and equipment:       11         12         13         14         15         16         17 Liabilities       18 Current liabilities:       19         20         21         22         23         24         25 Long-term liabilities:       26         27         28         29 Owner’s equity       30         31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Income Statement, Statement of Owner's Equity and Balance Sheet
 
Instructions
Amount Descriptions
Income Statement
Statement of Owner’s Equity
Balance Sheet
 
 
 
 
Instructions
 
 
Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000.
 
Backlund Farm Supply
End-of-Period Spreadsheet (Partial)
December 31, 20--
1
ACCOUNT TITLE
ADJUSTED TRIAL BALANCE DEBIT
ADJUSTED TRIAL BALANCE CREDIT
2
Cash
25,784.00
 
3
Accounts Receivable
10,296.00
 
4
Merchandise Inventory
71,280.00
 
5
Estimated Returns Inventory
1,320.00
 
6
Supplies
2,640.00
 
7
Prepaid Insurance
1,980.00
 
8
Land
99,000.00
 
9
Building
385,000.00
 
10
Accumulated Depreciation-Building
 
22,000.00
11
Store Equipment
132,000.00
 
12
Accumulated Depreciation-Store Equipment
 
3,960.00
13
Accounts Payable
 
10,516.00
14
Customer Refunds Payable
 
1,760.00
15
Wages Payable
 
1,320.00
16
Sales Tax Payable
 
3,784.00
17
Note Payable
 
17,600.00
18
J. Buckland, Capital
 
587,752.00
19
J. Buckland, Drawing
5,280.00
 
20
Income Summary
65,120.00
71,280.00
21
 
880.00
1,320.00
22
Sales
 
358,644.00
23
Sales Returns and Allowances
5,896.00
 
24
Purchases
178,904.00
 
25
Purchases Returns and Allowances
 
4,488.00
26
Purchases Discounts
 
3,520.00
27
Freight-In
1,760.00
 
28
Wages Expense
76,340.00
 
29
Advertising Expense
1,320.00
 
30
Supplies Expense
880.00
 
31
Phone Expense
3,010.00
 
32
Utilities Expense
3,150.00
 
33
Insurance Expense
1,760.00
 
34
Depreciation Expense-Building
11,000.00
 
35
Depreciation Expense-Store Equipment
1,980.00
 
36
Miscellaneous Expense
660.00
 
37
Interest Expense
704.00
 
38
 
$1,087,944.00
$1,087,944.00
39
 
353,364.00
439,252.00
40
Net Income
$85,888.00
 
 
 
 
Required:
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner’s equity.
3. Prepare a balance sheet.
 
 
Amount Descriptions
 
 
Amount Descriptions  
additional investments  
Cost of goods purchased  
Cost of goods sold  
current portion  
Decrease in capital  
Goods available for sale  
Gross profit  
Income from operations  
Increase in capital  
J. Backlund, capital  
J. Backlund, capital, December 31, 20--  
J. Backlund, capital, January 1, 20--  
Merchandise inventory, December 31, 20--  
Merchandise inventory, January 1, 20--  
Net income  
Net loss  
Net purchases  
Net sales  
Total assets  
Total current assets  
Total current liabilities  
Total investment  
Total liabilities  
Total liabilities and owner’s equity  
Total operating expenses  
withdrawals for the year  
 
 
Income Statement
 
 
1. Prepare a multiple-step income statement.
Income Statement Instructions
 
Backlund Farm Supply
Income Statement
For Year Ended December 31, 20--
1
Revenue from sales:
 
 
 
 
2
 
 
 
 
 
3
 
 
 
 
 
4
 
 
 
 
 
5
Cost of goods sold:
 
 
 
 
6
 
 
 
 
 
7
 
 
 
 
 
8
 
 
 
 
 
9
 
 
 
 
 
10
 
 
 
 
 
11
 
 
 
 
 
12
 
 
 
 
 
13
 
 
 
 
 
14
 
 
 
 
 
15
 
 
 
 
 
16
 
 
 
 
 
17
 
 
 
 
 
18
 
 
 
 
 
19
Operating expenses:
 
 
 
 
20
 
 
 
 
 
21
 
 
 
 
 
22
 
 
 
 
 
23
 
 
 
 
 
24
 
 
 
 
 
25
 
 
 
 
 
26
 
 
 
 
 
27
 
 
 
 
 
28
 
 
 
 
 
29
 
 
 
 
 
30
 
 
 
 
 
31
Other expenses:
 
 
 
 
32
 
 
 
 
 
33
 
 
 
 
 
 
 
 
 
Statement of Owner’s Equity
 
 
2. Prepare a statement of owner’s equity.
Statement of Owner’s Equity Instructions
 
Backlund Farm Supply
Statement of Owner’s Equity
For Year Ended December 31, 20--
1
 
 
 
2
 
 
 
3
 
 
 
4
 
 
 
5
 
 
 
6
 
 
 
7
 
 
 
 
 
 
 
Balance Sheet
 
 
3. Prepare a balance sheet.
Additional Instructions
 
Backlund Farm Supply
Balance Sheet
December 31, 20--
1
Assets
 
 
 
2
Current assets:
 
 
 
3
 
 
 
 
4
 
 
 
 
5
 
 
 
 
6
 
 
 
 
7
 
 
 
 
8
 
 
 
 
9
 
 
 
 
10
Property, plant, and equipment:
 
 
 
11
 
 
 
 
12
 
 
 
 
13
 
 
 
 
14
 
 
 
 
15
 
 
 
 
16
 
 
 
 
17
Liabilities
 
 
 
18
Current liabilities:
 
 
 
19
 
 
 
 
20
 
 
 
 
21
 
 
 
 
22
 
 
 
 
23
 
 
 
 
24
 
 
 
 
25
Long-term liabilities:
 
 
 
26
 
 
 
 
27
 
 
 
 
28
 
 
 
 
29
Owner’s equity
 
 
 
30
 
 
 
 
31
 
 
 
 
 
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