Multiple-Step Income StatementOn March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:Accumulated Depreciation-BuildingMerchandise Inventory$719,300$1,007,800Administrative ExpensesNotes Payable260,350516,750BuildingOffice Supplies2,520,75019,700Cash174,800Salaries Payable8,000Cost of Merchandise SoldSales3,848,8006,655,550Interest Expense9,800Selling Expenses748,800Store SuppliesKathy Melman, Capital1,503,10085,800Kathy Melman, Drawing173,450a. Prepare a multiple-step income statement for the year ended March 31, 2019Racine Furnishings CompanyIncome StatementFor the Year Ended March 31, 2019Gross profitExpenses:Total expensesOther expense:b. What is a major advantage of the multiple-step income statement over the single-step income statement?

In the above statement, net income that is $1,551,000 is ascertained by deducting the sum of total…

Answered: Multiple-Step Income Statement On March…

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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From the following information prepare the Manufacturing, Profit or Loss and other comprehensive income statement accounts for the year ending 31 December 2019 and the statement of financial position as at 31 December 2019 for the firm of PigMen Enterprise.Purchase of raw materials 64,500.00 - Fuel and light 5,250.00 - Administration salaries 4,250.00 - Factory wages 14,750.00 - Carriage outwards 1,000.00 - Rent and rates 5,250.00 - Sales - 120,500.00 Returns inward 1,750.00 - General office expenses 2,250.00 - Repairs to plant and machinery 2,250.00 - Stock at 1 January 2019 - - Raw materials 5,250.00 - Work in progress 3,500.00 - Finished goods 5,750.00 - Sundry creditors - 9,250.00 Capital account - 114,250.00 Freehold premises 102,500.00 - Plant and machinery 20,000.00 - Debtors 5,000.00 - Provision for depreciation on plant and- - Machinery at 1 January 2019- 2,000.00 Cash in hand 2,750.00 - 246,000.00 246,000.00 Make provision for the following:(a) Stock in hand at 31 December…
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash $120,200 Gerri Faber, Drawing $72,000 Accounts Receivable 326,200 Sales 4,344,900 Merchandise Inventory 365,300 Cost of Merchandise Sold 2,546,100 Estimated Returns Inventory 14,450 Sales Salaries Expense 716,000 Office Supplies 11,300 Advertising Expense 196,900 Prepaid Insurance 8,800 Depreciation Expense—Store Equipment 38,400 Office Equipment 264,500 Miscellaneous Selling Expense 16,800 Accumulated Depreciation—Office Equipment 179,700 Office Salaries Expense 390,900 Store Equipment 825,600 Rent Expense 57,700 Accumulated Depreciation—Store Equipment 264,500 Insurance Expense 17,900 Accounts Payable 183,000 Depreciation Expense—Office Equipment 28,900 Customer Refunds Payable 28,900 Office Supplies Expense 10,600 Salaries Payable…
- = ABC Company's selected accounts as of November 30, 2022, follow: Selling expenses Furniture Sales returns and allowances Salary payable Common stock Sales revenue Accounts payable $ $ $ $ $ 1. 2. 18,900 Inventory 36,900 Cash 2,600 Note payable $ 1,100 Accumulated depreciatio $ $ 27,800 Cost of goods sold 114,300 Sales discounts $ $ $ $ 13,600 General expenses $ $ 42,000 36,200 21,800 22,800 54,000 1,800 9,000 Requirements Prepare the multi-step income statement, statement of retained earnings, and balance sheet for its first year of operations. Prepare closing entries for the first year of operations.
Current Attempt in Progress The trial balance of Crane Company at the end of its fiscal year, August 31, 2022, includes these accounts: Inventory $35,000; Purchases $154,900; Sales Revenue $191,000; Freight-In $9,200; Sales Returns and Allowances $4,400; Freight-Out $1,900; and Purchases Returns and Allowances $6,900. The ending inventory is $28,000. Prepare a cost of goods sold section for the year ending August 31.
Prepare an income statement and a statement of financial position in accordance with current cost accounting. Problern 23-12 (IAA) Legaspi Company was formed on January 1, 2020. The entity venorted the following financial statements pertaining to the first year of operations: Sales Cost of goods sold: Inventory- January 1 Purchases 5,000,000 1,000,000 3,100,000 Goods available for sale Inventory -December 31 4,100,000 ( 900,000) 3,200,000 Gross income Operating expenses: Expenses Depreciation 1,800,000 700,000 100,000 800,000 Income before income tax Less: Income tax 1,000,000 350,000 Net income 650,000 Assets Сash Accounts receivable Inventory Land Equipment (10-year life) Accumulated depreciation 500,000 600,000 900,000 800,000 1,000,000 ( 100,000) Total assets 3,700,000 Liabilities and Shareholders' Equity Accounts payable Notes payable Income tax payable Share capital Retained earnings: Net income Dividėnds 500,000 400,000 350,000 2,000,000 650,000 ( 200,000) 450,000 Total…
Portions of the financial statements for Peach Computer are provided below. Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $106,000 45,400 79,000 3,400 $1,090,000 600,000 54,000 44,000 49,000 5,400 2023 $87,000 51,000 57,000 5,800 39,000 12,000 $1,900,000 1,788,000 $112,000 Increase (I) or Decrease (D) $19,000 (I) 5,600 (D) 22,000 (I) 2,400 (D) 10,000 (I) 6,600 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Sales $ 562,795 2019 $ 299,200 338,803 Cost of goods sold Gross profit 191,488 223,992 107,712 Selling expenses 79,917 39,494 Administrative expenses 50,652 24,834 Total expenses 130,569 64,328 Income before taxes 93,423 43,384 Income tax expense 17,377 8,807 Net income $ 76,046 $ 34,577 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 Assets Current assets $ 38,127 $ 56,965 0 Long-term investments 700 97,740 Plant assets, net Total assets 107,436 $164,401 $ 136,567 Liabilities and Equity Current liabilities $ 20,348 Common stock 68,000 $ 24,003 68,000 8,500 63,898 Other paid-in capital 8,500 Retained earnings 39,719 Total liabilities and equity $164,401 $ 136,567 2020 $431,147 273,778 157,369 59,498 37,941 97,439 59,930 12,286 $ 47,644 2019 $ 50,967 4,550 57,629 $ 113,146 $ 19,801 50,000 5,556 37,789 $113,146 4
Financial statements for Asklew Industries for 2021 are shown below (in thousands) 2021 Income Statement Net sales $ 8,900 Cost of goods sold (6,225) Gross profit 2,675 Operating expenses (2,025) Interest expense (170) Income tax expense (192) Net Income $ 288 Comparative Balance Sheets Dec. 31…
Presented below are selected accounts of Flint Company at December 31, 2020. Inventory (finished goods) $ 53,500 Cost of Goods Sold $2,192,400 Unearned Service Revenue 95,200 Notes Receivable 41,000 Equipment 257,100 Accounts Receivable 161,020 Inventory (work in process) 36,000 Inventory (raw materials) 182,280 Cash 43,800 Supplies Expense 65,490 Debt Investments (trading) 39,500 Allowance for Doubtful Accounts 11,290 Customer Advances 53,200 Licenses 16,890 Restricted Cash for Plant Expansion 58,300 Additional Paid-in Capital 88,040 Treasury Stock 22,320 The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using LIFO. 2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $47,568. 3. The short-term investments have a fair value of $29,730. 4. The notes receivable are due April 30, 2022, with…
ces QS 12-13 (Algo) Computing cash from asset sales LO P3 CRUZ, INCORPORATED Comparative Balance Sheets 2021 At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Hages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold. Gross profit $ 64,300 27,600 57,700 3,600 Beginning balance 153,200 72,600 (11,200) $ 214,600 $ 10,100 6,000 1,000 Furniture 17,100 20,600 37,700 CRUS, INCORPORATED Incone Statement For Year Ended December 31, 2021 154,700 22,200 $ 214,600 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Het income 2020 $ 16,100 34,100 64,000 2,900 117,100 82,200 (6,200) $ 193,100 $ 14,200 3,300 1,800 19,300 47,700 67,000 123,700 2,400 $…
Prepare an income statement for Hansen Realty for the year ended December 31, 2023. Beginning inventory was $1,244. Ending inventory was $1,596. Note: Input all amounts as positive values. Sales $ 34,500 Sales returns and allowances 1,088 Sales discount 1,148 Purchases 10,312 Purchase discounts 536 Depreciation expense 111 Salary expense 5,000 Insurance expense 2,400 Utilities expense 206 Plumbing expense 246 Rent expense 176
Coney Island Inc. had the following operating transactions during January 2020, its first month of operations. Date Transaction 1/1 Purchased 2 units of inventory costing $4 each on credit 1/3 Purchased 3 units of inventory costing $5 each on credit 1/10 Purchased 4 units of inventory costing $6 each on credit 1/21 Paid for the January 1 purchase 1/23 Paid for the January 3 purchase 1/30 Sold 7 units of inventory at $10 each on credit 1/30 Matched the inventory cost to January 30 on a FIFO basis 1/31 Estimated that 10% of credit sales will not be realized in cash Record the above transactions in Coney Island’s journal Present Coney’s income statement through gross profit for January 2020

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