Part A: Complete the Gross PPE and Accumulated Depreciation T-Accounts for 2022, including beginning and ending balances, and all changes throughout the year: Part B: Complete the following journal entries: Sales Revenue CGS Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income Declan's Designs Income Statement For the Year Ending 12/31/2022 $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Declan's Designs Balance Sheet ASSETS Current Assets 12/31/2021 12/31/2022 Cash and Cash Equivalents $90,000 $294,000 Accounts Receivable, Net 97,000 101,000 Merchandise Inventory 400,000 475,000 Total Current Assets 587,000 870,000 PPE, Net 62,000 70,000 Goodwill, Net 600,000 600,000 Total Assets $1,249,000 $1,540,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 26,000 17,000 Interest Payable 3,000 5,000 Dividends Payable Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities Shareholder's Equity Preferred Stock 20,000 10,000 49,000 32,000 500,000 500,000 0 200,000 549,000 732,000 0 0 Common Stock 8,000 10,000 Additional Paid in Capital 54,000 60,000 Retained Earnings 638,000 738,000 Total Shareholder's Equity 700,000 808,000 Total Liabilities & Shareholders' Equity $1,249,000 $1,540,000
Part A: Complete the Gross PPE and Accumulated Depreciation T-Accounts for 2022, including beginning and ending balances, and all changes throughout the year: Part B: Complete the following journal entries: Sales Revenue CGS Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income Declan's Designs Income Statement For the Year Ending 12/31/2022 $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Declan's Designs Balance Sheet ASSETS Current Assets 12/31/2021 12/31/2022 Cash and Cash Equivalents $90,000 $294,000 Accounts Receivable, Net 97,000 101,000 Merchandise Inventory 400,000 475,000 Total Current Assets 587,000 870,000 PPE, Net 62,000 70,000 Goodwill, Net 600,000 600,000 Total Assets $1,249,000 $1,540,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 26,000 17,000 Interest Payable 3,000 5,000 Dividends Payable Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities Shareholder's Equity Preferred Stock 20,000 10,000 49,000 32,000 500,000 500,000 0 200,000 549,000 732,000 0 0 Common Stock 8,000 10,000 Additional Paid in Capital 54,000 60,000 Retained Earnings 638,000 738,000 Total Shareholder's Equity 700,000 808,000 Total Liabilities & Shareholders' Equity $1,249,000 $1,540,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Part A: Complete the Gross PPE and Accumulated Depreciation T-Accounts for
2022, including beginning and ending balances, and all changes throughout the year:
Part B: Complete the following journal entries:
Sales Revenue
CGS
Gross Margin
SG&A
Operating Income
Interest Expense
Loss on Sale of PPE
Pre-Tax Income
Income Tax Expense
Net Income
Declan's Designs Income Statement
For the Year Ending
12/31/2022
$225,000
(16,000)
209,000
(22,000)
187,000
(12,000)
(5,000)
170,000
(7,000)
$163,000
Declan's Designs Balance Sheet
ASSETS
Current Assets
12/31/2021
12/31/2022
Cash and Cash Equivalents
$90,000
$294,000
Accounts Receivable, Net
97,000
101,000
Merchandise Inventory
400,000
475,000
Total Current Assets
587,000
870,000
PPE, Net
62,000
70,000
Goodwill, Net
600,000
600,000
Total Assets
$1,249,000
$1,540,000
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable
26,000
17,000
Interest Payable
3,000
5,000
Dividends Payable
Total Current Liabilities
Mortgage Payable
Long-Term Bank Loan
Total Liabilities
Shareholder's Equity
Preferred Stock
20,000
10,000
49,000
32,000
500,000
500,000
0
200,000
549,000
732,000
0
0
Common Stock
8,000
10,000
Additional Paid in Capital
54,000
60,000
Retained Earnings
638,000
738,000
Total Shareholder's Equity
700,000
808,000
Total Liabilities & Shareholders' Equity
$1,249,000
$1,540,000
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