Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended. Accounta receivable Depreciation expenae $32,300 10,600 24,300 85,500 58,400 11,900 69,000 5,600 21,500 26,500 3,300 10,000 15,341 43,000 40,000 13,400 29,800 153,000 Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expenae Comnon stock Incone tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales Required: a. Calculate the total current assets at December 31, 2019. b. Calculate the total liabilities and stockholders' equity at December 31, 2019. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all
balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities
that occurred during the year then ended.
$ 32,300
10,600
24,300
85,500
Accounts receivable
Depreciation expenae
Land
Cost of goods sold
Retained earnings
58,400
11,900
69,000
5,600
21,500
26,500
3,300
10,000
15,341
43,000
40,000
13,400
29,800
153,000
Cash
Equipment
Supplies
Accounts payable
Service revenue
Interest expenae
Common stock
Income tax expense
Accumulated depreciation
Long-term debt
Supplies expense
Merchandiae inventory
Net sales
Required:
a. Calculate the total current assets at December 31, 2019.
b. Calculate the total liabilities and stockholders' equity at December 31, 2019.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019.
d. Calculate the net income (or loss) for the year ended December 31, 2019.
e. What was the average income tax rate for Pope's Garage for 2019?
f. IF S18,500 of dividends had been deciared and paid during the year, what was the January 1, 2019, balance of retained
earnings?
Transcribed Image Text:Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2019. Assume that all balance sheet items reflect account balances at December 31, 2019, and that all income statement items reflect activities that occurred during the year then ended. $ 32,300 10,600 24,300 85,500 Accounts receivable Depreciation expenae Land Cost of goods sold Retained earnings 58,400 11,900 69,000 5,600 21,500 26,500 3,300 10,000 15,341 43,000 40,000 13,400 29,800 153,000 Cash Equipment Supplies Accounts payable Service revenue Interest expenae Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandiae inventory Net sales Required: a. Calculate the total current assets at December 31, 2019. b. Calculate the total liabilities and stockholders' equity at December 31, 2019. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2019. d. Calculate the net income (or loss) for the year ended December 31, 2019. e. What was the average income tax rate for Pope's Garage for 2019? f. IF S18,500 of dividends had been deciared and paid during the year, what was the January 1, 2019, balance of retained earnings?
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