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Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales $ 30,400 11,000 24,600 86,500 60,800 10,600 69,500 5,900 a. Total current assets b. Total liabilities and Stockholders' equity c. Operating income d. 22,500 23,300 e. Average income tax rate f. Retained earnings 4,000 6,000 Required: a. Calculate the total current assets at December 31, 2022. b. Calculate the total liabilities and stockholders' equity at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. 11,946 43,000 37,000 12,500 28,300 145,000 e. What was the average income tax rate for Pope's Garage for 2022? f. If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? %

Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales $ 30,400 11,000 24,600 86,500 60,800 10,600 69,500 5,900 a. Total current assets b. Total liabilities and Stockholders' equity c. Operating income d. 22,500 23,300 e. Average income tax rate f. Retained earnings 4,000 6,000 Required: a. Calculate the total current assets at December 31, 2022. b. Calculate the total liabilities and stockholders' equity at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. 11,946 43,000 37,000 12,500 28,300 145,000 e. What was the average income tax rate for Pope's Garage for 2022? f. If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? %

FINANCIAL ACCOUNTING
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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Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales Total current assets Total liabilities and Stockholders' equity $ 30,400 11,000 24,600 86,500 60,800 10,600 69,500 5,900 a. b. c. Operating income d. 22,500 23,300 Required: a. Calculate the total current assets at December 31, 2022. b. Calculate the total liabilities and stockholders' equity at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. Average income tax rate f. Retained earnings 4,000 6,000 e. What was the average income tax rate for Pope's Garage for 2022? f. If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? 11,946 43,000 37,000 12,500 28,300 145,000 %
Transcribed Image Text:Problem 2-19 (Algo) Understanding and analyzing financial statement relationships-sales/service organization LO 2-2, 2-3, 2-4 Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2022. Assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year then ended. Accounts receivable Depreciation expense Land Cost of goods sold Retained earnings Cash Equipment Supplies Accounts payable Service revenue Interest expense Common stock Income tax expense Accumulated depreciation Long-term debt Supplies expense Merchandise inventory Net sales Total current assets Total liabilities and Stockholders' equity $ 30,400 11,000 24,600 86,500 60,800 10,600 69,500 5,900 a. b. c. Operating income d. 22,500 23,300 Required: a. Calculate the total current assets at December 31, 2022. b. Calculate the total liabilities and stockholders' equity at December 31, 2022. c. Calculate the earnings from operations (operating income) for the year ended December 31, 2022. d. Calculate the net income (or loss) for the year ended December 31, 2022. e. Average income tax rate f. Retained earnings 4,000 6,000 e. What was the average income tax rate for Pope's Garage for 2022? f. If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2022, balance of retained earnings? 11,946 43,000 37,000 12,500 28,300 145,000 %
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