Q1) From the information given below create: a multi-step income statement, basic retained earnings statement and a classified balance sheet for:
The Crows Nest
For the year ended December 31st
Extra Data
Accounts Receivable Balance--Jan 1 was $32,400
Merchandise Inventory Balance --Jan 1 was $64,800
Accounts Payable Balance--Jan 1 was $24,777
Monthly Mortgage Payments are $550
Retained Earnings Balance--Jan 1 was $43,933
The stock had a par value of $10; 10,000 shares are authorized
Current Market Price of Stock is $34.50
Additionally to three statements, find out two ratios from each of the ratio categories.
Adjusted Trial Balance
Title:
Credit |
Debit |
| (Acc. #)133 Acc. Depr-Building |
$8,640 |
| 135 Acc. Depr- Delivery Equipt |
$9,450 |
| 137 Acc. Depr. Office Equipt |
$5,000 |
| 212 Accounts Payable |
$25,683 |
| 114 Accounts Receivable |
$35,300 |
| 614 Advertising Expense |
$10,000 |
| 132 Building |
$20,650 |
| 111 Cash |
$10,360 |
| 311 Common Stock |
$50,000 |
| 134 Delivery Equipt. |
$18,400 |
| 613 Delivery Expense |
$5,700 |
| 617 Depr. Expense Building |
$2,600 |
| 618 Depr. Expense- Delivery Equipt |
$5,200 |
| 624 Depr. Expense- Office Equipt |
$2,200 |
| 313 Dividends |
$ 20,000 |
| 512 Freight-In |
$8,236 |
| 315 Income Summary |
$4,400 |
| 214 Income Tax Payable |
$3,381 |
| 619 Income Taxes |
$3,381 |
| 622 Insurance Expense- General |
$4,200 |
| 615-Insurance Expense- Selling |
$1,600 |
| 811-Interest Expense |
$2,631 |
| 711- Interest Income |
$1,400 |
| 121-Land for future Use |
$5,000 |
| 131- Land (currently in use) |
$4,500 |
| 115-Merchandise Inventory |
$60,400 |
| 221-Mortgage Payable |
$17,800 |
| 211 Notes Payable |
$15,000 |
| 113 Notes Receivable |
$8,000 |
| 136 Office Equipt |
$8,600 |
| 623 Office Salaries Expense |
$26,900 |
| 118 Office Supplies |
$636 |
| 625 Office Supplies Expense |
$1,204 |
| 312 Paid In -Excess of Par |
$6,619 |
| 116 Prepaid Insurance |
$ 6,600 |
| 511 Purchases |
$168,624 |
| 512 Purchases Discounts |
$1,400 |
| 513 Purchases Returns |
$600 |
| 612 Rent Expense |
$5,600 |
| 314 Retained Earnings |
$43,933 |
| 213 Salaries Payable |
$2,000 |
| 411 Sales |
$297,156 |
| 412 Sales Discounts |
$3,200 |
| 413 Sales Returns |
$6,300 |
| 611 Sales Salary Expense |
$22,500 |
| 112 Short Term Investment |
$2,000 |
| 117 Store Supplies |
$1,060 |
| 616 Store Supplies Expense |
$1,540 |
| 141 Trademarks |
$500 |
| |
|
| $488,062 |
$488,062 |