Kendra Tate Assignment
Problems instructions
The adjusted trial balance for Chiara Company as of December 31, 2015, follows.
|
|
Debit
|
Credit
|
|
Cash
|
85,400
|
|
|
Accounts receivable
|
52,500
|
|
|
Interest receivable
|
18,600
|
|
|
Notes receivable (due in 90 days)
|
171,000
|
|
|
Office supplies
|
15,500
|
|
|
Automobiles
|
168,000
|
|
|
Accumulated depreciation-Automobiles
|
|
75,000
|
|
Equipment
|
144,000
|
|
|
Accumulated depreciation-Equipment
|
|
20,000
|
|
Land
|
85,000
|
|
|
Accounts payable
|
|
93,000
|
|
Interest payable
|
|
45,000
|
|
Salaries payable
|
|
16,000
|
|
Unearned fees
|
|
40,000
|
|
Long-term notes payable
|
|
152,000
|
|
Common stock
|
|
53,160
|
|
Retained earnings
|
|
212,640
|
|
Dividends
|
45,000
|
|
|
Fees earned
|
|
474,000
|
|
Interest earned
|
|
38,000
|
|
Depreciation expense-Automobiles
|
26,000
|
|
|
Depreciation expense-Equipment
|
18,500
|
|
|
Salaries expense
|
185,000
|
|
|
Wages expense
|
42,000
|
|
|
Interest expense
|
33,200
|
|
|
Office supplies expense
|
35,400
|
|
|
Advertising expense
|
63,500
|
|
|
Repairs expense-Automobiles
|
30,200
|
|
|
Totals
|
1,218,800
|
1,218,800
|
Required:
1(a) Prepare the income statement for the year ended December 31, 2015.
1(b) Prepare the statement of owner's equity for the year ended December 31, 2015.
1(c) Prepare Chiara Company's balance sheet as of December 31, 2015.
2. Calculate the profit margin for year 2015.
Remember:
If your instructor makes any policy changes while you are in the middle of an attempt, the changes will only apply to later attempts.
If you take this assignment more than once, your previous answers will be displayed.
References
eBook & Resources
WorksheetLearning Objective: 03-A1 Compute profit margin and describe its use in analyzing company performance.
Difficulty: 3 HardLearning Objective: 03-P3 Prepare financial statements from an adjusted trial balance.
eBook: Compute profit margin and describe its use in analyzing company performance.eBook: Prepare financial statements from an adjusted trial balance.