Preparing income statement and retained earnings statement and balance sheet and calculate certain ratios required by the image file details.
From the attached information prepare: a multi-step income statement, a basic retained earnings statement and a classified balance sheet for:
The Crows Nest
For the year ended December 31st
Additional 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
In addition to the three statements, compute two ratios from each of the ratio categories covered in Class/shown on the handout.
Adjusted Trial Balance
|
Title:
Credit
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Debit
|
|
(Acc. #)133 Acc. Depr-Building
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$8,640
|
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135 Acc. Depr- Delivery Equipt
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$9,450
|
|
137 Acc. Depr. Office Equipt
|
$5,000
|
|
212 Accounts Payable
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$25,683
|
|
114 Accounts Receivable
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$35,300
|
|
614 Advertising Expense
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$10,000
|
|
132 Building
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$20,650
|
|
111 Cash
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$10,360
|
|
311 Common Stock
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$50,000
|
|
134 Delivery Equipt.
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$18,400
|
|
613 Delivery Expense
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$5,700
|
|
617 Depr. Expense Building
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$2,600
|
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618 Depr. Expense- Delivery Equipt
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$5,200
|
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624 Depr. Expense- Office Equipt
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$2,200
|
|
313 Dividends
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$ 20,000
|
|
512 Freight-In
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$8,236
|
|
315 Income Summary
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$4,400
|
|
214 Income Tax Payable
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$3,381
|
|
619 Income Taxes
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$3,381
|
|
622 Insurance Expense- General
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$4,200
|
|
615-Insurance Expense- Selling
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$1,600
|
|
811-Interest Expense
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$2,631
|
|
711- Interest Income
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$1,400
|
|
121-Land for future Use
|
$5,000
|
|
131- Land (currently in use)
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$4,500
|
|
115-Merchandise Inventory
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$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
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$43,933
|
|
213 Salaries Payable
|
$2,000
|
|
411 Sales
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$297,156
|
|
412 Sales Discounts
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$3,200
|
|
413 Sales Returns
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$6,300
|
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611 Sales Salary Expense
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$22,500
|
|
112 Short Term Investment
|
$2,000
|
|
117 Store Supplies
|
$1,060
|
|
616 Store Supplies Expense
|
$1,540
|
|
141 Trademarks
|
$500
|
|
|
|
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$488,062
|
$488,062
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