Question #1:
Your assistant has prepared the following Adjusted Trial Balance data for Lepper Company on December 31, 2015. The accounts are arranged in alphabetical order.
Accounts payable $31,000 Land $69,600
Accounts receivable 62,200 Long-term Investment 12,600
Accumulated Depreciation-Bldg. 19,800 Mortgage payable (due 2025) 48,000
Depreciation expense 4,300 Note payable (short-term) 15,000
Building 72,000 Other expenses 13,000
Cash 24,000 Prepaid insurance 500
Common shares 86,500 Retained earnings 30,000
Cost of goods sold 120,000 Salaries & Wages Expense 60,000
Dividends 12,400 Salaries & wages payable 3,000
Dividends payable 4,000 Sales Revenue 240,000
Insurance expense 1,400 Selling expenses 29,400
Income tax expense 8,000 Misc. Service Fees Earned 33,100
Income tax payable 2,000 Supplies 800
Interest expense 1,700 Supplies expense 2,000
Interest payable 300 Unearned revenue 1,200
Inventory 20,000
Required:
a. Prepare a Multi-Step Income Statement for the year ended Dec 31, 2015.
b. Prepare a Classified Statement of Financial Position/Balance Sheet as at Dec 31, 2015.
Question# 2: The following alphabetical listing of accounts was taken from the general ledger of Buckler Inc. on September 30, 2015. Each account contains the balance normally attributable to that type of account (for example, Cash normally has a debit balance).
Accounts Payable $34,385
Accounts Receivable 36,480
Accumulated Depreciation - Equipment 12,000
Advertising Expense 4,100
Capital Stock (Common Shares) 50,000
Cash 26,345
Depreciation Expense - Equipment 2,500
Dividends 8,000
Equipment 49,500
Income Tax Expense 1,250
Income Tax Payable 1,550
Inventory, October 1, 2014 7,325
Inventory, September 30, 2015 9,840
Inventory Purchases 93,600
Prepaid Rent 4,000
Rent Expense 4,600
Retained Earnings 32,370
Sales 133.600
Sales Returns 1,895
Salaries Expense 22,900
Utilities Expense 2,100
Wages & Salaries Payable 690
Required:
(1) Calculate the Cost of Goods Sold for Buckler Inc. for the year ended September 30, 2015.
(2) Prepare a Multi-Step Income Statement for Buckler Inc. for the year ended Sept 30, 2015.
(3) Prepare a Classified Statement of Financial Position/Balance Sheet as at September 30, 2015.
Question# 3
The following accounts and balances are taken from the records of Beta Inc. relating to the year ending August 31, 2015:
|
Accounts payable
|
|
24,800
|
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Accounts receivable
|
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31,200
|
|
Accumulated depreciation - equipment
|
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24,000
|
|
Cash
|
|
5,000
|
|
Common shares
|
|
27,800
|
|
Cost of goods sold
|
|
116,800
|
|
Depreciation expense - equipment
|
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4,000
|
|
Dividends
|
|
6,000
|
|
Equipment
|
|
30,000
|
|
Income tax expense
|
|
4,250
|
|
Income tax payable
|
|
480
|
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Insurance expense
|
|
5,000
|
|
Interest expense
|
|
8,720
|
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Interest revenue
|
|
640
|
|
Inventory
|
|
63,960
|
|
Land
|
|
80,000
|
|
Loan payable, (due February 2016)
|
|
74,000
|
|
Marketing expense
|
|
18,800
|
|
Office supplies
|
|
920
|
|
Office supplies expense
|
|
3,040
|
|
Other expenses
|
|
1,000
|
|
Prepaid insurance
|
|
4,800
|
|
Sales Revenue
|
|
256,000
|
|
Rent expense
|
|
18,000
|
|
Retained earnings, (Sept 1, 2014)
|
|
18,370
|
|
Salaries expense
|
|
52,800
|
|
Salaries payable
|
|
2,800
|
|
Utilities expense
|
|
4,600
|
|
Unearned revenues
|
|
30,000
|
Required:
a) Prepare the Income Statement using the Multi-Step format.
b) Prepare a Statement of Changes in Equity for the year ended August 31, 2015.
c) Prepare a Classified Statement of Financial Position / Balance Sheet at Aug 31, 2015.