Below are some of the account balances of FDN Company. |Advertising expense P161,000 Depreciation expense - Office furniture 58,000 Depreciation expense - Store equipment 35,000 Freight in 15,300 Freight out 6,800 Insurance expense 77,000 Professional fees 20,000 Repairs and maintenance expense 30,000

Below are some of the account balances of FDN Company. |Advertising expense P161,000 Depreciation expense - Office furniture 58,000 Depreciation expense - Store equipment 35,000 Freight in 15,300 Freight out 6,800 Insurance expense 77,000 Professional fees 20,000 Repairs and maintenance expense 30,000

Name: Below are some of the account balances of FDN Company.Advertising exp
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Description: Below are some of the account balances of FDN Company.Advertising expenseP161,000Depreciation expense - Office furniture58,000Depreciation expense - Store equipment35,000Freight in15,300Freight out6,800Insurance expense77,000Professional fees20,000R

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.2P: Costs and Expenses The following costs are incurred by a retailer: Display fixtures in a retail...

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Chart of accounts Monet Paints Co. is a newly organized retail business with a list of accounts arranged in alphabetical order, as follows: Accounts Payable Land Accounts Receivable Miscellaneous Administrative Accumulated DepreciationOffice Equipment Expense Accumulated DepreciationStore Equipment Miscellaneous Selling Expense Advertising Expense Notes Payable Cash Office Equipment Common Stock Office Salaries Expense Cost of Goods Sold Office Supplies Customer Refunds Payable Office Supplies Expense Delivery Expense Prepaid Insurance Depreciation ExpenseOffice Equipment Rent Expense Depreciation ExpenseStore Equipment Retained Earnings Dividends Salaries Payable Estimated Returns Inventory Sales Insurance Expense Sales Salaries Expense Interest Expense Store Equipment Interest Revenue Store Supplies Inventory Store Supplies Expense Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, and so on); the second digit is to indicate the subclassification (11 for current assets, and so on); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Inventory, 115 for Estimated Returns Inventory, and so on).
Costs and Expenses The following costs are incurred by a retailer: Display fixtures in a retail store Advertising Merchandise for sale Incorporation (i.e., legal costs, stock issue costs) Cost of a franchise Office supplies Wages and salaries Computer software Computer hardware Required For each cost, explain whether all of the cost or only a portion of the cost would appear as an expense on the income statement for the period in which the cost was incurred. If not all of the cost would appear on the income statement for that period, explain why not.
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page. Income Statements Year Ended December 31, 20X2 20X1 Sales 8000 5000 Cost of goods sold (COGS) 7300 4380 EBITDA 700 620 Depreciation and Amortization 200 120 EBIT 500 500 Interest Expense 75 100 EBT 425 400 Taxes (20%) 85 80 Net Income 340 320 Balance Sheets As of December 31, 20X2 20X1 Assets Current assets: Cash 300 20 Short term investments 460 100 Accounts receivable 640 400 Inventories 800 480 Total current assets 2200 1000 Net plant and equipment 1800 1500 Total assets 4000 2500 Liabilities and Stockholders' Equity Current liabilities: Notes…
Pharoah Company had the following account balances: Sales revenue $ 447000 Cost of goods sold 210000 Salaries and wages expense 30500 Depreciation expense 59500 Dividend revenue 10000 Utilities expense 22000 Rent revenue 58500 Interest expense 35500 Sales returns and allow. 33500 Advertising expense 38000 What would Pharoah report as total expenses in a single-step income statement? $429k $185500 $405500 $395500
Please assist me in the calculations of following question : JC ENTERPRISE SOLD MERCHANDISE FOR $15000.00 purchased office equipment on account $ 4000.00 PAID RENT $12000.00 PAID SALARY $ 3000.00 PAID UTILITIES EXPENSE $ 5000.00 PAID ADVERTISING EXPENSE $3000.00 PAID TRANSPOTATION EXPENSE $ 1200.00 PURCHASE SUPPLIES ON ACCOUNT $ 750.00 performed service on account 4 5000.00 collected fees $ 6000.00 Prepare Journal entries, General ledger, Income statement (Profit/Loss Statement) and Balance sheet
Use the following information (in thousands):a. ¥126,000 d. ¥63,000Answer:1Sales revenue¥300,000 Gain on sale of equipment90,000 Cost of goods sold164,000 Interest expense16,000 Selling & administrative expenses30,000 Income tax rate30%Determine the amount of net income.
The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 .10 .30 .25 .20 .15 S2 80,000 .20 .40 .20 .20 S3 45,000 .60 .35 .05 P1 78,000 P2 99,000 P3 45,000 __________24. What amount will be allocated by S2 to P2 under direct method?
Based on this information can you create an Income Statment Accounts Receivable $1,200 Accounts Payable $20,200 Advertising Expense $750 Cash $28,600 Cost of Goods Sold $8,800 Drawings by Owner $1,625 Equipment $5,150 Interest Expense $300 Interest Payable $300 Inventory $3,900 Investments by Owner $10,000 Rent Expense $3,600 Sales Returns $600 Sales Revenue $11,900 Service Revenue $20,750 Supplies $600 Supplies Expense $2,025 Utilities Expense $600 Wages Expense $5,400
Does anyone know how to prepare an income statement regarding this? Pls help ACCOUNT AMOUNT Revenue 500,000 Cost of Good Sold 300,000 Wage Expense 100,000 Rent Expense 30,000 Supplies Expense 20,000 Utilities Expense 10,000 Promotion Expense 50,000
The following information of ABC Merchandise Business for the year ended 31st December 2020 Account Amount (OMR) Sales Discounts 2200 Sales returns 22,000 Sales 257,000 Interest revenue 1000 Gain on Sale of land 2000 Interest expense 7,000 Salesman Salaries 38,000 Office rent 1400 Cost of Goods sold 160,000 Electricity expense – Office 300 Rent expense - office 100 Salesman commission 12500 Advertising expense 3500 Marketing expense 2500 Other non-operating expense 1000 What will be the Income from operation assumes that the business follows Multi step income statement? a. OMR 19,500 b. OMR 9,500 c. OMR 14,500 d. OMR 10,000
Question 2You are to study the following financial statements for two furniture stores andthen answer the questions which follow: Home Furnitures Comfort FurnituresRM RM RM RM Statement of Profit or LossSales 700,000 950,000Less: Cost of goods sold:Opening inventories 150,000 100,000Purchases 300,000 420,000450,000 520,000 Less: Closing inventories (115,000) (335,000) (95,000) (425,000)Gross profit 365,000 525,000Less: Expenses:Depreciation 5,000 20,000Wages & salaries 190,000 300,000Other expenses 65,000 (260,000) 50,000 (370,000)Net profit 105,000 155,000Statement of Financial PositionNon-current assetsEquipment 50,000 20,000Current assetsInventories 115,000 95,000Trade receivables 135,000 150,000Bank 25,000 275,000 12,500 257,500325,000 277,500 Equity:Opening capital 85,000 80,000Add: Net profit 105,000 155,000190,000 235,000 Less: Drawings (39,000) 151,000 (58,500) 176,500Current liabilitiesTrade payables 174,000 101,000325,000 277,500 Required: (a) Calculate the following…