Bills Payables 45 000 Merit is a Company that operates in the Retail business and has a 30 June 2021 year end. The Books of Merit Outstanding Expenses 5 000 private limited are as follows: Total Equity and Liabilities 6 400 000 Statement of Profit or loss and other comprehensive income as at 30 June 2021 R Additional Information Sales 1 500 000 1. Opening Inventory was R 325 000 Cost of Sales (750 000) 2. A year has 360 days Gross Profit 750 000 Office expenses (Including interest on debentures) (125 000) Required Selling expenses (125 000) Calculate the following ratios, Answer ALL questions. Profit before Tax 500 000 Tax (250 000) Net Profit 250 000 Statement of Financial Position as at 30 June 2021 R Assets Fixed Assets 5 500 000 Inventory 175 000 10. Rate of retum on equity shares Trade Receivables 350 000 11. Days' supply (Inventory) on hand Bills Receivables 50 000 Cash 225 000 Intangible Assets 100 000 Total Assets 6 400 000 Equity and Liabilities s Share Capital 2 000 000 10% Preference shares 2 000 000 Retained Eamings 1 100 000 10% Debentures 1 000 000 Trade Payables 100 000 Bank Overdraft 150 000

Bills Payables 45 000 Merit is a Company that operates in the Retail business and has a 30 June 2021 year end. The Books of Merit Outstanding Expenses 5 000 private limited are as follows: Total Equity and Liabilities 6 400 000 Statement of Profit or loss and other comprehensive income as at 30 June 2021 R Additional Information Sales 1 500 000 1. Opening Inventory was R 325 000 Cost of Sales (750 000) 2. A year has 360 days Gross Profit 750 000 Office expenses (Including interest on debentures) (125 000) Required Selling expenses (125 000) Calculate the following ratios, Answer ALL questions. Profit before Tax 500 000 Tax (250 000) Net Profit 250 000 Statement of Financial Position as at 30 June 2021 R Assets Fixed Assets 5 500 000 Inventory 175 000 10. Rate of retum on equity shares Trade Receivables 350 000 11. Days' supply (Inventory) on hand Bills Receivables 50 000 Cash 225 000 Intangible Assets 100 000 Total Assets 6 400 000 Equity and Liabilities s Share Capital 2 000 000 10% Preference shares 2 000 000 Retained Eamings 1 100 000 10% Debentures 1 000 000 Trade Payables 100 000 Bank Overdraft 150 000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 1MP

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Recording Various Liabilities Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. ( Note: Assume a periodic inventory system.) Year-end wages of $40,000 were incurred, but not paid. Related federal income taxes of $13,000 and Medicare taxes of $580 were withheld. Employee wages are all above the Social Security maximum, so only Medicare was paid. b. Year-end estimated income taxes payable, but unpaid, for the year were $113,615. c. Sold merchandise on account for $3,636, including state sales taxes of $180. ( Note: Assume a periodic inventory system.) d. Employers share of Medicare taxes for the period was $580. The taxes will be paid at a later date. e. Borrowed cash under a 180-day, 8%, $155,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Multiple-Step and Single-Step In coin Statements The following items were derived from Gold Companys December 31 adjusted trial balance: Additional data: 1. Screen thousand share of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a multiple-st income statement. 2. Prepare a single step income statement. 3. Next Level Discuss how Gold Companys income statement in Requirement I might be different if it used IFRS
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.
Comprehensive: Income Statement and Supporting Schedules The following s a partial list of the account balances, after adjustments, of Silvoso Company on December 31, 2019: The following information is also available: 1. The company declared and paid a 0.60 per share cash dividend on its common stock. The stock was outstanding the entire year. 2. A physical count determined that the December 31, 2019, ending inventory is 34,100. 3. A tornado destroyed a warehouse, resulting in a pretax loss of 12,000. The last tornado in this area had occurred 10 years earlier. 4. On May 1, 2019, the company sold an unprofitable division (R). From January through April, Division R (a major component of the company) had incurred a pretax operating loss of 8,700. Division R was sold at a pretax gain of 10,000. 5. The company is subject to a 30% income tax rate. Its income tax expense for 2019 totals 4,230. The breakdown is as follows: 6. The company had average shareholders equity of 150,000 during 2019. Required: 1. As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense. 2. Prepare a 2019 multiple-step income statement for Silvoso. Include any related note to the financial statements. 3. Prepare a 2019 retained earnings statement. 4. Next Level What was Silvosos return on common equity for 2019? What is your evaluation of Silvosos return on common equity if last year it was 10%?
Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance: Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2019 multiple-step income statement. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 statement of comprehensive income.
CORPORATE INCOME TAX Stanton Company estimates that its 20-1 income tax will be 80,000. Based on this estimate, it will make four quarterly payments of 20,000 each on April 15, June 15, September 15, and December 15. 1. Prepare the journal entry for April 15. 2. Assume that all four quarterly payments have been entered in the general journal. On December 31, Stantons actual income tax amounts to 86,000. This amount will be paid by March 15, 20-2. Prepare the journal entry to record the additional income tax owed.