Problem 3-8 Financial Statements (LO1)Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement forOmega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should goin the balance sheet or income statement and whether it is an asset or liability.BALANCE SHEET$ 35PayablesLess accumulated depreciationInventories$50120Receivables35Total current assetsTotal current liabilitiesInterest expense$ 25Long-term debtProperty, plant, and equipment$350520Total liabilitiesNet fixed assetsShareholders' equity$90Total liabilities andTotal assetsshareholders' equityINCOME STATEMENTNet sales$700Cost of goods soldSelling, general, and administrative expenses58038ЕBITDebt due for repayment$ 25Cash15Taxable incomeТахes$ 15Depreciation12Net income Prepare the balance sheet and income statement by rearranging the above items. (Be sure to list the assets and liabilities in order oftheir liquidity. Enter all amounts as positive values.)BALANCE SHEETAssetsLiabilities and Shareholders' EquityTotal current assets$0 Total current liabilitiesTotal liabilitiesNet fixed assets$Total assets0 Total liabilities and shareholders' equityINCOME STATEMENT$$$%24%24%24

the balance sheet is a financial statement that shows the business portion like current debt, total…

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET $ 35 Payables Less accumulated depreciation Total current assets Inventories $50 120 Receivables 35 Total current liabilities $25 Long-term debt Property, plant, and equipment Net fixed assets Interest expense Total liabilities Shareholders' equity $350 520 $90 Total liabilities and Total assets shareholders' equity INCOME STATEMENT Net sales $700 Cost of goods sold Selling, general, and administrative expenses 580 38 ЕBIT Debt due for repayment $ 25 Cash 15 Taxable income Taxes $ 15 Depreciation Net income 12

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET $ 35 Payables Less accumulated depreciation Total current assets Inventories $50 120 Receivables 35 Total current liabilities $25 Long-term debt Property, plant, and equipment Net fixed assets Interest expense Total liabilities Shareholders' equity $350 520 $90 Total liabilities and Total assets shareholders' equity INCOME STATEMENT Net sales $700 Cost of goods sold Selling, general, and administrative expenses 580 38 ЕBIT Debt due for repayment $ 25 Cash 15 Taxable income Taxes $ 15 Depreciation Net income 12

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.3P: P2-3 Financial statements The following amounts were taken from the accounting records of Padget...

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