Income Statement, Statement of Owner's Equity and Balance Sheet Instructions Amount Descriptions Income Statement Statement of Owner’s Equity Balance Sheet Instructions Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000. Backlund Farm Supply End-of-Period Spreadsheet (Partial) December 31, 20-- 1 ACCOUNT TITLE ADJUSTED TRIAL BALANCE DEBIT ADJUSTED TRIAL BALANCE CREDIT 2 Cash 25,784.00 3 Accounts Receivable 10,296.00 4 Merchandise Inventory 71,280.00 5 Estimated Returns Inventory 1,320.00 6 Supplies 2,640.00 7 Prepaid Insurance 1,980.00 8 Land 99,000.00 9 Building 385,000.00 10 Accumulated Depreciation-Building 22,000.00 11 Store Equipment 132,000.00 12 Accumulated Depreciation-Store Equipment 3,960.00 13 Accounts Payable 10,516.00 14 Customer Refunds Payable 1,760.00 15 Wages Payable 1,320.00 16 Sales Tax Payable 3,784.00 17 Note Payable 17,600.00 18 J. Buckland, Capital 587,752.00 19 J. Buckland, Drawing 5,280.00 20 Income Summary 65,120.00 71,280.00 21 880.00 1,320.00 22 Sales 358,644.00 23 Sales Returns and Allowances 5,896.00 24 Purchases 178,904.00 25 Purchases Returns and Allowances 4,488.00 26 Purchases Discounts 3,520.00 27 Freight-In 1,760.00 28 Wages Expense 76,340.00 29 Advertising Expense 1,320.00 30 Supplies Expense 880.00 31 Phone Expense 3,010.00 32 Utilities Expense 3,150.00 33 Insurance Expense 1,760.00 34 Depreciation Expense-Building 11,000.00 35 Depreciation Expense-Store Equipment 1,980.00 36 Miscellaneous Expense 660.00 37 Interest Expense 704.00 38 $1,087,944.00 $1,087,944.00 39 353,364.00 439,252.00 40 Net Income $85,888.00 Required: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet. Amount Descriptions Amount Descriptions additional investments Cost of goods purchased Cost of goods sold current portion Decrease in capital Goods available for sale Gross profit Income from operations Increase in capital J. Backlund, capital J. Backlund, capital, December 31, 20-- J. Backlund, capital, January 1, 20-- Merchandise inventory, December 31, 20-- Merchandise inventory, January 1, 20-- Net income Net loss Net purchases Net sales Total assets Total current assets Total current liabilities Total investment Total liabilities Total liabilities and owner’s equity Total operating expenses withdrawals for the year Income Statement 1. Prepare a multiple-step income statement. Income Statement Instructions Backlund Farm Supply Income Statement For Year Ended December 31, 20-- 1 Revenue from sales: 2 3 4 5 Cost of goods sold: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Operating expenses: 20 21 22 23 24 25 26 27 28 29 30 31 Other expenses: 32 33 Statement of Owner’s Equity 2. Prepare a statement of owner’s equity. Statement of Owner’s Equity Instructions Backlund Farm Supply Statement of Owner’s Equity For Year Ended December 31, 20-- 1 2 3 4 5 6 7 Balance Sheet 3. Prepare a balance sheet. Additional Instructions Backlund Farm Supply Balance Sheet December 31, 20-- 1 Assets 2 Current assets: 3 4 5 6 7 8 9 10 Property, plant, and equipment: 11 12 13 14 15 16 17 Liabilities 18 Current liabilities: 19 20 21 22 23 24 25 Long-term liabilities: 26 27 28 29 Owner’s equity 30 31

Income Statement, Statement of Owner's Equity and Balance Sheet Instructions Amount Descriptions Income Statement Statement of Owner’s Equity Balance Sheet Instructions Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000. Backlund Farm Supply End-of-Period Spreadsheet (Partial) December 31, 20-- 1 ACCOUNT TITLE ADJUSTED TRIAL BALANCE DEBIT ADJUSTED TRIAL BALANCE CREDIT 2 Cash 25,784.00 3 Accounts Receivable 10,296.00 4 Merchandise Inventory 71,280.00 5 Estimated Returns Inventory 1,320.00 6 Supplies 2,640.00 7 Prepaid Insurance 1,980.00 8 Land 99,000.00 9 Building 385,000.00 10 Accumulated Depreciation-Building 22,000.00 11 Store Equipment 132,000.00 12 Accumulated Depreciation-Store Equipment 3,960.00 13 Accounts Payable 10,516.00 14 Customer Refunds Payable 1,760.00 15 Wages Payable 1,320.00 16 Sales Tax Payable 3,784.00 17 Note Payable 17,600.00 18 J. Buckland, Capital 587,752.00 19 J. Buckland, Drawing 5,280.00 20 Income Summary 65,120.00 71,280.00 21 880.00 1,320.00 22 Sales 358,644.00 23 Sales Returns and Allowances 5,896.00 24 Purchases 178,904.00 25 Purchases Returns and Allowances 4,488.00 26 Purchases Discounts 3,520.00 27 Freight-In 1,760.00 28 Wages Expense 76,340.00 29 Advertising Expense 1,320.00 30 Supplies Expense 880.00 31 Phone Expense 3,010.00 32 Utilities Expense 3,150.00 33 Insurance Expense 1,760.00 34 Depreciation Expense-Building 11,000.00 35 Depreciation Expense-Store Equipment 1,980.00 36 Miscellaneous Expense 660.00 37 Interest Expense 704.00 38 $1,087,944.00 $1,087,944.00 39 353,364.00 439,252.00 40 Net Income $85,888.00 Required: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet. Amount Descriptions Amount Descriptions additional investments Cost of goods purchased Cost of goods sold current portion Decrease in capital Goods available for sale Gross profit Income from operations Increase in capital J. Backlund, capital J. Backlund, capital, December 31, 20-- J. Backlund, capital, January 1, 20-- Merchandise inventory, December 31, 20-- Merchandise inventory, January 1, 20-- Net income Net loss Net purchases Net sales Total assets Total current assets Total current liabilities Total investment Total liabilities Total liabilities and owner’s equity Total operating expenses withdrawals for the year Income Statement 1. Prepare a multiple-step income statement. Income Statement Instructions Backlund Farm Supply Income Statement For Year Ended December 31, 20-- 1 Revenue from sales: 2 3 4 5 Cost of goods sold: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Operating expenses: 20 21 22 23 24 25 26 27 28 29 30 31 Other expenses: 32 33 Statement of Owner’s Equity 2. Prepare a statement of owner’s equity. Statement of Owner’s Equity Instructions Backlund Farm Supply Statement of Owner’s Equity For Year Ended December 31, 20-- 1 2 3 4 5 6 7 Balance Sheet 3. Prepare a balance sheet. Additional Instructions Backlund Farm Supply Balance Sheet December 31, 20-- 1 Assets 2 Current assets: 3 4 5 6 7 8 9 10 Property, plant, and equipment: 11 12 13 14 15 16 17 Liabilities 18 Current liabilities: 19 20 21 22 23 24 25 Long-term liabilities: 26 27 28 29 Owner’s equity 30 31

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 8SPB: INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND BALANCE SHEET Backlund Farm Supply completed the...

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Income Statement, Statement of Owner's Equity and Balance Sheet

Instructions

Amount Descriptions

Income Statement

Statement of Owner’s Equity

Balance Sheet

Instructions

Backlund Farm Supply completed the Adjusted Trial Balance for the year ended December 31, 20--. Owner’s equity as of January 1, 20--, was $507,752. The current portion of Note Payable is $3,000.

Backlund Farm Supply

End-of-Period Spreadsheet (Partial)

December 31, 20--

1	ACCOUNT TITLE	ADJUSTED TRIAL BALANCE DEBIT	ADJUSTED TRIAL BALANCE CREDIT
2	Cash	25,784.00
3	Accounts Receivable	10,296.00
4	Merchandise Inventory	71,280.00
5	Estimated Returns Inventory	1,320.00
6	Supplies	2,640.00
7	Prepaid Insurance	1,980.00
8	Land	99,000.00
9	Building	385,000.00
10	Accumulated Depreciation-Building		22,000.00
11	Store Equipment	132,000.00
12	Accumulated Depreciation-Store Equipment		3,960.00
13	Accounts Payable		10,516.00
14	Customer Refunds Payable		1,760.00
15	Wages Payable		1,320.00
16	Sales Tax Payable		3,784.00
17	Note Payable		17,600.00
18	J. Buckland, Capital		587,752.00
19	J. Buckland, Drawing	5,280.00
20	Income Summary	65,120.00	71,280.00
21		880.00	1,320.00
22	Sales		358,644.00
23	Sales Returns and Allowances	5,896.00
24	Purchases	178,904.00
25	Purchases Returns and Allowances		4,488.00
26	Purchases Discounts		3,520.00
27	Freight-In	1,760.00
28	Wages Expense	76,340.00
29	Advertising Expense	1,320.00
30	Supplies Expense	880.00
31	Phone Expense	3,010.00
32	Utilities Expense	3,150.00
33	Insurance Expense	1,760.00
34	Depreciation Expense-Building	11,000.00
35	Depreciation Expense-Store Equipment	1,980.00
36	Miscellaneous Expense	660.00
37	Interest Expense	704.00
38		$1,087,944.00	$1,087,944.00
39		353,364.00	439,252.00
40	Net Income	$85,888.00

Required:

1.	Prepare a multiple-step income statement.
2.	Prepare a statement of owner’s equity.
3.	Prepare a balance sheet.

Amount Descriptions

Amount Descriptions
additional investments
Cost of goods purchased
Cost of goods sold
current portion
Decrease in capital
Goods available for sale
Gross profit
Income from operations
Increase in capital
J. Backlund, capital
J. Backlund, capital, December 31, 20--
J. Backlund, capital, January 1, 20--
Merchandise inventory, December 31, 20--
Merchandise inventory, January 1, 20--
Net income
Net loss
Net purchases
Net sales
Total assets
Total current assets
Total current liabilities
Total investment
Total liabilities
Total liabilities and owner’s equity
Total operating expenses
withdrawals for the year

Income Statement

1. Prepare a multiple-step income statement.

Income Statement Instructions

Backlund Farm Supply

Income Statement

For Year Ended December 31, 20--

1	Revenue from sales:
2
3
4
5	Cost of goods sold:
6
7
8
9
10
11
12
13
14
15
16
17
18
19	Operating expenses:
20
21
22
23
24
25
26
27
28
29
30
31	Other expenses:
32
33

Statement of Owner’s Equity

2. Prepare a statement of owner’s equity.

Statement of Owner’s Equity Instructions

Backlund Farm Supply

Statement of Owner’s Equity

For Year Ended December 31, 20--

1
2
3
4
5
6
7

Balance Sheet

3. Prepare a balance sheet.

Additional Instructions

Backlund Farm Supply

Balance Sheet

December 31, 20--

1	Assets
2	Current assets:
3
4
5
6
7
8
9
10	Property, plant, and equipment:
11
12
13
14
15
16
17	Liabilities
18	Current liabilities:
19
20
21
22
23
24
25	Long-term liabilities:
26
27
28
29	Owner’s equity
30
31

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