Typewritten for an upvote. No upvote for handwritten. Please skip if you have already done this. Thank you Learning Task 4: Prepare the financial statements of the given problem...52,000Accounts Payable38,000Accounts Receivable1,200Accrued Interest Expense8,000Accumulated Depreciation StoreEquipmentAdvertising Expense25,000Allowance for Bad Debts2,300Bad Debts Expense1.100Cash21,000Depreciation Expense - Store Equipment4,000Freight in2,700Freight-out2,200Insurance Expense18.000Interest Expense4,400Kitty, Capital66,700Kitty, Drawing12,0003855Merchandise Inventory, January 143.000SEVES RABIESMerchandise Inventory, December 3147,000CONSNotes Payable (due June 30, 2018)100,000Prepaid Rent60,000Purchase Returns and Allowances1,500Purchases295,000Salaries Expense140,000Sales470,000Sales Discount3.000Store Equipment40,0002014TOOLSTVOnStore Supplies3.600AMORA RStore Supplies Expense2,700Unearned Sales Revenue14,000Required: Based on the account balances listed above, prepare the following for HelloTrading:(a) Multiple Income Statement for the year ended December 31, 2015(b) A Statement of Changes in Owner's Equity for the year ended Dec 31, 2015(c) A report-form Statement of Financial Position/Balance Sheet as of Dec 31, 2015.

Answered: Image /qna-images/answer/82771273-3dad-4d8c-9372-4694dda5575c.jpg

Learning Task 4: Prepare the financial statements of the given problem... 52,000 Accounts Payable Accounts Receivable 38,000 Accrued Interest Expense 1,200 Accumulated Depreciation - Store Equipment 8,000 Advertising Expense 25,000 Allowance for Bad Debts 2,300 Bad Debts Expense 1,100 Cash 21,000 1672 Depreciation Expense - Store Equipment 4,000 Freight-in 2,700 Freight-out 2,200 Insurance Expense 18,000 Interest Expense 4,400 Kitty, Capital 66,700 Kitty, Drawing 12,000 Merchandise Inventory, January 1 43,000 Merchandise Inventory, December 31 47.000 Notes Payable (due June 30, 2018) 100,000 Prepaid Rent 60,000 Purchase Returns and Allowances 1,500 Purchases 295,000 Salaries Expense 140,000 Sales 470,000 Sales Discount 3,000 Store Equipment 40,000 Store Supplies 3.600 Store Supplies Expense 2,700 Unearned Sales Revenue 14,000 WHENLAN

Learning Task 4: Prepare the financial statements of the given problem... 52,000 Accounts Payable Accounts Receivable 38,000 Accrued Interest Expense 1,200 Accumulated Depreciation - Store Equipment 8,000 Advertising Expense 25,000 Allowance for Bad Debts 2,300 Bad Debts Expense 1,100 Cash 21,000 1672 Depreciation Expense - Store Equipment 4,000 Freight-in 2,700 Freight-out 2,200 Insurance Expense 18,000 Interest Expense 4,400 Kitty, Capital 66,700 Kitty, Drawing 12,000 Merchandise Inventory, January 1 43,000 Merchandise Inventory, December 31 47.000 Notes Payable (due June 30, 2018) 100,000 Prepaid Rent 60,000 Purchase Returns and Allowances 1,500 Purchases 295,000 Salaries Expense 140,000 Sales 470,000 Sales Discount 3,000 Store Equipment 40,000 Store Supplies 3.600 Store Supplies Expense 2,700 Unearned Sales Revenue 14,000 WHENLAN

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(Learning Objective 4: Calculate the effects of business transactions on selectedratios) Financial statement data of Greatland Engineering include the following items:Cash ........................................Short-term investments..............Accounts receivable, net............Inventories ................................Prepaid expenses.......................Total assets ...............................Short-term notes payable...........$ 26,00036,00085,000147,0006,000677,00049,000Accounts payable ......................Accrued liabilities......................Long-term notes payable ...........Other long-term liabilities.........Net income................................Number of commonshares outstanding ...........$107,00032,000163,00034,00099,00046,000Requirements1. Calculate Greatland’s current ratio, debt ratio, and earnings per share. Round all ratios totwo decimal places.2. Calculate the three ratios after evaluating the effect of each transaction that follows.Consider each…
(Learning Objective 1: Identify the current liabilities associated with operating activities)Identify the current liability associated with each of the following operating activities:1. Perform work on a warranty claim2. Pay income taxes3. Purchase supplies4. Pay payroll taxes5. Borrow money for operations using a short-term note6. Process cash received in advance from customers7. Purchase inventory8. Pay employee salaries
E3-39B. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability) BurnesConsulting Company reported these ratios at December 31, 2018 (dollar amounts in millions):Current ratio = $20 = 2.00 $10 $60 Debt ratio = = 0.50 $30Burnes Consulting completed these transactions during 2019:a. Purchased equipment on account, $4b. Paid long-term debt, $7c. Collected cash from customers in advance, $5d. Accrued interest expense, $6e. Made cash sales, $8Determine whether each transaction improved or hurt the company’s current ratio and debt ratio.
(Learning Objectives 1, 2, 3, 4, 5: Account for and evaluate accounts receivableincluding returns, sales discounts, and uncollectible accounts) The balance sheet of Aqua,Inc., a world leader in the design and sale of telescopic equipment, reported the followinginformation on its balance sheets for 2018 and 2017 (figures are in thousands):$8,300(In thousands) December 31, 2018$8,560December 31, 2017Accounts receivable (net of allowance of $1,080 and $940,respectively)In 2018, Aqua recorded $15,700 (gross) in sales (all on account), of which $700 (gross) wasreturned for credit. The cost of sales was $7,700; the cost of the merchandise returned was $400.Aqua offers its customers credit terms of 2/10, n/30. Ninety percent of collections on accountsreceivable were made within the discount period. Aqua wrote off uncollectible accounts receivablein the amount of $120 (gross) during 2018. Sales returns are estimated to be 4% of sales.Requirements1. Calculate the amount of uncollectible…
E1-24A. (Learning Objective 4: Construct a balance sheet) At December 31, 2018, LandyProducts has cash of $24,000, receivables of $18,000, and inventory of $80,000. The company’sequipment totals $182,000. Landy owes accounts payable of $22,000 and long-term notespayable of $172,000. Common stock is $34,500. Prepare Landy’s balance sheet at December 31,2018, complete with its proper heading. Use the accounting equation to compute retainedearnings.
(Learning Objective 5: Construct a trial balance) Assume that Harbor Marine Company reported the following summarized data at December 31, 2018. Accounts appear in noparticular order; dollar amounts are in millions.Other liabilities ..................... $ 220 Cash......................................Expenses ............................... 26Stockholders’ equity.............. 5Revenues............................... $37Other assets........................... 4Accounts payable .................. 6Prepare the trial balance of Harbor Marine Company at December 31, 2018. List the accountsin their proper order. How much was the company’s net income or net loss?
(Learning Objective 4: Account for accounts receivable) Perform the followingaccounting tasks for the receivables of Able and Bowman, a law firm, at December 31, 2018.Requirements1. Set up T-accounts for Cash, Accounts Receivable, and Service Revenue. Start with thebeginning balances as follows: Cash $28,000; Accounts Receivable $103,000; and ServiceRevenue $0. Post the following 2018 transactions to the T-accounts:a. Service revenue of $705,000, all on accountb. Collections on account, $713,0002. What are the ending balances of Cash, Accounts Receivable, and Service Revenue?
(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.
E3-18A. (Learning Objectives 1, 2: Explain how accrual accounting differs from cash-basisaccounting; apply the revenue and expense recognition principles) During 2018, Able Network,Inc., which designs network servers, earned revenues of $820 million. Expenses totaled $520million. Able collected all but $20 million of the revenues and paid $610 million on its expenses.a. Under accrual accounting, what amount of revenue should Able report for 2018? Howdoes the revenue principle help to answer this question?b. Under accrual accounting, what amount of total expense should Able report for 2018?Which accounting principle helps to answer this question?c. Redo parts a and b using the cash basis. Explain how the accrual basis differs from thecash basis.d. Which financial statement reports revenues and expenses? Which statement reports cashreceipts and cash payments?
(Learning Objective 4: Construct the financial statements) Suppose Robin SportingGoods Company reported the following data at July 31, 2018, with amounts in thousands:Cost of goods sold................. $136,800Cash...................................... 50,000Property and equipment, net ... 19,400Common stock...................... 26,000Inventories ............................ 36,000Long-term liabilities.............. 11,700Dividends.............................. 0Retained earnings,July 31, 2017 ............ $ 31,500Accounts receivable....... 34,000Net revenues ................. 191,000Total current liabilities.. 80,000All other expenses......... 29,000Other current assets ...... 5,000Other assets................... 30,000Use these data to prepare Robin Sporting Goods Company’s single-step income statement forthe year ended July 31, 2018; statement of retained earnings for the year ended July 31, 2018;and classified balance sheet at July 31, 2018. Use the report format for the balance…
3-28A. (Learning Objective 6: Analyze and evaluate liquidity and debt-paying ability)Peyton Company reported these ratios at December 31, 2018 (dollar amounts in millions):Current ratio = $20 = 2.00 $10$70 Debt ratio = = 0.57 $40Peyton Company completed these transactions during 2019:a. Purchased equipment on account, $5b. Paid long-term debt, $5c. Collected cash from customers in advance, $4d. Accrued interest expense, $3e. Made cash sales, $7Determine whether each transaction improved or hurt the company’s current ratio and debt ratio.
Learning Objective 5: Solve for cash and construct a trial balance) Assume thatOld Center Company reported the following summarized data at September 30, 2018. Accountsappear in no particular order; dollar amounts are in millions.Stockholders’ equity, September 30, 2018*..Accounts payable .........................................Other assets..................................................Other liabilities ............................................$ 68232Revenues...........................Expenses ...........................Cash..................................$ 3321?*Stockholders’ equity does not include the current period net income.Requirements1. Solve for Cash.2. Prepare the trial balance of Old Center at September 30, 2018. List the accounts in theirproper order. How much was Old Center Company’s net income or net loss?