Retained earnings and balance sheet data:Accounts payableAccounts receivableAccumulated depreciation-office buildings and equipmentAccumulated depreciation-store buildings and equipmentAllowance for doubtful accountsBonds payable, 5%, due in 10 yearsCashCommon stock, $20 par (400,000 shares authorized;85,000 shares issued, 94,600 outstanding), January 1, 20Y8Dividends:Sales$194,300545,0001,580,0004,126,000Operating oxpopcos:8,450500,000282,850Cash dividends for common stockCash dividends for preferred stockGoodwillIncome tax payableInterest receivableInventory (December 31, 20Y8), at lower of cost (FIFO) or marketOffice buildings and equipmentPaid-in capital from sale of treasury stock, January 1, 2018Paid-in capital in excess of par-common stock, January 1, 20Y8Paid-in capital in excess of par-preferred stock, January 1, 20Y8Preferred 5% stock, $80 par (30,000 shares authorized;16,000 shares issued), January 1, 20Y8Premium on bonds payablePrepaid expensesRetained earnings, January 1, 20Y8Store buildings and equipmentTreasury stock, January 1, 20Y8a. Prepare a multiple-step income statement for the year ended December 31, 20Y8.Equinox Products Inc.Income StatementFor the Year Ended December 31, 20Y81,700,000155,120100,000700,00044,0001,200778,0004,320,000736,80070,00001,280,00019,00027,4008,197,22012,560,000$$0 Income statement data:Advertising expenseCost of goods soldDelivery expenseDepreciation expense-office buildings and equipmentDepreciation expense-store buildings and equipmentIncome tax expenseInterest expenseInterest revenueMiscellaneous administrative expenseMiscellaneous selling expenseOffice rent expenseOffice salaries expenseOffice supplies expenseSalesSales commissionsSales salaries expenseStore supplies expenseRetained earnings and balance sheet data:Accounts payableAccounts receivableAccumulated depreciation-office buildings and equipmentAccumulated depreciation-store buildings and equipmentAllowance for doubtful accountsBonds payable, 5%, due in 10 yearsCashCommon stock, $20 par (400,000 shares authorized;85,000 shares issued, 94,600 outstanding), January 1, 20Y8Dividends:Cash dividends for common stockCash dividends for preferred stockGoodwillIncome tax payable$150,0003,700,00030,00030,000100,000140,50021,00030,0007,50014,00050,000170,00010,0005,313,000185,000385,00021,000$194,300545,0001,580,0004,126,0008,450500,000282,8501,700,000155,120100,000700,00044,000

Lets understand the basics. Income statement can be prepared using format of , (1) Single step…

Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 Dividends: $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000

Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 Dividends: $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

See similar textbooks

Similar questions

Which of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
Which of the following accounts would be reported under operating expenses on a multi-step income statement? A. sales B. advertising expense C. sales returns and allowances D. interest expense
A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses
Sales Returns and Allowances is classified as a contra-cost account on the income statement.
Operating expenses are comprised of the following: O General and Administrative Expense, Cost of Goods Sold, Marketing and Selling Expense General and Administrative Expense, Interest Expense, Cost of Goods Sold O Marketing and Selling Expense, General and Administrative Expense, Finance Costs O Marketing and Selling Expense, Other Income
Which is the CORRECT order for items to appear on the income statement? Group of answer choices sales revenue, gross profit, net income, operating expenses cash, accounts receivable, inventory, property/plant/equipment, intangible assets sales revenue, operating expenses, gross profit, net income sales revenue, cost of goods sold, gross profit, operating expenses sales revenue, gross profit, cost of goods sold, operating expenses
The account that appears in the chart of accounts for a merchandising entity but not for service entity is a. Accounts receivable b. Advertising expense c. Sales returns and allowances d. Accumulated depreciation
For each of the following, indicate whether the item would be reported on the balance sheet (B/S),reported on the income statement (I/S), or not shown in the financial statements (Not) and whetherit relates to a service company (SC) or merchandising company (MC).Financial Statement Type of CompanyInventorySales RevenueCost of Goods Available for SaleService Revenue
Accounting for Merchandising Businesses and Inventory and Assets Define the following: Cost of goods sold Credit memo Credit terms Debit memo FIFO FOB Gross profit Invoice LIFO Net sales Periodic inventory Perpetual inventory Sales Selling expense Subsidiary ledger Trade discount Weighted average
Which of the following represents the components of the income statement for a service business? Select one: a. Service Revenue – Operating Expenses = operating income b. Sales Revenue – Cost of Goods Manufactured = gross profit c. Sales Revenue – Cost of Goods Sold = gross profit d. Service Revenue – Cost of Goods Purchased = gross profit
Identify which one of the following formula is used to calculate the net income of the service companies in an accounting period? a.Net Purchases – Cost of goods sold b.Net Sales – Cost of goods sold c.Services Revenue – Operational and Administrative Expenses d.Operational and Administrative Expenses – Service Revenue
What document signals that a company should record thepurchase of goods on account?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice