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Smart Corporation ADJUSTED TRIAL BALANCE December 31, 2019 Debits Credits Sales 1,437,750 Notes Receivable Investments (short Term) Accounts Payable Accumulated Depreciation Equipment Sales Discounts Sales Returns 120,000 132,750 76,500 46,500 15,750 26,250 Purchase Discounts Cash Accounts Receivable Rent Revenue 12,000 285,000 193,500 21,000 Retained Earnings Salaries Payable Notes Payable Common Stock, $15 par Income Tax Expense Cash Dividends Declared 360,000 33,000 112,500 450,000 102,000 105,000 Allowance for Doubtful Accounts 9,750 Supplies on Hand Freight-In 16,500 24,000 Short term Investment 75,000 Freight-out Sales commission Correction for understatement of prior period net income (inventory error) Other Operating Expenses (30% Selling, 70% Administrative) Land Provision for Bad and Doubtful Account 22,500 318,000 75,000 171,000 97,500 51,000 Equipment Merchandise Inventory Building Purchases Dividend Income 195,000 118,500 156,000 750,000 37,500 Loss on Sale of Investment 19,500 Interest Revenue 13,500 Interest Expense Bonds Payable Gain on Sale of Land Accumulated Depreciation Building Accumulated Depreciation Land Totals 18,750 150,000 36,750 30,000 9,750 2,962,500 2,962,500

Smart Corporation ADJUSTED TRIAL BALANCE December 31, 2019 Debits Credits Sales 1,437,750 Notes Receivable Investments (short Term) Accounts Payable Accumulated Depreciation Equipment Sales Discounts Sales Returns 120,000 132,750 76,500 46,500 15,750 26,250 Purchase Discounts Cash Accounts Receivable Rent Revenue 12,000 285,000 193,500 21,000 Retained Earnings Salaries Payable Notes Payable Common Stock, $15 par Income Tax Expense Cash Dividends Declared 360,000 33,000 112,500 450,000 102,000 105,000 Allowance for Doubtful Accounts 9,750 Supplies on Hand Freight-In 16,500 24,000 Short term Investment 75,000 Freight-out Sales commission Correction for understatement of prior period net income (inventory error) Other Operating Expenses (30% Selling, 70% Administrative) Land Provision for Bad and Doubtful Account 22,500 318,000 75,000 171,000 97,500 51,000 Equipment Merchandise Inventory Building Purchases Dividend Income 195,000 118,500 156,000 750,000 37,500 Loss on Sale of Investment 19,500 Interest Revenue 13,500 Interest Expense Bonds Payable Gain on Sale of Land Accumulated Depreciation Building Accumulated Depreciation Land Totals 18,750 150,000 36,750 30,000 9,750 2,962,500 2,962,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The company uses the periodic inventory system.  A physical count of inventory on December 31 resulted in an inventory amount of $50,000.

Instructions

1. Prepare an income statement for the year ending December 31, 2019. Assume that twenty thousand shares of common stock were outstanding the entire year. 
a. using the Multi-Step form.  
b. using the Single-Step form.  
 
2. Prepare a retained earnings statement for the year ending December 31, 2019.
Smart Corporation ADJUSTED TRIAL BALANCE December 31, 2019 Debits Credits Sales 1,437,750 Notes Receivable Investments (short Term) Accounts Payable Accumulated Depreciation Equipment Sales Discounts Sales Returns 120,000 132,750 76,500 46,500 15,750 26,250 Purchase Discounts Cash Accounts Receivable Rent Revenue 12,000 285,000 193,500 21,000 Retained Earnings Salaries Payable Notes Payable Common Stock, $15 par Income Tax Expense Cash Dividends Declared 360,000 33,000 112,500 450,000 102,000 105,000 Allowance for Doubtful Accounts 9,750 Supplies on Hand Freight-In 16,500 24,000 Short term Investment 75,000 Freight-out Sales commission Correction for understatement of prior period net income (inventory error) Other Operating Expenses (30% Selling, 70% Administrative) Land Provision for Bad and Doubtful Account 22,500 318,000 75,000 171,000 97,500 51,000 Equipment Merchandise Inventory Building Purchases Dividend Income 195,000 118,500 156,000 750,000 37,500 Loss on Sale of Investment 19,500 Interest Revenue 13,500 Interest Expense Bonds Payable Gain on Sale of Land Accumulated Depreciation Building Accumulated Depreciation Land Totals 18,750 150,000 36,750 30,000 9,750 2,962,500 2,962,500
Transcribed Image Text:Smart Corporation ADJUSTED TRIAL BALANCE December 31, 2019 Debits Credits Sales 1,437,750 Notes Receivable Investments (short Term) Accounts Payable Accumulated Depreciation Equipment Sales Discounts Sales Returns 120,000 132,750 76,500 46,500 15,750 26,250 Purchase Discounts Cash Accounts Receivable Rent Revenue 12,000 285,000 193,500 21,000 Retained Earnings Salaries Payable Notes Payable Common Stock, $15 par Income Tax Expense Cash Dividends Declared 360,000 33,000 112,500 450,000 102,000 105,000 Allowance for Doubtful Accounts 9,750 Supplies on Hand Freight-In 16,500 24,000 Short term Investment 75,000 Freight-out Sales commission Correction for understatement of prior period net income (inventory error) Other Operating Expenses (30% Selling, 70% Administrative) Land Provision for Bad and Doubtful Account 22,500 318,000 75,000 171,000 97,500 51,000 Equipment Merchandise Inventory Building Purchases Dividend Income 195,000 118,500 156,000 750,000 37,500 Loss on Sale of Investment 19,500 Interest Revenue 13,500 Interest Expense Bonds Payable Gain on Sale of Land Accumulated Depreciation Building Accumulated Depreciation Land Totals 18,750 150,000 36,750 30,000 9,750 2,962,500 2,962,500
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