COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 13, Problem 3PA
Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem.
INSTRUCTIONS
- 1. Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
- 2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
- 3. Prepare a classified
balance sheet as of December 31, 2019.
Analyze: What is the inventory turnover for Artisan Wines?
Recording adjustments and completing the worksheet.
The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.
The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.
INSTRUCTIONS:
- 1. Prepare the
Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. - 2. Enter the adjustments below in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter.
- 3. Complete the worksheet.
ADJUSTMENTS:
a.–b. Merchandise inventory at December 31, 2019, was counted and determined to be $13,000.
c. The amount recorded as prepaid advertising represents $480 paid on September 1, 2019, for 12 months of advertising.
d. The amount of supplies on hand at December 31 was $160.
e.
f. Depreciation on office equipment was $1,125 for 2019.
g. Unearned seminar fees represent $6,000 received on November 1, 2019, for six seminars. At December 31, four of these seminars had been conducted.
h. Wages owed but not paid at December 31 were $500.
i. On December 31, 2019, the firm owed the employer’s social security tax ($31.00) and Medicare tax ($7.25).
j. The note payable bears interest at 6 percent per annum. One month’s interest is owed at December 31, 2019.
Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 2019?
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The following adjusted trial balance for Bell Serving was prepared at the end of the fiscal year, December 31, 2020:
Required:
Prepare a classified multiple-step income statement that would be used by the business owner
Prepare a multiple step- income statement that would be used by external users
Prepare a single- step income statement that would be provided to decision makers outside the company.
If you were a decision maker external to Bell Servicing, which income statement format would you prefer and why, if you had a choice. Which income statement format could you expect as an external user? Why?
picture 3 is the data entry for the whole exercise
Prepare Multi-step Income Statement
As shown in the picture, use the information obtained from the Trial Balance of Andros Dry Goods for the month ended December 31, 2019 to prepare a multi-step income statement and answer the questions that follow.
Chapter 13 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 13 - Why are financial statements prepared in...Ch. 13 - What is the distinction between current...Ch. 13 - Prob. 1.3SRQCh. 13 - Which of the following is not a current asset? a....Ch. 13 - How should purchases returns and allowances be...Ch. 13 - Assume that a business listed the Freight In...Ch. 13 - Why do adjusting entries need detailed...Ch. 13 - Which adjusting entries should be reversed?Ch. 13 - Prob. 2.3SRQCh. 13 - A reversing entry is made for an end-of-period...
Ch. 13 - Prob. 2.5SRECh. 13 - At the end of the previous accounting period, an...Ch. 13 - Prob. 1CSRCh. 13 - Prob. 2CSRCh. 13 - Prob. 3CSRCh. 13 - Prob. 4CSRCh. 13 - Which of the following should have a debit balance...Ch. 13 - Prob. 6CSRCh. 13 - Prob. 7CSRCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - What are operating expenses?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Gomez Company had a current ratio of 2.0 in 2018...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - The worksheet of Bridgets Office Supplies contains...Ch. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - The Adjusted Trial Balance section of the...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Superior Hardwood Company distributes hardwood...Ch. 13 - Good to Go Auto Products distributes automobile...Ch. 13 - Obtain all data necessary from the worksheet...Ch. 13 - Obtain all data that is necessary from the...Ch. 13 - Prob. 5PACh. 13 - ComputerGeeks.com is a retail store that sells...Ch. 13 - Hog Wild is a retail firm that sells motorcycles,...Ch. 13 - Prob. 3PBCh. 13 - Prob. 4PBCh. 13 - The data below concerns adjustments to be made at...Ch. 13 - Programs Plus is a retail firm that sells computer...Ch. 13 - Teagan Fitzgerald is the owner of Newport Jewelry,...Ch. 13 - Prob. 1MFCh. 13 - Spectrum Company had an increase in sales and net...Ch. 13 - Prob. 3MFCh. 13 - Prob. 4MFCh. 13 - Prob. 5MFCh. 13 - Prob. 6MFCh. 13 - Prob. 7MFCh. 13 - It is standard accounting procedures, or GAAP, to...Ch. 13 - McCormick Company, Incorporated, is a global...Ch. 13 - The Fashion Rack is a retail merchandising...
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