College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 15, Problem 8SPA
INCOME STATEMENT. STATEMENT OF OWNER S EQUITY, AND
REQUIRED
- 1. Prepare a multiple-step income statement.
- 2. Prepare a statement of owner’s equity.
- 3. Prepare a balance sheet.
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Income Statement, Statement of Owner's Equity, and Balance Sheet
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity
3. Prepare a balance sheet.
Paulson's Pet Store completed the work sheet below for the year ended December 31, 20--. Owner's equity as of January 1, 20--, was $21,900. The current portion of Mortgage Payable is $500.
Paulson's Pet StoreWork SheetFor Year Ended December 31, 20 --
TRIAL BALANCE
ADJUSTMENTS
ADJUSTED TRIAL BALANCE
INCOME STATEMENT
BALANCE SHEET
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
Cash
15,860
15,860
15,860
Accounts Receivable
2,340
2,340
2,340
Merchandise Inventory
15,000
(b) 16,500
(a) 15,000
16,500
16,500
Supplies
800
(c) 200
600
600
Prepaid Insurance
600
(d) 150
450
450
Equipment
5,000
5,000
5,000
Accum. Depr.—Equipment
450
(e) 450
900
900
Accounts Payable
4,890…
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…
Assessing Financial Statement Effects of Transactions and AdjustmentsSelected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted.
Prepaid Insurance
$6,660
Supplies
1,930
Office Equipment
5,952
Unearned Rent Revenue
5,250
Salaries Expense
3,100
Rent Revenue
15,000
Piotroski Properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31 using the financial statements effect template.(a) Prepaid insurance represents a three-year premium paid on January 1.(b) Supplies of $950 were still available on January 31.(c) Office equipment is expected to last eight years (or 96 months).(d) Earlier this month, on January 1, Piotroski collected $5,250 for six months' rent in advance from a tenant renting space for $875 per month.(e) Salaries of $490 have been earned by employees but yet not recorded as of January 31.…
Chapter 15 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TFCh. 15 - Prob. 3TFCh. 15 - Prob. 4TFCh. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MCCh. 15 - Prob. 2MCCh. 15 - Prob. 3MCCh. 15 - Prob. 4MCCh. 15 - Prob. 5MC
Ch. 15 - Prob. 1CECh. 15 - Prob. 2CECh. 15 - 1. L01 Prepare a multiple-step income statement...Ch. 15 - Prob. 4CECh. 15 - Prob. 5CECh. 15 - Prob. 6CECh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Describe how to calculate the following ratios (a)...Ch. 15 - Where is the information obtained that is needed...Ch. 15 - Explain the function of each of the four closing...Ch. 15 - What is the purpose of a post-closing trial...Ch. 15 - What is the primary purpose of reversing entries?Ch. 15 - What is the customary date for reversing entries?Ch. 15 - What adjusting entries should be reversed?Ch. 15 - REVENUE SECTION. MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial statements...Ch. 15 - CLOSING ENTRIES From the work sheet on page 600,...Ch. 15 - REVERSING ENTRIES From the work sheet used in...Ch. 15 - Prob. 7SEACh. 15 - INCOME STATEMENT. STATEMENT OF OWNER S EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - WORK SHEET, ADJUSTING, CLOSING, AND REVERSING...Ch. 15 - REVENUE SECTION, MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial...Ch. 15 - CLOSING ENTRIES From the work sheet on page 607...Ch. 15 - Prob. 6SEBCh. 15 - ADJUSTING, CLOSING, AND REVERSING ENTRIES Prepare...Ch. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - Prob. 10SPBCh. 15 - Prob. 1MYWCh. 15 - Dominique Fouque owns and operates Dominiques Doll...Ch. 15 - Prob. 1CP
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INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND BALANCE SHEET Backlund Farm Supply completed the work sheet on page 609 for the year ended December 31, 20--. Owners equity as of January 1, 20--, was 50.000. The current portion of Mortgage Payable is 1,000. REQUIRED 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner s equity. 3. Prepare a balance sheet.
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The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
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Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are presented in Problem 6-5A. Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 11. 2. Prepare a statement of owners equity. 3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is 50,000. 4. Prepare closing entries as of May 31, 2016.
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Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and tally ending balance for the account. Assume an Accounts Payable beginning balance of $5,000. A. February 2, purchased an asset, merchandise inventory, on account, $30,000 B. March 10, paid creditor for part of February purchase, $12,000
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INCOME STATEMENT, STATEMENT OF OWNER’S EQUITY, AND BALANCE SHEET Paulson’s Pet Store completed the Adjusted Trial Balance on page 600 for the year ended December 31, 20--.Owner’s equity as of January 1, 20--, was $504,320. The current portion of Note Payable is $2,000.REQUIRED1. Prepare a multiple-step income statement.2. Prepare a statement of owner’s equity.3. Prepare a balance sheet.
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INCOME STATEMENT, STATEMENT OF OWNER'S EQUITY, ANDBALANCE SHEET Paulson's Pet Store completed the Adjusted TrialBalance on page 600 for the year ended December 31, 20--. Owner'sequity as of January 1, 20--, was $504,320. The current portion of NotePayable is $2,000.
REQUIRED1. Prepare a multiple-step income statement.2. Prepare a statement of owner's equity.3. Prepare a balance sheet.
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Grouper Company has the following selected accounts after posting adjusting entries:
Accounts Payable
$57,040
Notes Payable, 3-month
36,800
Accumulated Depreciation—Equipment
12,880
Notes Payable, 5-year, 6%
73,600
Payroll Tax Expense
3,680
Interest Payable
2,760
Mortgage Payable
110,400
Sales Taxes Payable
34,960
1 .Prepare the current liability section of Grouper Company's balance sheet, assuming $14,720 of the mortgage is payable next year. (For Notes Payable enter the account name only and do not provide any additional descriptive information e.g. due 2017, 5 Months.)
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From the following list of accounts, prepare an income statement, statement of owner's equity, and balance sheet for the year ended or at December 31, 20--, for Milner's Star Express Cleaning Service.
Cash
$ 2,026
Fees Earned
13,835
Accounts Payable
7,530
D. Milner, Capital January 1, 20--
6,000
D. Milner, Drawing
1,750
Utilities Expense
153
Prepaid Insurance
1,216
Rent Expense
1,200
Accounts Receivable
4,080
Equipment
15,290
Wages Expense
1,650
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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.
A.
Opened a business bank account with a deposit of $28,000 from personal funds.
B.
Paid rent on office and equipment for the month, $3,600.
C.
Paid automobile expenses (including rental charge) for the month, $1,300, and miscellaneous expenses, $700.
D.
Purchased office supplies on account, $1,250.
E.
Earned sales commissions, receiving cash, $18,400.
F.
Paid creditor on account, $750.
G.
Paid office salaries, $3,000.
H.
Withdrew cash for personal use, $3,300.
I.
Determined that the cost of supplies on hand was $500; therefore, the cost of supplies used was $750.
1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to…
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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.
A.
Opened a business bank account with a deposit of $28,000 from personal funds.
B.
Paid rent on office and equipment for the month, $3,600.
C.
Paid automobile expenses (including rental charge) for the month, $1,300, and miscellaneous expenses, $700.
D.
Purchased office supplies on account, $1,250.
E.
Earned sales commissions, receiving cash, $18,400.
F.
Paid creditor on account, $750.
G.
Paid office salaries, $3,000.
H.
Withdrew cash for personal use, $3,300.
I.
Determined that the cost of supplies on hand was $500; therefore, the cost of supplies used was $750.
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On April 1, 2019, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:a. Opened a business bank account with a deposit of $24,000 from personal funds.b. Paid rent on office and equipment for the month, $3,600.c. Paid automobile expenses (including rental charge) for the month, $1,350, and miscellaneous expenses, $600.d. Purchased office supplies on account, $1,200.e. Earned sales commissions (revenue) from selling real estate, receiving cash, $19,800.f. Paid creditor on account, $750.g. Paid office salaries, $2,500.h. Withdrew cash for personal use, $3,500.i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.
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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.
A.
Opened a business bank account with a deposit of $24,000 from personal funds.
B.
Paid rent on office and equipment for the month, $3,700.
C.
Paid automobile expenses (including rental charge) for the month, $1,450, and miscellaneous expenses, $600.
D.
Purchased office supplies on account, $1,250.
E.
Earned sales commissions, receiving cash, $22,600.
F.
Paid creditor on account, $700.
G.
Paid office salaries, $3,300.
H.
Withdrew cash for personal use, $3,900.
I.
Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $900.
Required:
1.
Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the…
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