Exercise#2 10 points The adjusted trial balance accounts: AdvertisingExpense $ 15,000 Cost of Goods Sold 347,000 Depreciation Expense 3,500 Freight-out 2,000 Income Tax Expense 21,700 Interest Expense 19,000 Interest Revenue 25,000 Merchandise Inventory 35,750 Prepaid Rent 4,500 Sales 575,000 Sales Discounts 9,500 Sales Returns and Allowances 50,000 Store Salaries Expense 74,000 Unearned Revenue 8,000 Utilities Expense 18,000 Prepare a multiple-step income statement,in proper form, for the year ended December 31, 2014 forCosey Inc. Also known as a classifiedincome statement
| Exercise#2 | ||||||
| 10 points | ||||||
| The adjusted trial balance accounts: | ||||||
| AdvertisingExpense $ 15,000 | ||||||
| Cost of Goods Sold | 347,000 | |||||
| Depreciation Expense | 3,500 | |||||
| Freight-out | 2,000 | |||||
| Income Tax Expense | 21,700 | |||||
| Interest Expense | 19,000 | |||||
| Interest Revenue | 25,000 | |||||
| Merchandise Inventory | 35,750 | |||||
| Prepaid Rent | 4,500 | |||||
| Sales | 575,000 | |||||
| Sales Discounts | 9,500 | |||||
| Sales Returns and Allowances | 50,000 | |||||
| Store Salaries Expense | 74,000 | |||||
| Unearned Revenue | 8,000 | |||||
| Utilities Expense | 18,000 | |||||
| Prepare a multiple-step income statement,in proper form, for the year ended December 31, 2014 forCosey Inc. | ||||||
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Related questions
| debit | credit | |
| Cash | 54,339 | |
| Investment Securities--AFS | 72,000 | |
| ACCRUED INTEREST RECEIVABLE | 1000 | |
| Accounts Receivable | 48,607 | |
| Allowance for Doubtful Accounts | 3,022 | |
| Allowance for Sales Returns andAllowances | 972 | |
| Merchandise Inventory | 449,807 | |
| Prepaid Insurance | 7,434 | |
| Store Supplies | 2,700 | |
| Land | 285,820 | |
| Building | 476,895 | |
| Accumulated Depreciation: Building | 55,027 | |
| Office & Store Equipment | 163,941 | |
| Accumulated Depreciation: Office &Store Equipment | 54,763 | |
| Delivery Trucks | 198,545 | |
| Accumulated Depreciation: DeliveryTrucks | 41,260 | |
| Accounts Payable | 51,274 | |
| FICA Taxes Payable | 5,406 | |
| FEDERAL INCOME TAX WITHHOLDINGPAYABLE | 3,401 | |
| Unemployment Taxes Payable | 814 | |
| Union Dues Payable | 180 | |
| Salaries & Wages Payable | 37,085 | |
| accured utility payable | 506 | |
| Mortgage Payable | 200,000 | |
| Accrued Interest Payable | 667 | |
| Common Stock | 100,000 | |
| PIC in Excess of Par | 1,000,000 | |
| Retained Earnings | 85,937 | |
| Sales | 1,779,369 | |
| Sales Returns | 36,893 | |
| Sales Discounts | 12,027 | |
| INTEREST REVENUE | 1,000 | |
| Purchases | 0 | |
| Purchase Returns | 0 | |
| Purchase Discounts | 0 | |
| Freight In | 0 | |
| cost of goods sold | 1,157,524 | |
| Salaries & Wages Expense | 304,693 | 0 |
| Payroll Tax Expense | 41,573 | 0 |
| Advertising Expense | 11,874 | 0 |
| REPAIR EXPENSE | 1,700 | 0 |
| STORE SUPPLIES EXPENSE | 10,021 | 0 |
| Utilities Expense | 20,410 | 0 |
| INSURANCE EXPENSE | 6,034 | 0 |
| DEPRECIATION EXPENSE | 46,459 | 0 |
| DOUBTFUL ACCOUNTS EXPENSE | 928 | 0 |
| Interest Expense | 9,459 | 0 |
| Totals | 3,420,683 | 3,420,683 |
Prepare an income statement for 2016 (Multiple step format).
| Unadjusted Trial Balance | ||
|---|---|---|
| Cash | 7,400 | |
| Merchandise inventory | 24,000 | |
| Store supplies | 9,700 | |
| Prepaid insurance | 6,600 | |
| Store equipment | 81,800 | |
| Accumulated depreciation-Store Equipment | 32,000 | |
| Accounts payable | 18,000 | |
| Common Stock | 3,000 | |
| Retained earnings | 40,000 | |
| Dividends | 2,000 | |
| Sales | 227,100 | |
| Sales Discounts | 1,000 | |
| Sales returns and allowances | 5,000 | |
| Cost of goods sold | 75,800 | |
| Depreciation expense-Store equipment | 0 | |
| Salariers expense | 63,000 | |
Insurance expense | 0 | |
| Rent Expense | 26,000 | |
| Store supplies expense | 0 | |
| Advertising expense | 17,800 | |
| Totals | 320,100 | 320,100 |
1. Prepare adjusted journal entries to reflect each of thefollowing.
a. Store supplies still available at fiscal year-end amount to3,700.
b. Expired insurance, an administrative expense, for th fiscalyear is 2,800
c. Depreciation expense on store equipment, a selling expense,is 3,000 for a fiscal year.
d. To estimate shrinkage, a physical count of ending merchandiseinventory is taken. It shows 21,300 of inventory is still availableat fiscal year end.
2. Prepare a multiple step indome statement for fiscal year2013. Check in book says Gross profit should be142,600
3. Prepare a single- step income statement of fiscal year 2013.Check in book Says Total expenses, 197,100 and Net Income,24,000
4. Compute the current ratio, acid- test ratio, and gross marginratio as of October 31, 2013.
