Superior Harcwood Company distributes hardwood products to smallfurniture manufa

Question

Superior Harcwood Company distributes hardwood products to smallfurniture manufacturers. The edjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 2019. S23.48 489 11,180 89,809 Cash Petty Cash Fund Notes Receivable, due 2026 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Warehouse Equipment Accumulated Depreciation-Warehouse Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Office Equipment Accumulated Depreciation-Office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payabie, Long-ters Charles Ronie, Capital (3an. 1) Charles Ronie, Drawing $ 5,308 227,080 2,790 1,350 8,180 39,880 171,080 49,880 33,580 15, 300 47,580 18,200 21,500 9,908 19,500 38,300 510 57,500 13,500 417,560 126,300 Prof 2Next 9, to search

Explanation / Answer

Answer 1. Superior Hardwood Company Income Statement For the Month Ended Dec 31, 2019 Sales Revenue Sales      1,671,000.00 Less: Sales Return & Allowances            17,500.00 Net Sales 1,653,500.00 Less: Cost of Goods Sold Merchandise Inventory, Beginning          237,000.00 Purchases        760,000.00 Freight In          13,100.00 Delivered Cost of Purchases        773,100.00 Less: Purchase Returns & Allowances            7,740.00 Less: Purchase Discounts          10,460.00 Net Delivered Cost of Purchases          754,900.00 Goods Available For Sale          991,900.00 Less: Merchandise Inventory, Ending          227,000.00 Cost of Goods Sold       764,900.00 Gross Margin       888,600.00 Warehouse Expenses Warehouse Wages Expenses        192,600.00 Warehouse Supplies Expenses            6,400.00 Depreciation Exp. - Warehouse Equipment            5,100.00 Total Warehouse Expense          204,100.00 Selling Expenses Salaries Expenses - Sales        262,200.00 Travel & Entertainment Exp.          20,800.00 Delivery Wages Expenses          59,630.00 Depreciation Exp. - Delivery Equipment            9,100.00 Total Selling Expenses          351,730.00 General & Administrative Expenses Salaries Expenses - Office          69,900.00 Office Supplies Expenses            3,300.00 Insurance Expenses            5,500.00 Utilities Expenses            8,590.00 Telephone Expenses            5,820.00 Payroll Taxes Expenses          55,500.00 Property Taxes Expenses            4,900.00 Uncollectible Account Expenses            5,100.00 Depreciation Expense - Building            8,300.00 Depreciation Expense - Office Equipment            3,300.00 Total General & Administrative Expenses          170,210.00 Total Operating Expenses       726,040.00 Net Operating Income       162,560.00 Other Income Interest Revenue            1,510.00 Other Expenses Interest Expense            7,500.00 Net Income (Loss)       156,570.00 Answer 2. SUPERIOR HARDWOOD COMPANY Statement of Owners' Equity For the Year Ended Dec 31, 2019 Charles Ronie, Capital - Jan 1, 2019          417,560.00 Net Income (Loss)        156,570.00 Less: Chales Ronie, Drawings     (126,300.00) Increase in Capital            30,270.00 Vincent Arroyo, Capital, Ending          447,830.00 Answer 3. Superior Hardwood Company Balance Sheet As of Dec 31, 2019 Assets Current Assets Cash            23,400.00 Petty Cash Fund                  400.00 Notes Receivable due 2020            11,100.00 Accounts Receivable          89,000.00 Allowance for Doubtful Accounts          (5,300.00)            83,700.00 Merchandise Inventory          227,000.00 Warehouse Supplies               2,790.00 Office Supplies               1,350.00 Prepaid Insurance               8,100.00 Total Current Assets       357,840.00 Property, Plant & Equipment Land            39,000.00 Building        171,000.00 Accumulated Depreciation - Building        (49,800.00)          121,200.00 Warehouse Equipment          33,500.00 Accumulated Depreciation - Warehouse Equip.        (15,300.00)            18,200.00 Delivery Equipment          47,500.00 Accumulated Depreciation - Delivery Equip.        (18,200.00)            29,300.00 Office Equipment          21,500.00 Accumulated Depreciation - Office Equip.          (9,900.00)            11,600.00 Total Property, Plant & Equipment       219,300.00 Total Assets       577,140.00 Liabilities & Owners' Equity Liabilities Current Liabilities Notes Payable due 2020            19,500.00 Accounts Payable            38,300.00 Interest Payable                  510.00 Total Current Liabilities         58,310.00 Long Term Liabilities Mortgage Payable            57,500.00 Loans Payable - Long Term            13,500.00 Total Long Term Liabilities         71,000.00 Total Liabilities       129,310.00 Owners' Equity Vincent Arroyo, Capital          447,830.00 Total Owners' Equity       447,830.00 Total Laibilities & Owners' Equity       577,140.00 Answer 4. Current ratio = Current Assets / Current Liabilities Current ratio = $357,840 / $58,310 Current ratio = 6.14 : 1 (Approx.)

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