asignment 0 Superior Hardwood Company distributes hardwood products to small fur

Question

asignment 0 Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted tria balance data gven below is from the firm's worksheet for the year ended December 31, 2019 $22,400 Cash Petty Cosh Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Kerchandise Invento Warehouse Supplies office Supplies Prepaid Insurance Land 10,100 80,000 $4,300 217.000 2,690 1,250 5,100 29,000 161,000 EBuilding Accunulated Depreciation- Building Warehouse Equipment Accumulated Depreciationm Warehouse Equipment Delivery Equipment Accumulated Depreciation" Delivery Equipment office Equipment Accunulated Depreciation Office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Hort gage Payable 43,800 28 500 12, 300 42,500 16,200 16.500 6,900 18,500 37,300 410 52,500 8,500 ans Payable, Long-term Charles Ronie, Capital (Jan. 306,760 Charles Ronie, Draving Income Summary 125 30b 22 006 217,000 L, 699,000 sales Returns and Allowances Interest Income Purchases Freight in 16.500 1 410 12 100 rchas A1Lowanges turchases Discounts 6,140 9 460 Warehouze Supplien EPenn DepreciaFOR pes Warehouse Equipment Salarics Expns Sales Teavel and Enterta nmant 182 600 s 400 4 100 252 200 19.80 H 630 8 100 De liiverY Wager Expenise Depreciation Expense Deil vary Equigment office Supplies Expens

Explanation / Answer

SUPERIOR HARDWOOD COMPANY Income Statement Year Ended December 31, 2019 Operating Revenue Sales                                     1,699,000 Less Sales Returns and Allowance                    16,500 Net Sales                                  1,682,500 Cost of Goods Sold Merchandise Inventory, January 1, 2019       227,000 Purchases                                 750,000 Freight In                                     12,100 Delivered Cost of Purchases                    762,100 Less Purchase Returns and Allowance             6,740 Purchase Discounts                           9,460    16,200 Net Delivered Cost of Purchases               745,900 Total Merchandise Available for Sale            972,900 Less Merchandise Inventory, Dec 31, 2019       217,000 Cost of Goods Sold                              755,900 Gross Profit on Sales                               926,600 Operating Expenses Warehouse Expenses Warehouse Wages Expense     182,600 Warehouse Supplies Expense         5,400 Depreciation Expense—Warehouse Equipment      4,100 Total Warehouse Expense 192,100 Selling Expenses Salaries Expense—Sales                   252,200 Travel and Entertainment Expense                  19,800 Delivery Wages Expense                 58,630 Depreciation Expense—Delivery Equipment      8,100 Total Selling Expense                     338,730 General and Administrative Expenses Salaries Expense—Office           68,900 Office Supplies Expense             2,300 Insurance Expense                4,500 Utilities Expense                  7,590 Telephone Expense                4,820 Payroll Taxes Expense            50,500 Property Taxes Expense            3,900 Uncollectible Accounts Expense      4,100 Depreciation Expense—Building      7,300 Depreciation Expense—Office Equipment      2,300 Total General and Admin Expenses         156,210     687,040 Total Operating Expenses                         239,560 Income from Operations                        Other Income Interest Income                             1,410 Other Expense Interest Expense                                 6,500         5,090 Net Nonoperating Expenses                         234,470 Net Income for Year                           SUPERIOR HARDWOOD COMPANY Statement of Owner’s Equity December 31, 2019 Charles Ronie, Capital, January 1, 2019   306,760 Net Income for Year                     234,470 Less Withdrawals for Year                125,300 Increase in Capital                      109,170 Charles Ronie, Capital, December 31, 2019 415,930 SUPERIOR HARDWOOD COMPANY Balance Sheet December 31, 2019 Assets Current Assets Cash                                  22,400 Petty Cash Fund                                600 Notes Receivable     10,100 Accounts Receivable                     80,000 Less Allowance for Doubtful Accounts          4,300     75,700 Merchandise Inventory                217,000 Prepaid Expenses Warehouse Supplies                  2,690 Office Supplies                      1,250 Prepaid Insurance                      5,100       9,040 Total Current Assets                  334,840 Plant and Equipment Land     29,000 Building 161,000 Less Accumulated Depreciation            43,800 117,200 Warehouse Equipment                        28,500 Less Accumulated Depreciation            12,300     16,200 Delivery Equipment                        42,500 Less Accumulated Depreciation            16,200     26,300 Office Equipment                        16,500 Less Accumulated Depreciation              6,900       9,600 Total Plant and Equipment             198,300 Total Assets                          533,140 Liabilities and Owner’s Equity Current Liabilities Notes Payable                          18,500 Accounts Payable                       37,300 Interest Payable                              410 Total Current Liabilities                   56,210 Long Term Liabilities Loans Payable—Long-Term                                8,500 Mortgage Payable                                      52,500 Total Long term liabilities     61,000 Owner’s Equity Charles Ronie, Capital                  415,930 Total Liabilities and Owner’s Equity        533,140 Current ratio = Current assets / Current liabilities 334840/56210                                                                                            5.96

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