Determine to which subgroup each account belongs. Arrange the accounts in proper

Question

Determine to which subgroup each account belongs.

Arrange the accounts in proper order and functionality.

Prepare a comprehensive balance sheet in good form.

Prepare a single-step income statement in good form.

500,000

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Accounts Payable 197,532 Account Receivable 165,824 Accrued Interest on Notes Payable 500 Accrued Liabilities 9,500 Accumulated Depreciations 341,200 Additional Paid-In Capital 37,500 Administrative Expenses 350,000 Allowance for Doubtful Accounts 1,850 Building 975,800 Cash 42,485 Common Stock 400,000 Copyrights 105,000 Cost of Goods Sold 1,000,000 Customer Deposits (expected to be paid next year) 420 Deposits With Vendors (based on a long-term purchase contract) 50,000 Depreciation Expense (40% Selling, 60% Administrative) 100,000 Dividend Income 30,000 Goodwill 100,000 Income Tax Expense 82,250 Income Taxes Payable 62,520 Interest Revenue 25,000 Inventories 499,493 Investments in Warren Co. 87,500 Land 125,000 Mortgage Payable ($1,500 per month) 308,000 Notes Payable to Banks 50,000 Notes Receivable (due next year) 23,000 Patents 125,000 Preferred Stock, 7% 300,000 Prepaid Expenses 16,252 Rental Income 50,000 Retained Earnings 162,582 Selling Expenses 300,000 Salaries Payable 52,000 Sales Discounts 120,000 Sales Revenue 2,000,000 Securities (available for sale) at Fair Market Value 28,250 Trademarks 80,000 Twenty-year, 12% Bonds, Due 1/1/2015

500,000

May I have some help with this assignment please? Thank you.

Explanation / Answer

Solution:

ISingle-Step Income Statement For the month ended December 31, 2015 Revenues: Sales Revenues 2,000,000 Interest Revenues 25,000 Gain on Sale of Investments 120,000 Rental Income 50,000 Retained Earnings 162,582 Sales Discounts 120,000 Total Revenues $2,477,582 Expenses: Cost of Goods Sold 1,000,000 Depreciation Expense 100,000 Advertising Expense 1,000 Income Tax Expense 82,250 Selling Expenses 300,000 Prepaid Expenses 16,252 Administrative Expenses 350,000 Salaries Payable 52,000 Allowance for Doubtful Accounts 1,850 Total Expenses -1,903,352 Net Income $574,230 Balance Sheet as of Dec 31, 2015 Liabilities $$ Assets $$ Current Liabilities Current Assets Accounts Payable 197,532 Cash 42,485 Accrued Interest on Notes Payable 500 Account Receivable 165,824 Accrued Liabilities 9,500 Inventories 499,493 Additional Paid-In Capital 37,500 Investments in Warren Co. 87,500 Income Taxes Payable 62,520 Securities (available for sale) at Fair Market Value 28,250 Preferred Stock, 7% 300,000 Notes Receivable (due next year) 23,000 Deposits With Vendors (based on a long-term purchase contract) 50,000 Patents 125,000 Net Income $574,230 Trademarks 80,000 Retained Earnings 162,582 Prepaid Expenses 16,252 Salaries Payable 52,000 Total Current Assets $1,067,804 Total Current Liabilities $1,446,364 Fixed Assets Long-Term Liabilities $ Building 975,800 Notes Payable to Banks 50,000 Copyrights 105,000 Mortgage Payable ($1,500 per month) 308,000 Land 125,000 Notes Payable to Banks 50,000 Goodwill 100,000 Dividend Income 30,000 Prepaid 10,760 Twenty-year, 12% Bonds, Due 1/1/2015 500,000 Total Fixed Assets 1,316,560 Total Long-Term Liabilities $938,000 Total Liabilities $2,384,364 Total Assests $2,384,364

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