Account Title De bits Cre dits Accounts payable 90,000 Accounts receivable 170,0
ID: 2504855 • Letter: A
Question
Account Title
De bits
Cre dits
Accounts payable
90,000
Accounts receivable
170,000
Accumulated depreciation - equipment
260,000
Capital stock
490,000
Cash
26,000
Cost of goods sold
480,000
Depreciation expense
60,000
Equipment
700,000
Interest expense
4,000
Inventory
150,000
Note payable (due in six months)
60,000
Rent expense
30,000
Retained earnings
62,000
Salaries payable
8,000
Sales revenue
770,000
Salaries expense
120,000
Totals
1,740,000
1,740,000
Required:
Assuming no income taxes, compute the following:
Account Title
De bits
Cre dits
Accounts payable
90,000
Accounts receivable
170,000
Accumulated depreciation - equipment
260,000
Capital stock
490,000
Cash
26,000
Cost of goods sold
480,000
Depreciation expense
60,000
Equipment
700,000
Interest expense
4,000
Inventory
150,000
Note payable (due in six months)
60,000
Rent expense
30,000
Retained earnings
62,000
Salaries payable
8,000
Sales revenue
770,000
Salaries expense
120,000
Totals
1,740,000
1,740,000
Explanation / Answer
1] 2013 net income (or loss).
Particulars
Amount($)
Sales revenue
770,000
Less:- Cost of goods sold
480,000
Gross profit
290000
Less:- Other operating expenses
a) Depreciation expense
(60000)
b) Interest expense
(4,000)
c) Rent expense
(30,000)
d) Salaries expense
(120,000)
Net Income
76000
2] 12/31/13 total current assets.
Particulars
Amount($)
Accounts receivable
170,000
Cash
26,000
Inventory
150,000
Total Current Assets
346000
3] 12/31/13 total current liabilities.
Particulars
Amount($)
Accounts payable
90,000
Note payable (due in six months)
60,000
Salaries payable
8,000
Total Current Liabilities
158000
4] 12/31/13 total shareholders' equity.
Particulars
Amount($)
Capital stock
490,000
Retained earnings
62000
Add:- Net income for the year
76000
138000
Total Shareholder
1] 2013 net income (or loss).
Particulars
Amount($)
Sales revenue
770,000
Less:- Cost of goods sold
480,000
Gross profit
290000
Less:- Other operating expenses
a) Depreciation expense
(60000)
b) Interest expense
(4,000)
c) Rent expense
(30,000)
d) Salaries expense
(120,000)
Net Income
76000
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