) Using the following information for Campbell Enterprises, prepare an annual: M
ID: 2539673 • Letter: #
Question
) Using the following information for Campbell Enterprises, prepare an annual:
Multiple-step income statement
Retained earnings statement
Classified balance sheet (7 points)
Campbell Enterprises, Inc.
Adjusted Trial Balance
December 31, 2016
Debit Credit
Cash 4,000
Accounts Receivable 15,000
Inventory 30,000
Prepaid Insurance 4,000
Supplies 3,000
Long-term Investment in Stock 6,000
Land 20,000
Buildings 120,000
Accumulated Depreciation—
Buildings 20,000
Patents 10,000
Accounts Payable 10,000
Unearned Revenue 2,000
Bonds Payable (due in 2023) 20,000
Common Stock 80,000
Retained Earnings 44,000
Dividends 30,000
Sales Revenue 305,000
Interest Revenue 5,000
Sales Discounts 6,000
Sales Returns & Allowances 8,000
Cost of Goods Sold 188,000
Salaries and Wages Expense 21,000
Depreciation Expense 10,000
Utilities Expense 5,000
Insurance Expense 3,000
Supplies Expense 2,000
Interest Expense 1,000
486,000 486,000
Campbell Enterprises, Inc.
Income Statement
Campbell Enterprises, Inc.
Retained Earnings Statement
Campbell Enterprises, Inc.
Balance Sheet
b) Using the above information, compute Campbell’s gross profit rate. Please show the details of
your computation: (1 point)
Gross profit rate ____________________________________________
Campbell Enterprises, Inc.
Income Statement
Explanation / Answer
Campbell Enterprises Inc. Multi Step Income Statement For the Year Ended December 31st 2016 Net Sales=($305000-$6000-$8000) $ 291,000.00 Cost of goods sold $ 188,000.00 Gross Profit $ 103,000.00 Operating Expenses Administerative & Selling Expenses Salaries & Wages $ 21,000.00 Supplies Expenses $ 2,000.00 Depreciation Expense $ 10,000.00 Utilties Expenses $ 5,000.00 Insurance $ 3,000.00 Total Operting Expenses $ 41,000.00 Operating Income $ 62,000.00 Non Operating & Others Interest Revenue $ 5,000.00 Dividend Paid $ (30,000.00) Interest Expense $ (1,000.00) $ (26,000.00) Net Income befor tax $ 36,000.00 Campbell Enterprises Inc. Balane sheet at December 31st,2016 Assets Current Assets Cash $ 4,000.00 Accounts receivable net $ 15,000.00 Mercendise Inventory $ 30,000.00 Prepaid Insurane $ 4,000.00 Supplies $ 3,000.00 Long Term Investment in Stock $ 6,000.00 Land $ 20,000.00 Building , Net(Cost-Accumulated Depreciation) $ 100,000.00 Patent $ 10,000.00 Total Assets $ 192,000.00 Liabilites & Shareholder's Equity Accounts Payable $ 10,000.00 Unearned Revenue $ 2,000.00 Bonds Payable $ 20,000.00 Common stock $ 80,000.00 Retained Earnings=($44000+$36000) $ 80,000.00 Total Liabilities and Net assets $ 192,000.00 Gross Profit Rate=Gross Profit/Net Sales Gross Profit=Net sales-cost of goods sold $ 103,000.00 Sales $ 291,000.00 Gross Profit Rate= 35.40% Net Sales=Sales-Sales discount-Sales return & allowances=($305000-$6000-$8000) $ 291,000.00
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