The following are the information for Chun Equipment Co. for 2018. (Hint: Some o

Question

The following are the information for Chun Equipment Co. for 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) $121,290 Interest receivable (short term) Salaries expense Common stock Notes receivable (short term) Allowance for doubtful accounts Accum Notes payable (long term) Salvage value of equipment Interest payable (short term) Uncollectible accounts expense Supplies Office equipment Interest revenue Sales revenue Dividends Rent expense 500 52,500 Beginning retained earnings 17,940 Operating expenses 51,195 87,930 (101,710) 13,690 53,600 20,270 162,250 62,640 30,570 12,780 55,690 179,695 112,030 6,880 Cash flow from investing activities ulated depreciation 33,600 Prepaid rent 125,530 Land 6,790 Cash 3,230 Inventory 13,950 Accounts payable 2,990 Interest expense 77,530 Salaries payable 6,230 Unearned revenue 501,940 Cost of goods sold 12,700 Accounts receivable 5,280 Required Prepare a multistep income statement and balance sheet for Chun Equipment Co. for 2018

Explanation / Answer

CHUN EQUIPMENT CO. Income Statement   Amount in $ Sales revenue -          5,01,940 Cost of goods sold     -1,79,695 Gross profit      3,22,245 Interest revenue                  6,230 Less : Expenses and loses     Operating expenses             87,930 Salaries expenses         1,21,290 Uncollectable accounts expenses             13,950 Rent               5,280 Interest               30,570 Total expenses      2,59,020 Net income/loss            69,455 CHUN EQUIPMENT CO. Balance sheet   $ $ Assets Current Asset   Cash             20,270 Notes receivable               17,940 Interest receivable                   500 Inventory         1,62,250 Prepaid rent             13,690 Suppliers                 2,990 Account receivables           1,12,030 Allowance for doubtful account              -6,880 Total current asset      3,22,790 Non- current asset   Office equipment               77,530 Accumulate depreciation           -33,600          43,930 Land          53,600 Total Asset      4,20,320 Liabilities and Net worth Account payable               62,640 Interest payable                 3,230 Salaries payable             12,780 Unearned revenue               55,690 Notes payable           1,25,530 Total current liabilities        2,59,870 Owners Equity and Net worth Owners investment/Common stock             52,500 Retained earnings           1,07,950 Total owners Equity      1,60,450 Total Liabilities and Net worth      4,20,320     Retained earnings   Beginning   51195 Profit for the year 69455 Dividend -12700 107950

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