2. Richmond Wins, Inc., had the following alphabetical list of accounts taken fr
ID: 2665168 • Letter: 2
Question
2. Richmond Wins, Inc., had the following alphabetical list of accounts taken from its adjusted trial balance at December 31, 20B:
Accounts Payable
$10,000
Accounts Receivable
14,000
Accumulated Depreciation-Building
13,400
Advertising Expense
6,400
Building
75,000
Capital Stock
40,000
Cash
10,000
Cost of Goods Sold
52,000
Depreciation Expense
1,000
Insurance Expense
1,900
Interest Payable
1,400
Inventory of Merchandise
30,000
Land
15,000
Prepaid Insurance
2,200
Rent Revenue
1,700
Retained Earnings (Jan. 1, 20B)
65,900
Salaries Expense
24,000
Salaries Payable
3,800
Sales
100,000
Supplies
400
Supplies Expense
800
Unearned Rent Revenue
100
Required:
A. Prepare a multiple step income statement for 20B. (Include gross profit, but ignore income taxes.)
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3. The following data were taken from the adjusted trial balance of Star Search Video Company.
Star Search Video Company
Adjusted Trial Balance Data
December 31, 20D
Accounts Payable
$12,000
Accounts Receivable
13,000
Accumulated Depreciation-Building
6,000
Accumulated Depreciation-Furniture & Fixtures
9,000
Building
60,000
Capital Stock
40,000
Cash
24,000
Copyrights
22,000
Dividends Declared
12,000
Furniture & Fixtures
15,000
Land
25,000
Note Payable (10%, due in 5 years)
40,000
Office Supplies
1,000
Prepaid Insurance
3,000
Retained Earnings (January 1, 20D)
23,000
Salaries Payable
2,000
Service Revenue
85,000
Salaries Expense
28,000
Utilities Expense
2,000
Depreciation Expense
5,000
Insurance Expense
2,000
Office Supplies Expense
1,000
Interest Expense
4,000
Required:
Prepare a classified balance sheet in good form at December 31, 20D. (Ignore income taxes).
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4 Use the following to answer question 4a, 4b and 4c
HANSON STORAGE
Adjusted Trial Balance
December 31
Cash........................................................................
$ 3,050
Accounts receivable................................................
400
Prepaid insurance....................................................
830
Office supplies........................................................
80
Office equipment....................................................
4,200
Accumulated depreciation–office equipment...........
$ 1,100
Buildings.................................................................
98,000
Accumulated depreciation–buildings........................
28,000
Land.......................................................................
115,000
Wages payable........................................................
880
Property taxes payable...........................................
1,400
Interest payable......................................................
2,200
Unearned rent.........................................................
460
Long-term notes payable........................................ ...............................................................................
150,000
Mary Hanson, Capital.............................................
40,340
Mary Hanson, Withdrawals.....................................
21,000
Rent earned.............................................................
57,500
Wages expense........................................................
25,000
Utilities expense.....................................................
1,900
Property taxes expense...........................................
2,400
Insurance expense...................................................
800
Office supplies expense...........................................
250
Depreciation expense–office equipment..................
400
Depreciation expense–buildings...............................
5,570
Interest expense......................................................
3,000
_______
Totals.....................................................................
$281,880
$281,880
4a. Prepare an income statement for the adjusted trial balance of Hanson Storage.
4b. Prepare a statement of owner's equity from the adjusted trial balance of Hanson Storage. Ms. Hanson's capital account balance of $40,340 consists of a $30,340 beginning-year balance plus a $10,000 investment during the current year.
4c. Prepare a balance sheet from the adjusted trial balance of Hanson Storage.
Accounts Payable
$10,000
Accounts Receivable
14,000
Accumulated Depreciation-Building
13,400
Advertising Expense
6,400
Building
75,000
Capital Stock
40,000
Cash
10,000
Cost of Goods Sold
52,000
Depreciation Expense
1,000
Insurance Expense
1,900
Interest Payable
1,400
Inventory of Merchandise
30,000
Land
15,000
Prepaid Insurance
2,200
Rent Revenue
1,700
Retained Earnings (Jan. 1, 20B)
65,900
Salaries Expense
24,000
Salaries Payable
3,800
Sales
100,000
Supplies
400
Supplies Expense
800
Unearned Rent Revenue
100
Explanation / Answer
2 Richmond Wines Income statement For the year of December 31, 20B. Sales Revenue: Sales 100000 Less: Cost of Goods Sold 52000 Gross Profit: 48000 Operating Expences: Insurance 1900 Depreciation 1000 Advertising 6400 Salaries 24000 Suppli Expences 800 Total Expences: 34100 Income from Operations: 13900 Revenues 13900 Rent Revenue 1700 Net Income: 15600 3 Balance Sheet of Star search Video's Company. Assets: Current Assets: Accounts Receivable 13000 Cash 24000 Supplies 1000 Prepaid Insurance 3000 Total Current Assets 41000 Property, Plant, and Equipment: Buildings 60000 Less: Accumulated Depreciation 6000 54000 Furniture & Fixtures 15000 Less: Accumulated Depreciation 9000 6000 Land 25000 Total Property, Plant, and Equipment: 85000 Intangible Assets: Coppyrights 22000 Total Assets: 148000 Liabilities & Shareholders Equity: Current Liabilities: Accounts Payble 12000 Salaries Payble 2000 Total Current Liabilities: 14000 Long term Debt Notes Payble 40000 Shareholders Equity: Capital Stock 40000 Retained Earnings 54000 Total Shareholders Equity: 94000 Total Liabilities & Shareholders Equity: 148000 Workings: Sales Revenue(A) 85000 Less: Expences Salaries 28000 Insurance Expences 2000 Depreciation 5000 Utilities Expences 2000 Office Supplies Expences 1000 Inteest Expences 4000 Total Expences (B) 42000 Income(A - B) 43000 Less: Dividends Delared 12000 Net Income 31000 Retained Earnings 23000 Total Retained Earnings: 54000 2 Richmond Wines Income statement For the year of December 31, 20B. Sales Revenue: Sales 100000 Less: Cost of Goods Sold 52000 Gross Profit: 48000 Operating Expences: Insurance 1900 Depreciation 1000 Advertising 6400 Salaries 24000 Suppli Expences 800 Total Expences: 34100 Income from Operations: 13900 Revenues 13900 Rent Revenue 1700 Net Income: 15600 3 Balance Sheet of Star search Video's Company. Assets: Current Assets: Accounts Receivable 13000 Cash 24000 Supplies 1000 Prepaid Insurance 3000 Total Current Assets 41000 Property, Plant, and Equipment: Buildings 60000 Less: Accumulated Depreciation 6000 54000 Furniture & Fixtures 15000 Less: Accumulated Depreciation 9000 6000 Land 25000 Total Property, Plant, and Equipment: 85000 Intangible Assets: Coppyrights 22000 Total Assets: 148000 Liabilities & Shareholders Equity: Current Liabilities: Accounts Payble 12000 Salaries Payble 2000 Total Current Liabilities: 14000 Long term Debt Notes Payble 40000 Shareholders Equity: Capital Stock 40000 Retained Earnings 54000 Total Shareholders Equity: 94000 Total Liabilities & Shareholders Equity: 148000 Workings: Sales Revenue(A) 85000 Less: Expences Salaries 28000 Insurance Expences 2000 Depreciation 5000 Utilities Expences 2000 Office Supplies Expences 1000 Inteest Expences 4000 Total Expences (B) 42000 Income(A - B) 43000 Less: Dividends Delared 12000 Net Income 31000 Retained Earnings 23000 Total Retained Earnings: 54000Related Questions
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