Question

Problem 1-63A (Algorithmic)
Income Statement, Retained Earnings Statement, and Balance Sheet

The following information relates to Ashton Appliances for 2019.

Accounts payable		$16,800
Accounts receivable		70,300
Accumulated depreciation (building)		106,200
Accumulated depreciation (furniture)		27,600
Bonds payable (due in 7 years)		192,000
Building		300,000
Cash		41,450
Common stock		115,620
Cost of goods sold		511,350
Depreciation expense (building)		11,050
Depreciation expense (furniture)		12,000
Furniture		130,000
Income taxes expense		16,650
Income taxes payable		11,400
Insurance expense		36,610
Interest expense		15,500
Inventory		59,850
Other assets		92,800
Rent expense (store equipment)		79,200
Retained earnings, 12/31/2018		54,000
Salaries expense		101,000
Salaries payable		7,190
Sales revenue		946,950

Required:

1. Prepare a single-step income statement for 2019.

Ashton Appliances
Income Statement
For the Year Ended December 31, 2019
Revenues:
Sales revenue Accounts receivable Cash Retained earnings Salaries expense Sales revenue		$
Expenses:
Cost of goods sold Cash Common stock Cost of goods sold Inventory Sales revenue	$
Salaries expense Accounts receivable Accumulated depreciation Cash Salaries expense Salaries payable
Rent expense Bonds payable Furniture Prepaid rent Rent expense Sales revenue
Insurance expense Accounts payable Insurance expense Inventory Prepaid insurance Retained earnings
Interest expense Accounts receivable Accumulated depreciation Interest expense Interest payable Sales revenue
Depreciation expense (furniture) Accounts payable Accumulated depreciation Depreciation expense (furniture) Furniture Salaries payable
Depreciation expense (building) Accumulated depreciation Building Depreciation expense (building) Cash Sales revenue
Income taxes expense Bonds payable Cash Common stock Income taxes expense Income taxes payable
Total expenses
Net income		$

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Prepare a retained earnings statement for 2019.

Ashton Appliances
Retained Earnings Statement
For the Year Ended December 31, 2019
Beginning retained earnings, January 1, 2019 Beginning retained earnings, January 1, 2019 Cash Cost of goods sold Ending retained earnings, December 31, 2019 Net income	$
Add: Net income Add: Cash Add: Common stock Add: Net income Add: Retained earnings Add: Service revenue
Ending retained earnings, December 31, 2019 Beginning retained earnings, January 1, 2019 Cash Ending retained earnings, December 31, 2019 Net income Retained earnings	$

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Prepare a properly classified balance sheet as of December 31, 2019.

Ashton Appliances
Balance Sheet
December 31, 2019
Assets
Current assets:
Cash Accounts payable Bonds payable Cash Retained earnings Sales revenue	$
Accounts receivable Accounts payable Accounts receivable Common stock Cost of goods sold Wages expense
Inventory Building Furniture Inventory Salaries expense Salaries payable
Total current assets		$
Property, plant and equipment:
Building Building Cash Cost of goods sold Inventory Income taxes payable	$
Less: Accounts payable Less: Accounts receivable Less: Accumulated depreciation Less: Depreciation expense (building) Less: Retained earnings		$
Furniture Insurance expense Inventory Rent expense Sales revenue	$
Less: Accumulated depreciation Less: Bonds payable Less: Common stock Less: Depreciation expense (furniture) Less: Inventory
Total property, plant and equipment
Accounts payable Bonds payable Common stock Other assets Retained earnings
Total assets		$
Liabilities
Current liabilities:
Accounts payable Accounts receivable Building Cash Insurance expense	$
Bonds payable Common stock Furniture Income taxes expense Income taxes payable
Accumulated depreciation Interest expense Inventory Salaries expense Salaries payable
Total current liabilities	$
Long-term liabilities:
Accounts receivable Bonds payable Cash Income taxes payable Salaries payable
Total liabilities		$
Stockholders' Equity
Stockholders' equity:
Bonds payable Building Cash Common stock Cost of goods sold	$
Accounts receivable Cash Furniture Inventory Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity		$

Answer 1

Ans: Ashion Appliances Income Statement for the Year Ended December 31, 2019 Revenues Sales revenue 26 946,950 Total revenue & 946,950 $511,350 $11,050 $12,000 | Expenses : Cost of Goods sold Depreciation Expenses ( Building) Depreciation Enenses (ferniture) Salaries Expense Reut Expense Interest Expense Insurance expense Income Tax Expenses & 101,000 $79,200 $15,500 $36,610 $16,650 Total Expenses Net Income $783,360 $163,590 $ 54,000 Reteuined carming Stubenreut Retained Earnings, 12/31/2018 Add Net Income $ 163,590 Less: Dividends | Retened Carrings, 12131/2019 $ 217,590

cash lo U N015 - .Ashton Appliances ! Balance sheet Derewiber 31, 2019 Assets Current assets ir ar | $ 41, 450 Accounts receivable $ 70, 300 Inventory $59,850 Other Assets $92,800 Total Current Assets $264,400 Property, plant and equiement, Building $ 300,000 Kess: Accamulated Depreciation (Burbling) |(4106,2200) furniture $130,000 Kaxsi Accumulated Depreciation (Jumituse) |(€27,600) Total Property, plant and Equipment | $296,900 Total Assets $ 560.600 Liabilities Current Liabilities Account Payable $16,800 Income Tax Payable $ 11,400 Salaries payable $7190 Total Current Liabilities 36,390 Long term Liabilities, Bands payable $ 199,000 Total Liabilities 1 $287.390 -

$115,600 $217,590 Stockholders' equity.ir Common stock Retained Earnings. Total Stockholders' equity | Total liabilities and stockholder's equity $333,910 $560,600
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