Question

Required information [The following information applies to the questions displayed below.] Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2016. Jordan also has completed a correct trial balance as follows: Credit Debit $ 58,300 49,400 1,500 34,100 $ 13,000 3,600 1,400 21,000 JORDAN SALES COMPANY Trial Balance At March 31, 2016 Account Titles Cash Accounts receivable Office supplies inventory Automobiles (company cars) Accumulated depreciation, automobiles Office equipment Accumulated depreciation, office equipment Accounts payable Income taxes payable Salaries and commissions payable Note payable, long-term Capital stock (par $1; 32,600 shares) Paid-in capital Retained earnings (on April 1, 2015) Dividends declared and paid during the current year Sales revenue Cost of goods sold Operating expenses (detail omitted to conserve time) Depreciation expense (on autos and including $400 on office equipment) Interest expense Income tax expense (not yet computed) Totals 1,400 33,000 32,600 4,600 7,000 10,700 103,700 32,400 18,900 7,400 1,400 $217,700 $217,700 b. Classified balance sheet at the end of the reporting year, March 31, 2016. Include (1) income taxes for the current year in Income Taxes payable and (2) dividends in Retained earnings. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Jordan Sales Company 103700 32400 71300 58300 49400 1500 Statement of Income For the year ending 31.3.2016 Sales Revenue Cost of goods sold Gross Profit Operating Expenses: Operating Expense Depreciation Expense Total Operating Expense Income from Operations Interest Expense Income before Income Taxes Income Tax expense @ 25% Net Income 18900 7400 26300 45000 1400 43600 10900 32700 Balancesheet As at 31.3.2016 Assets Current Assets Cash Accounts Receivable Office Supplies Inventory Total Current Assets Non Current Assets: Automobiles Less:Accum.Depreciation Office Equipment Less:Accum.Depreciation Total Assets 21100 34100 - 13000 3600 - 1400 2200 132500 21000 10900 1400 33300 33000 66300 Liabilities Current Liabilities Accounts Payable Income Taxes Payable Salaries and Commissions Payable Total Current Liabilities Long Term Liabilities: Note Payable Total Liabilities Stockholders Equity Contributed Capital: Capital Stock ( 32600 shares par $1) Paid in Capital Total Contributed Capital Retained Earnings (Beginning balance 7000 + Net Income 32700 - dividends declared and paid 10700) Total Stockholders Equity Total Liabilities & Stockholders Equity 32600 4600 37200 29000 66200 132500