Question

Using Be Prepared, Inc.’s adjusted trial balance and prior period’s balance sheet, prepare the following Financial Reports: Multi-Step Income Statement for the month of January 2021 Statement of Retained Earnings for the month of January 2021 Note: There are no prior period adjustments and all dividends declared and paid are cash dividends in the amount of $25,000.
W Download Share Accounting Il Practice Set 2020 ACC 112-4W1 Spring (1).docx File Edit Format Tools Help o na 5 Q a Normal . • BI U A - A E TE E Credits Debits 423,615.00 $ 25,000.00 540.00 100.00 15,000.00 7,200.00 8,000.00 500.00 1,600.00 375,000.00 500,000.00 72,000.00 70,000.00 17,500.00 Account ID Account Description 1001 Cash 1021 Accounts Receivable 1022 Allowance for Doubtful Acc 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 95,000.00 15,800.00 65,000.00 30,000.00 12,500.00 5,500.00 325,000.00 375,000.00 10,500.00 210,000.00 120,000.00 61,250.00 295,000.00 90,000.00 850.00 90,000.00

Answer 1

Be Prepared, Inc.’s
Income Statement
For the Month Ended January 2021
Revenue
Sales		$275,575
Less: Sales Discount	$750
Sales Return and Allowances	$5,250	$6,000
Net sales		$269,575
Cost of goods sold		$125,500
Gross Profit		$144,075
Selling Expesnes:
Supplies Expense	$2,400
Depreciation Exp: Store Eq	$800
Sales Salaries Expense	$20,000
Sales Payroll Tax Expense	$5,600
Utilities Expense	$1,200
Repairs Expense	$750
Bad Debts Expense	$2,000	$32,750
General and Administrative:
Insurance Expense	$300
Repairs Expense	$2,100
Depreciation Expense: Building	$9,000
Depreciation Exp: Office Eq.	$2,500
Utilities Expense	$1,100
Office Salaries Expense	$25,000
Office Payroll Tax Expense	$7,000
Amortization Expense: Pat	$800
Delivery Expense	$1,500	$49,300
Others Income & Expense
Interest Revenue	$50
Interest Expense	($6,500)	($6,450)
Income before tax		$55,575
Income tax expenses		$0
Net Income		$55,575
Be Prepared, Inc.’s
Statement of Retained Earnings
For the Month Ended January 2021
Retained earnings (beginning of the year)		$850
Add/Less: Net income/loss		$55,575
		$56,425
Less: Dividends		$25,000
Retained earnings (end of the year)		$31,425