Question

Leon Company Adjusted Trial Balance December 31, 2017 DEBIT CREDIT 1,300 4,445 Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies 370 500 100 50 1,900 Inventory Prepaid Expenses Equipment Accumulated Depreciation 150 8,570 1,800 Copyrights Accounts Payable Interest Payable 430 650 65 Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/17) Dividends Sales 150 1,200 5,000 300 3,700 5,500 43,400 Sales Returns & Allowances 130 Sales Discounts 75 Cost of Goods Sold Bad debt expense 25,550 80 Depreciation Expense Amortization Expense Wages Expense Rent Expense Office Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense 770 90 4,500 1,000 400 250 550 200 365 460 57,000 57,000 Totals

Answer 1

Answer with working is given below

LEON COMPANY Income Statement for the year ended December 31st, 2017 Sales $43,400 Less: Returns and allowances -$130 Less: Discounts -$75 Net Sales $43,195 Less: Cost of Goods sold $25,550 Gross profit $17,645 Operating Expenses Wages expense $4,500 Rent expense $1,000 Office expense $400 Supplies expense $250 Selling expense $550 Bad Debts Amortization expense $90 Depreciation $770 Total Operating expense $7,640 Income from Operations $10,005 Non Operating Income Interest Revenue $365 Profit before Interest $10,370 Less: Interest expense $200 Profit before tax $10,170 Less: Income tax expense $460 Net Income $9,7101 $80 LEON COMPANY Statement of Retained Earnings Opening Balance Add: Net profit during the year $3,700 $9,710 $13,410 -$5,500 $7,910 Less: Dividend Closing balance of Retained Earnings LEON COMPANY BALANCE SHEET AS ON DECEMBER 31, 2017 Assets Current Assets Cash $1,300 Accounts Receivable $4,445 Allowance for Doubtful Debts -$370 $4,075 Short term note receivable $500 Interest Receivable $100 Supplies $50 Inventory $1,900 Prepaid Expenses $150 Total Current Assets $8,075 $8,570 Fixed Assets Equipment Less: Accumulated Depreciation Total Fixed Assets -$1,800 $6,770 Intangible Assets Copyrights $430 $15,275 Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable Interest payable Unearned revenue Total Current Liabilities $650 $65 $150 Long term liabilities Notes payable $1,200 Stockholders' Equity Common Stock Paid in Capital in excess of Par Retained Earnings $5,000 $300 $7,910 $13,210 Liabilities and Stockholders' Equity $15,275