Question

plug infromation in income statement,balance sheet

Formatting Alignment Number Clipboard 1 * A Given Data P07-21A f 'Given Data P07-21A: EFGHIJK SHERMAN EQUIPMENT CO. $ Salaries Expense Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings 69,000 Operating Expenses 100.000 Cash Flow from Investing Activities 24.000 Prepaid Rent 7,800 Land 8,100 Cash 1.200 Inventory 5,400 Accounts Payable 320,000 Salaries Payable 3.500 Cost of Goods Sold 1,500 Accounts Receivable 81,000 62,000 78.400 12,500 40,000 48.100 98,300 46,000 12,000 148,000 56,000 - 13 14 15 16 Given P07-24 © P07-24A P07-21A Given P07-21A

Answer 1

SHERMAN EQUIPMENT CO. Income Statement for the period ended 31st December , Year 2:- Particulars Amount $ Amounts Sales Revenue 320,000 Less: Cost of goods sold 148,000 Gross Profit 172,000 Less: Expenses Salaries expense 69,000 Uncollectible accounts expense 8,100 Operating expense 62,000 Total Expenses 139,100 Income from Operations 32,900 Add/(less) Non-operating income/expenses) Interest revenue 5,400 Net Income 38,300 SHERMAN EQUIPMENT CO. Balance sheet as at 31st December, Year 2:- Assets Amount $ Amount $ 48,100 Current Assets Cash Inventory Accounts receivable less: Allowance for Doubtful Accounts Notes receivable (short term) Prepaid Rent Supplies Interest receivable Total current assets Property, Plant and Equipment: Land Total Assets 98,300 56,000 (7,800) 24,000 12,500 1,200 1,500 233,800 40,000 273,800 Amount $ Amount $ Liabilities and shareholders equity Current Liabilities :- Accounts payable Salaries payable Total current liabilities 46,000 12,000 58,000 Shareholders Equity :- Common stock Retained earnings (81000-38300-3500) Total stockholders equity Total liabilities and shareholders equity 100,000 115,800 215,800 273,800