Question

1) Use the following accounts to prepare a year end multi step income statement and a classified balance sheet for the Jones Company. Administrative expenses Accumulated depreciation Equipment Cash 23000 30000 45000 6000 15000 30000 500 12000 400 common stock Cost of merchandise sold Interest expense Rent Revenue Unearned fees Supplies Prepaid Insurance Accounts Receivable Bonds payable Sales Selling Expenses Retained earnings 450 500 4500 10000 84000 2000 1050 3) Use the following accounts to prepare a year end multi-step income statement for the Jones Company. Cost of merchandise sold $20000; administrative expenses $5,000;interest expense $1000;rent revenue $5500; sales $31,000; and selling expenses $4600.

Answer 1

Answer to Q#1 (First question in the list): $84,000 $30,000 $54,000 JONES COMPANY Multi-Step Income Statement For Year Ended December 31, XXXX Sales Cost of merchandise sold Gross profit Operating expenses: Selling expenses $2,000 Administrative expenses $23,000 Total operating expenses Operating Income Other revenues and expenses: Rent revenue $12,000 Interest expense $500 Total other revenues & expenses Net Income $25,000 $29,000 $11,500 $40,500

$400 $400 JONES COMPANY Classified Statement of Financial Position December 31, XXXX Liabilities & Shareholders' Equity Current Liabilities: $6,000 Unearned fees $4,500 Total Current Liabilities $450 Long-term Liabilities: $500 Bonds Payable $11,450 Total Liabilities Shareholders' Equity: $45,000 Common Stock $30,000 Retained Earnings $15,000 Total Shareholders' Equity $26,450 Total Liabilities & Shareholders' equity Assets Current Assets: Cash Accounts receivable Supplies Prepaid Insurance Total Current Assets Plant, Property & Equipment: Equipment Less: Accumulated Depreciation Plant, Property & Equipment, Net Total Assets $10,000 $10,400 $15,000 $1,050 $16,050 $26,450