ZuoTi.Pro
Question

The following selected accounts and their normal balances appear in the ledger of Indian Jones Co. for the year ended Decembe
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer -

1. Answer -

Multi-step income statement:

Under multi-step income statement revenue and expenses are separated into as operating and non-operating.

Indiana Jones Co.
Income Statement
For the Year Ended December 31, 2019
Sales $720185
Less: Sales returns and allowances ($6140)
Less: Sales discounts ($5790)
Net sales $708255
Cost of merchandise sold $525305
Gross margin $182950
Operating expenses:
Sales salaries expense $60030
Advertising expense $10860
Depreciation expense-Store equipment $3100
Miscellaneous selling expense $630
Office salaries expense $21020
Rent expense $8100
Depreciation expense-Office equipment $2490
Insurance expense $1910
Office supplies expense $610
Miscellaneous administration expense $760
Total operating expense $109510
Income from operation $73440
Non-operating income/(expense):
Rent revenue $600
Interest revenue $3800
Interest expense ($2440)
Total non operating income/(expense) $1960
Net income $75400

Calculation:

1. Gross margin:

= Net sales - Cost of merchandise sold

= $708255 - $525305

= $182950

2. Income from operation:

= Gross margin - Total operating expenses

= $182950 - $109510

= $73440

3. Total non-operating income/(expense):

= Rent revenue + Interest revenue - Interest expense

= $600 + $3800 - $2440

= $1960

4. Net income:

= Income from operation + Total non-operating income

= $73440 + $1960

= $75400

2. Answer -

Statement of Owner’s Equity:

Indiana Jones Co.
Statement of Owner's Equity
For the Year Ended December 31, 2019
Indiana Jones, capital Jan. 01, 2019 $153800
Net income for the year $75400
Less: Indiana Jones, withdrawals ($18000)
Increase in owner's equity $57400
Indiana Jones, capital Dec. 31, 2019 $211200

Calculation:

1. Increase in owner’s equity:

= Net income - Withdrawals

= $75400 - $18000

= $57400

2. Indiana Jones, capital Dec. 31, 2019:

= Indiana Jones, capital Jan. 01, 2019 + Increase in owner’s equity

= $153800 + $57400

= $211200

3. Answer -

Balance Sheet:

Indiana Jones Co.
Balance Sheet
As of December 31, 2019
Assets
Current assets:
Cash $52950
Accounts receivable $60880
Notes receivable $40000
Interest receivable $200
Merchandise inventory $62150
Office supplies $480
Prepaid insurance $2650
Total current assets $219310
Property, plant and equipment:
Land $10000
Store equipment $27100
Less: Accumulated depreciation ($5700) $21400
Office equipment $15570
Less: Accumulated depreciation ($4720) $10850
Total property, plant and equipment $42250
Total assets $261560
Liabilities
Current liabilities:
Account payable $22420
Salaries payable $1140
Unearned rent $1800
Notes payable-Current portion $5000
Total current liabilities $30360
Long-term liabilities:
Notes payable-Long term $20000
Total liabilities $50360
Owner's equity
Indiana Jones, capital Dec. 31, 2019 $211200
Total liabilities and owner's equity $261560

Calculation:

Notes payable-Long term:

= $25000 - $5000 (Notes payable-Current portion)

= $20000

0 0
Add a comment
Know the answer?
Add Answer to:
The following selected accounts and their normal balances appear in the ledger of Indian Jones Co....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $109,500 Retained Earnings Dividends Accounts Receivable Inventory Estimated Returns Inventory Sales 297,200 332,900 22,500 10,300 8,000 482,700 65,600 $4,011,400 2,320,300 652,500 179,400 Office Supplies Prepaid Insurance Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Office Equipment 241,000 35,000 Miscellaneous Selling Expense 15,300 Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store...

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $123,500 Retained Earnings 544,200 Accounts Receivable 335,100 Dividends 73,900 Inventory 375,300 Sales $4,522,400 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,615,800 Office Supplies 11,600 Sales Salaries Expense 735,600 Prepaid Insurance 9,000 Advertising Expense 202,300 Office Equipment 271,700 Depreciation Expense—    Store Equipment 39,400 Accumulated Depreciation—    Office Equipment 184,600 Miscellaneous Selling Expense 17,300 Store Equipment 848,200 Office...

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Cash $ 245,100 Accounts Receivable 971,100 Merchandise Inventory 1,786,300 Estimated Returns Inventory 22,500 Office Supplies 15,200 Prepaid Insurance 3,400 Office Equipment 836,100 Accumulated Depreciation-Office Equipment 559,400 Store Equipment 3,598,200 Accumulated Depreciation-Store Equipment 1,827,700 Accounts Payable 362,600 Customer Refunds Payable 22,500 Salaries Payable 40,800 Note Payable (final payment due 2022) 288,000 Kristina Marble, Capital 3,464,100 Kristina Marble, Drawing...

  • The following selected accounts and their current balances appear in the ledger of Fernandez Co. at...

    The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year. Cash $250,000 Retained Earnings $2,850,000 Accounts Receivable 1,197,000 Dividends 50,000 Inventory 1,790,000 Sales 9,350,000 Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000 Office Supplies 14,000 Sales Salaries Expense 820,000 Prepaid Insurance 8,500 Advertising Expense 350,000 Office Equipment 870,000 Depreciation Expense-Store Equipment 120,000 Accumulated Depreciation-Office Equipment 580,000 Miscellaneous Selling Expense 58,000 Store Equipment 2,600,000 Office Salaries Expense 550,000...

  • Calculator The following selected accounts and their current balances appear in the ledger of Femandez Co....

    Calculator The following selected accounts and their current balances appear in the ledger of Femandez Co. at the end of its fiscal year. Cash $250,000 Retained Earnings 2,850,000 Accounts Receivable 1,197,000 Dividends 50,000 Inventory 1,790,000 Sales 9,350,000 Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000 Office Supplies 14,000 Sales Salaries Expense 820,000 Prepaid Insurance 8,500 Advertising Expense 350,000 Office Equipment 870,000 Depreciation Expense-Store Equipment 120,000 Accumulated Depreciation Office Equipment 580,000 Miscellaneous Selling Expense 58,000 Store Equipment 2,600,000 Office Salaries...

  • Instruction The following selected accounts and their current balances appear in the ledger of Fernandez Co....

    Instruction The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year. Cash $250,000 Retained Earnings $2,850,000 Accounts Receivable 1,197,000 Dividends 50,000 Inventory 1,790,000 Sales 9,350,000 Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000 Office Supplies 14,000 Sales Salaries Expense 820,000 Prepaid Insurance 8,500 Advertising Expense 350,000 Office Equipment 870,000 Depreciation Expense-Store Equipment 120,000 Accumulated Depreciation-Office Equipment 580,000 Miscellaneous Selling Expense 58,000 Store Equipment 2,600,000 Office Salaries Expense...

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...

  • The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $238,400 Accounts receivable 960,300 Inventory 1,644,400 Estimated returns inventory 20,900 Office supplies 22,200 Prepaid insurance 15,100 Office equipment 825,800 Accumulated depreciation-office equipment 551,100 Store equipment 3,603,000 Accumulated depreciation-store equipment 1,819,400 Accounts payable 356,700 Customer refunds payable 48,800 Salaries payable 44,900 Note payable (final payment due in 6 years) 285,000 Common stock 507,300 Retained earnings 2,822,800 Dividends...

  • he following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

    he following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Accounts receivable 966,000 Inventory 1,690,000 Estimated returns inventory 22,500 Office supplies 13,500 Prepaid insurance 8,000 Office equipment 830,000 Accumulated depreciation-office equipment 550,000 Store equipment 3,600,000 Accumulated depreciation-store equipment 1,820,000 Accounts payable 326,000 Customer refunds payable 40,000 Salaries payable 41,500 Note payable (final payment due 2024) 300,000 Common stock 500,000 Retained earnings 2,949,100 Dividends 100,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT