Question

LO2 Problem 5-9 Financial Statements A list of accounts for Maple Inc. at December 31, 2016, follows: Accounts Receivable $ 2,359 Land Advertising Expense 4.510 Net purchases Buildings and Equipment, Net 55,550 Retained Earnings, January 1, 2016 Capital Stock 50,000 Salaries Expense 590 Salaries Payable Cash 2,300 Net sales Depreciation Expense 6,000 Transportation in Dividends Utilities Expense Income Tax Expense 3,200 Income Tax Payable 100 Interest Receivable Inventory: 6,400 January 1, 2016 7,500 December 31, 2016 $20,000 39,400 32,550 25,600 650 83,584 375 3,600 Required Determine cost of goods sold for 2016. Determine net income for 2016. 9. Prepare a balance sheet dated Dec LO5.6 lance sheet dated December 31, 2016, mtory Costing Methods-Periodic

Answer 1

The cost of goods sold, income statement and the balance sheet is presented below:
(1) Cost of Goods sald Opening Drivestory, Purchases on 1-26400 39400 Transportation. In a wa stub 375 Closing stock 2) lemagner uswolorAtwel e ú. Yo mode 38675 386 .IS

Income stalement Net sales 88584 Total Revenue 83584 Lessf Cast of Gudo sold Deprection eupenses Advertising expense selares Uhletes expense 38075 2300 4870 2 soos 3600 Total expenses 74685 8899 Net Income before Tan Less Income Tan Net Income 5699

Balance as on Sheet 31.12.2016 Assets Current Account Interest 2359 Assets Recereble Recerrable 590 Cash Closing Inventory Non- Current Assets rosters s a 0 12 Building & esprent ne path of Rb Land 55550 20000 8109 1919 EQUITY AND LABIUDBS Current Cubilities Income Tau Payable Selarus Rayable 3200 650 EQUITY Capital Stoel Retamed earning 329५१ 86099

Calculation of Retaimed carmany obening (1st January Addt Net Income Lesuf Dirdend 32550 5899 (6000) closing Relanned canning 32849

It is assumed that the interest receivable is already included in the sales amount.