Question

On the worksheets is an Income Statement and Statement of Retained Earnings transaction analysis worksheet and a Balance Sheet transaction analysis worksheet for ABC Company. Please sum and link the transaction analysis columns and worksheets such that the financial statements are properly updated after each transaction, and the sum across to totals. After properly setting up the transaction analysis worksheets, please record the following transactions.

Please record the transactions below:
a. Purchased merchandise inventories, on account, terms 3/15, n/45, $40,000.
b. Sold merchandise, on account, sales price $78,000, cost $48,000, terms 2/10,
n/30.
c. Paid for the merchandise purchased in "a", 11 days after purchase.
d. Received payment from the customer in "b", 7 days after the sale.
e. Paid wages, $11,900 cash.
f. Some items that were sold a month ago were returned to ABC
Company. These items were sold for $8,400 and their cost was $5,000. They
were returned to inventory and cash was refunded to the customer.
g. ABC Company returned merchandise that it purchased some time
ago to the vendor, $11,900 cost. They had not yet paid for this, so accounts
payable was reduced.
h Paid a cash dividend to shareholders, $22,000
i Paid utilities, $2,300.

a b d f 9 h Revised $ 1,100,000 582,000 518,000 Income Statement Year Ended December 31 Sales revenue Cost of goods sold Gross profit Expenses Wages Utilities Maintenance Supplies Other Total expenses Net income 230,000 28,000 16,200 3,600 8,100 285,900 232,100 $ ABC COMPANY Statement of Retained Earnings Year ended December 31 Retained earnings, January 1 Plus net income Minus dividends Retained earnings, December 31 $ 456,000 232,100 (17,200) 670,900 $

Answer 1

Income statement		Transactions:								Revised
		a	b	c	d	e	f	g	h	i
Sales reve	1100000		78000				-8400				1169600
other	0			1200							1200
Total revenues	1100000										1170800
COGS	582000		48000				-5000				625000
GP	518000										545800
Expenses:
wages	230000					11900					241900
Utilities	28000									2300	30300
maintenance	16200										16200
supplies	3600										3600
other	8100				1560						9660
Total expenses	285900										301660
Net Income	232100										244140
Statement of Ret. Ear.
Retained ear Jan 1	456000										456000
plus Net Income	232100										244140
Minus dividends	-17200								-22000		-39200
Ret. Earn, Dec 31	670900										660940
Balance Sheet:
Assets:
Current Assets
Cash	31300			-38800	76440	-11900	-8400		-22000	-2300	24340
Acc Receivable	86500		78000		-78000						86500
Supplies	11600										11600
Merch. Inventory	120000	40000	-48000				5000	-11900			105100
total current assets	249400										227540
Plant and Equipment:
Building	360000										360000
Equipment	269000										269000
Land	21700										21700
Less Acc Dep	-25800										-25800
Net plant & equip	624900										624900
total Assets	874300										852440
Liabilities & SH Eq.:
Current Liabilities:
Acc payable	14900	40000		-40000				-11900			3000
Note payable	20500										20500
total Current liabilities	35400										23500
Long term NP	68000										68000
total liabilities	103400										91500
Stockholders' eq.
Common Stock	100000										100000
Retained Earnings	670900										660940
Total Stockholders' Eq.	770900										760940
total Liabi. & St. Eq.	874300										852440