Question

Credit $ Debit 34,100 500 11,800 86,000 $ 6,000 234,000 2,860 1,420 10,200 46,000 178,000 54,000 37,000 17,400 51,000 19,600 25,000 ACCOUNTS Cash Petty Cash Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Warehouse Equipment Accumulated Depreciation-Warehouse Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Office Equipment Accumulated Depreciation Office Equipment Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan. 1) Charles Ronie, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight In Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense Warehouse Supplies Expense Depreciation Expense-Warehouse Equipment Salaries Expense-Sales 12,000 20,200 49,000 580 61,000 17,000 452,460 127,000 244,000 234,000 1,685,000 18,200 1,580 767,000 13,800 8,440 11,160 199,600 7,100 5,800 269, 200

Answer 1

Amount SUPERIOR HARDWOOD COMPANY Balance sheet Particulars Assets Current assets Cash 34,100 Petty cash fund 500 Notes receivable, due 2020 11,800 Accounts receivable 86,000 Allowance for doubtful debts (6000) 80,000 Merchandise inventory 2,34,000 Prepaid expenses Ware house supplies 2,860 office supplies 1,420 prepaid insurance 10,200 Total current assets Plant & equipment Land 46,000 Building 1,78,000 Accumulated depreciation - Builidng (54000) 1,24,000 Warehouse equipment 37,000 Accumulated depreciation - Warehouse equipment (17400) 19,600 Delivery equipment 51,000 Accumulated depreciation - Delivery eqipment (19600) 31,400 3,74,880

25,000 (12000) 13,000 Ofice equipment Accumulated depreciation - office equipment Total plant & equipment Total assets 2,34,000 6,08,880 20,200 49,000 580 61,000 1,30,780 17,000 Current liabilities Notes payable due, 2020 Accounts payable Interest payable Mortgage payable Total current liabilities Long term liabilities Loans payable, long term Total long term liabilities Total liabilities Owners equity Charles lonie capital Net profit Charles lonie drawings Total owner equity Total liabilities and owners equity 17,000 1,47,780 4,52,460 1,35,640) (127000) 4,61,100 6,08,880

Amount Income statement Particulars Sales Sales returns & allowance Interest income Total income 1685000 (18200) 16,66,800 1,580 16,68,380 Income summary Purchases Purchase returns & allowances Purchases discounts Freight in Warehouse wages expenses Warehouse suppies expenses Depreciation expenses - Warehouse equipment Depreciation expenses - Delivery equipment Depreciation expenses - Building Depreciation expenses - office equipment Salaries expenses - sales Salaries expenses - office Travel & entertainment expense Delivery wages expenses office supplies expense 10,000 7,67,000 (8440) (11160) 7,47,400 13,800 199600 7,100 5,800 9,800 9,000 4,000 2,69,200 70,600 21,500 60,330 4,000

Insurance expense Utility expenses telephone expenses Payroll taxes expenses Property taxes expenses Uncollectible accounts expenses Interest expense Total expenses 6,200 9,290 6,520 59,000 5,600 5,800 8,200 15,32,740 profit/(loss) 1,35,640