Question

Phuket 178 Chapter 5 P5-6A Items from the accounts of Marchand Distributors at May 31, 2020, follow, listed in alphabetical order. Marchand Distributors was the perpetual inventory system. For simplicity, the operating expenses are summarized in the General Expenses and the Selling Expenses accounts Accounts Payable. $ 51,000 Interest Payable..... $ 2.800 Accounts Receivable.... 107,500 Interest Revenue... 600 Accumulated Amortization-Equipment. 96,900 Inventory, May 31, 2020.... 147,100 C. Marchand, Capital... 167,800 Notes Payable, Long-Term. 114,800 C. Marchand, Withdrawals.... 66.900 Salaries Payable 7,200 Cash 19,900 Sales Discounts 26,500 Cost of Goods Sold... 1,086,900 Sales Returns and Allowances.......... 45,900 Equipment. 340,800 Sales Revenue... 1,991,500 General Expenses.... 206,800 Selling Expenses 357,200 Interest Expense.. 9,200 Supplies....... 33,100 Uneamed Sales Revenue... 15,200 Required 1. Prepare the business's single-step income statement for the year ended May 31, 2020. Show Net Sales Revenue and not the individual accounts. 2. Prepare the statement of owner's equity for the year ended May 31, 2020 3. Prepare Marchand Distributors' classified balance sheet in report format at May 31, 2020.

Answer 1

1.

Marchand Distributors

Income statement
For the year ended May 31, 2020

Amount ($) Revenue Net Sales 1,919,100 [1,991,500-26,500-45,900] 600 Interest revenue Total Revenues 1,919,700 Expenses Cost of goods sold General expenses 1,086,900 206,800 Interest expense 9,200 Selling Expenses Total Expenses 357,200 1,660,100 Net Income 259,600

2.

Marchand Distributors

Statement of owner's equity

For the year ended May 31, 2020

Amount($) Amount($) Particulars Beginning Capital Balance Add: Income earned during the period Less: Owner's drawings during the year 167,800 259,600 66,900 192,700 Ending Capital Balance 360,500

3.

Marchand Distributors

Balance sheet

As at May 31, 2020

Particulars Amount($) Amount($) Assets Current assets Cash Accounts Receivable Inventory Supplies Total current assets Property, Plant and equipment 19,900 107,500 147,100 33,100 307,600 Equipment 340,800 Less : Accumulated depreciation Total Property, Plant and Eqipment Total Assets Liability and Owner's Equity Current liabilities Accounts Payable Interest Payable Salaries Payable Unearned Sales Revenue Total current liabilities Long-term liabilities Notes Payable Total long-term liabilities Total liabilities Owner's equity |C.Marchand, Capital C.Marchand, Withdrawals Total liabilities and owner's equity 96,900 243,900 551,500 51,000 2,800 7,200 15,200 76,200 114,800 114,800 191,000 427,400 (66,900) 360,500 551,500