Question

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 Expense 550,000 Accumulated Depreciation-Store Equipment 820,000 Rent Expense 104,000 Accounts Payable 336,000 Depreciation Expense-Office Equipment 60,000 Customer Refunds Payable 39,000 50,000 Insurance Expense 43,000 Salaries Payable 26,000 Office Supplies Expense Notes Payable (long-term) 200,000 Miscellaneous Administrative Expense 12,000 Common Stock 600,000 25,000 Interest Expense Prepare a balance sheet for Fernandez Co, assuming the current portion of the notes payable is $30,000. Fernandez Co. Balance Sheet December 31 Previous Next >

Answer 1

Fernandez Co. Statement of Income For the period ending December 31 Sales Cost of goods sold Gross Profit 9350000 5840000 3510000 Selling Expense: Sales Salaries Expense Advertising Expense Depre - Expense - Store Equip. Miscellaneous Selling Expense 820000 350000 120000 58000 1348000 Administrative Expense: Office Salaries Expense Rent Expense Depre - Expense - Off. Equip. Insurance Expense Office Supplies Expense Miscellaneous Admin. Expense Operating Income Non Operating Items Interest Expense Net Income 550000 104000 60000 50000 26000 1360000 -25000 1335000 Statement of Retained Earnings For the period ending December 31 Beginning Balance 2850000 Net Income 1335000 4185000 Dividends -50000 4135000

Amounts in $ Amounts in $ Balance sheet As at Dec. 31 Assets Current Assets Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 250000 Accounts Payable 1197000 Customer Refunds Payable 1790000 Salary Payable 23500 Notes Payable (Current) 14000 8500 3283000 Non Current Liabilities Notes Payable (Long Term) 336000 39000 43000 30000 448000 170000 Non Current Assets Office Equipment Accum. Depre - Office Equip. Store Equipment Accum. Depre - Store Equip. Total Assets 870000 -580000 2600000 -820000 290000 Shareholders Equity Common Stock 1780000 Retained Earnings 5353000 Total Liabilities & Equity 600000 4135000 4735000 5353000