Wood Design Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2013.
INSTRUCTIONS
1. Prepare a classified income statement for the year ended December 31, 2013. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December 31, 2013. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2013. The mortgage and the loans extend for more than a year.
ACCOUNTS
| Debit | Credit |
Cash | $ 23,100 |
|
Petty Cash Fund | 400 |
|
Notes Receivable | 10,800 |
|
Accounts Receivable | 86,164 |
|
Allowance for Doubtful Accounts |
| $ 5,000 |
Merchandise Inventory | 224,000 |
|
Warehouse Supplies | 2,760 |
|
Office Supplies | 1,320 |
|
Prepaid Insurance | 7,200 |
|
Land | 36,000 |
|
Building | 168,000 |
|
Accumulated Depreciation—Building |
| 48,000 |
Warehouse Equipment | 32,000 |
|
Accumulated Depreciation—Warehouse Equipment |
| 14,400 |
Delivery Equipment | 46,000 |
|
Accumulated Depreciation—Delivery Equipment |
| 17,600 |
Office Equipment | 20,000 |
|
Accumulated Depreciation—Office Equipment |
| 9,000 |
Notes Payable |
| 19,200 |
Accounts Payable |
| 38,000 |
Interest Payable |
| 480 |
Mortgage Payable |
| 56,000 |
Loans Payable, Long-term |
| 12,000 |
Chuck Kirby, Capital (Jan. 1) |
| 397,640 |
Chuck Kirby, Drawing | 126,000 |
|
Income Summary | 234,000 | 224,000 |
Sales |
| 1,665,884 |
Sales Returns and Allowances | 17,200 |
|
Interest Income |
| 1,480 |
Purchases | 757,000 |
|
Freight In | 12,800 |
|
Purchases Returns and Allowances |
| 7,440 |
Purchases Discounts |
| 10,160 |
Warehouse Wages Expense | 189,600 |
|
Warehouse Supplies Expense | 6,100 |
|
Depreciation Expense—Warehouse Equipment | 4,800 |
|
Salaries Expense—Sales | 259,200 |
|
Travel and Entertainment Expense | 20,500 |
|
Delivery Wages Expense | 59,330 |
|
Depreciation Expense—Delivery Equipment | 8,800 |
|
Salaries Expense—Office | 69,600 |
|
Office Supplies Expense | 3,000 |
|
Insurance Expense | 5,200 |
|
Utilities Expense | 8,290 |
|
Telephone Expense | 5,520 |
|
Payroll Taxes Expense | 54,000 |
|
Property Taxes Expense | 4,600 |
|
Uncollectible Accounts Expense | 4,800 |
|
Depreciation Expense—Building | 8,000 |
|
Depreciation Expense—Office Equipment | 3,000 |
|
Interest Expense | 7,200 |
|
Totals | $2,526,284 | $2,526,284 |
Analyze: What is the current ratio for this business?
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