Solution-Financial statements and calculate

Financial statements and calculate ratios-perpetual system

Assignment Help Accounting Basics

Reference no: EM131791830

Prepare financial statements and calculate ratios-perpetual system.

An alphabetical list of Rikards Company's adjusted accounts at its fiscal year end, August 31, 2017, follows. All accounts have normal balances.

Accounts payable	$ 15,500	Notes payable	$ 42,000
Accumulated depreciation-equipment	14,000	Prepaid insurance	575
Accumulated depreciation-furniture	17,500	R. Smistad, capital	65,750
Cash	15,450	R. Smistad, drawings	80,000
Cost of goods sold	271,500	Rent expense	24,000
Depreciation expense	7,000	Salaries expense	50,000
Equipment	35,000	Salaries payable	2,250
Furniture	42,000	Sales	465,000
Insurance expense	3,575	Sales returns and allowances	16,300
Interest expense	2,100	Supplies	950
Interest payable	525	Supplies expense	6,325
Merchandise inventory	70,350	Unearned revenue	2,600

Additional information:

1. Of the notes payable, $6,000 becomes due on February 17, 2018. The balance is due in 2019.
2. On July 18, 2017, R. Smistad invested $3,500 cash in the business.

Instructions

(a) Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet.

(b) Calculate the gross profit margin and profit margin.

Reference no: EM131791830

Questions Cloud

Analyze the management practices of that organization : Analyze the management practices of that organization using the tools we have covered in this semester.

Determine zeff postretirement health care expense : Zeff Manufacturing provides the following information about its postretirement health care plan for 2014.

Strengths and weaknesses of contingency leadership theory : Explain the strengths and weaknesses of contingency leadership theory.

Calculating available skilled and unskilled workers : The steps involved in planning include: Calculating available skilled and unskilled workers. Determining the labor required to fulfill demand

Financial statements and calculate ratios-perpetual system : Prepare financial statements and calculate ratios-perpetual system

Determine the amount of amortization of intangible assets : Glitch Company incurred the following costs during 2014. Determine the amount of amortization of intangible assets that Glitch should record in 2014 and 2015.

Give examples of contingency leadership theory : Explain and give examples of contingency leadership theory. How can leaders influence organizational processes and improvements?

Compute the company''s activity variances for july : Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport

What is product margin for product under activity-based cost : That Other Corporation uses activity-based costing to compute product margins. What is the product margin for Product Q7 under activity-based costing?

User Account

All Pages

Financial statements and calculate ratios-perpetual system

Reference no: EM131791830

Reference no: EM131791830

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT