Preparing income statementnbsp and retained earnings

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Reference no: EM13356102

Preparing income statement and retained earnings statement and balance sheet and calculate certain ratios required by the image file details.

From the attached information prepare: a multi-step income statement, a basic retained earnings statement and a classified balance sheet for:

The Crows Nest
For the year ended December 31st

Additional Data

Accounts Receivable Balance--Jan 1 was $32,400
Merchandise Inventory Balance --Jan 1 was $64,800
Accounts Payable Balance--Jan 1 was $24,777
Monthly Mortgage Payments are $550
Retained Earnings Balance--Jan 1 was $43,933
The stock had a par value of $10; 10,000 shares are authorized
Current Market Price of Stock is $34.50

In addition to the three statements, compute two ratios from each of the ratio categories covered in Class/shown on the handout.

Adjusted Trial Balance

Title: Credit	Debit
(Acc. #)133 Acc. Depr-Building	$8,640
135 Acc. Depr- Delivery Equipt	$9,450
137 Acc. Depr. Office Equipt	$5,000
212 Accounts Payable	$25,683
114 Accounts Receivable	$35,300
614 Advertising Expense	$10,000
132 Building	$20,650
111 Cash	$10,360
311 Common Stock	$50,000
134 Delivery Equipt.	$18,400
613 Delivery Expense	$5,700
617 Depr. Expense Building	$2,600
618 Depr. Expense- Delivery Equipt	$5,200
624 Depr. Expense- Office Equipt	$2,200
313 Dividends	$ 20,000
512 Freight-In	$8,236
315 Income Summary	$4,400
214 Income Tax Payable	$3,381
619 Income Taxes	$3,381
622 Insurance Expense- General	$4,200
615-Insurance Expense- Selling	$1,600
811-Interest Expense	$2,631
711- Interest Income	$1,400
121-Land for future Use	$5,000
131- Land (currently in use)	$4,500
115-Merchandise Inventory	$60,400
221-Mortgage Payable	$17,800
211 Notes Payable	$15,000
113 Notes Receivable	$8,000
136 Office Equipt	$8,600
623 Office Salaries Expense	$26,900
118 Office Supplies	$636
625 Office Supplies Expense	$1,204
312 Paid In -Excess of Par	$6,619
116 Prepaid Insurance	$ 6,600
511 Purchases	$168,624
512 Purchases Discounts	$1,400
513 Purchases Returns	$600
612 Rent Expense	$5,600
314 Retained Earnings	$43,933
213 Salaries Payable	$2,000
411 Sales	$297,156
412 Sales Discounts	$3,200
413 Sales Returns	$6,300
611 Sales Salary Expense	$22,500
112 Short Term Investment	$2,000
117 Store Supplies	$1,060
616 Store Supplies Expense	$1,540
141 Trademarks	$500

$488,062	$488,062

Reference no: EM13356102

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