ACC 211 Chapter 10 Assignment – Review Problem | Complete Solution
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ACC 211 Chapter 10 Assignment – Review Problem
Name ______________________________________________ Date _________________
There is one problem with multiple parts that deal with preparation of financial statements that we covered either in chapter 4 (multi-step income statement) or chapters 2 & 3 (statement of retained earnings and classified balance sheet). Total assignment is worth 35 points.
P1.
Charlotte Company’s adjusted trial balance on December 31, 2013, follows.
Debit Credit
Cash $20,000
Accounts Receivable 35,000
Prepaid expenses 10,000
Supplies 8,000
Merchandise inventory . . . . . . . . . . . 43,000
Equipment . . . . . . . 184,000
Patent 20,000
Accumulated Depreciation - Equip 70,000
Accounts payable 20,000
Salaries payable 8,000
Taxes payable 4,000
Interest payable 1,000
Note Payable (long term) . . . . . . . . . . . . . . 75,000
Common stock . . . . . . . . . . . . . . . . 100,000
Retained earnings 20,000
Dividends paid . . . . . . . . . . . . 8,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Sales discounts . . . . . . . . . . . . . . . . . 4,000
Sales returns and allowances . . . . . . . 10,000
Cost of goods sold . . . . . . . . . . . . . . 120,000
Sales salaries expense . . . . . . . . . . . . 45,000
Rent expense— Selling space . . . . . . . 15,000
Store supplies expense . . . . . . . . . . . . 3,000
Advertising expense . . . . . . . . . . . . . . 25,000
Office salaries expense . . . . . . . . . . . . 40,000
Rent expense— Office space . . . . . . . 6,000
Office supplies expense . . . . . . . . . . . 2,000
Totals . . . . . . . . . . . . . . . . . . . . . . . . $ 598,000 $ 598,000
Required.
Part 1. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. Check figure: Net income should be $30,000. (15 points total).
CHARLOTTE COMPANY
Income Statement
For Year Ended Dec 31, 2013
Part 2. Prepare a statement of retained earnings for the same year ended Dec 31, 2013. Retained earnings at the beginning of the year was $20,000. Check figure: Ending retained earnings as of Dec 31, 2013 should be $42,000. (5 points)
CHARLOTTE COMPANY, inc
Statement of Retained Earnings
For Month Ended Dec 31, 2013
Part 3. Prepare a classified balance sheet as of December 31, 2013 for the same company. Check figures: Total current assets should be $116,000 and total assets should be $250,000. (15 points)
CHARLOTTE COMPANY
Balance Sheet
December 31, 2013
[Solved] ACC 211 Chapter 10 Assignment – Review Problem | Complete Solution
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ACC 211 Chapter 10 Assignment – Review Problem | Complete Solution
ACC 211 Comprehensive Problem 5: Perfect Pies (Excel File 100% Graded)
We Bake Perfect Pies Company makes fruit pies using a process cost system. The dough is made in the mixing department and then moves to the rolling department where crusts are rolled and placed into baking pans. ...
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