Prepare the worksheet, income statement, statement of owner\'s equity and balanc
ID: 2429589 • Letter: P
Question
Prepare the worksheet, income statement, statement of owner's equity and balance sheet using the following information.
Account Balances of Cross Lumber
a./b. Merchandise inventory, Dec. 31 $4700
c. Lumber supplies on hand, Dec. 31 $75
d. Insurance expired $120
e. Depreciation for the year $210
f. Accrued wages on Dec. 31 $135
Account No. 110 Cash 1300 111 Accounts Receivable 1280 112 Merchandise Inventory 4300 113 Lumber Supplies 267 114 Prepaid Insurance 209 121 Lumber Equipment 3300 122 Acc. Dep. Lumber Equipment 530 220 Accounts Payable 1200 221 Wages Payable - 330 J. Cross, Capital 5761 331 J. Cross, Withdrawls 2700 332 Income Summary - 440 Sales 23200 441 Sales Returns and Allowances 230 550 Purchases 14500 551 Purchases Discount 325 552 Purchases Returns and Allowances 340 660 Wages Expense 2120 661 Advertising Expense 370 662 Rent Expense 780 663 Dep. Exp., Lumber Equipment - 664 Lumber Supplies Expense - 665 Insurance Expense -Explanation / Answer
CROSS LUMBER Income Statement For the Period Ended Dec 31 Sales Revenue Sales 23,200.00 Less: Sales Return and Allowances 230.00 Net Sales 22,970.00 Cost of Goods Sold: Purchases 14,500.00 Less: Purchases Discount 325.00 Less: Purchases Return and Allowances 340.00 Net Purchases 13,835.00 Add: Beginnig Inventory 4,300.00 Cost of Goods Available for Sale 18,135.00 Less: Ending Inventory 4,700.00 Cost of Goods Sold 13,435.00 Gross Profit 9,535.00 Selling & Admn. Expenses Wages Expense ($2,120 + $135) 2,255.00 Advertising Expense 370.00 Rent Expense 780.00 Depreciation Expense - Lumber Equipment 210.00 Lumber Supplies Expense ($267 - $75) 192.00 Insurance Expense 120.00 3,927.00 Net Income 5,608.00 CROSS LUMBER Statement of Owners' Equity For the Period Ended Dec 31 J. Cross, Capital - Beginning Balance 5,761.00 Net Income 5,608.00 J. Cross, Withdrawls (2,700.00) Net Increase (Decrease) in Net Income 2,908.00 J. Cross, Capital - Ending Balance 8,669.00 CROSS LUMBER Balance Sheet Dec 31 Assets Current Assets Cash 1,300.00 Accounts Receivable 1,280.00 Merchandise Inventory 4,700.00 Lumber Supplies 75.00 Prepaid Insurance ($209 - $120) 89.00 7,444.00 Property, Plant & Equipment Lumber Equipment 3,300.00 Less: Acc. Dep. Lumber Equipment 740.00 2,560.00 Total Assets 10,004.00 Liabilities & Owners' Equity Liabilities Current Liabilities Accounts Payable 1,200.00 Wages Payable 135.00 1,335.00 Total Liabilities 1,335.00 Owners' Equity J. Cross, Capital 8,669.00 Total Liabilities & Owners' Equity 10,004.00