Prepare an income statement and a statement of changes to retained earnings for
ID: 2596650 • Letter: P
Question
Prepare an income statement and a statement of changes to retained
earnings for the year ended December 31, 20xx in good form. Prepare a
classified balance sheet for Dec 31, 20xx.
10,000 Maniacs Company
Trial Balance
December 31, 20xx
Debits Credits
Cash $5
Accounts Receivable $75
Allowance for Bad Debts $8
Inventory $25
Prepaid Expenses $18
Supplies $2
Equipment $120
Building $350
Accumulated Depreciation $110
Land $200
Investments in Stock held Long-Term $55
Trademark & Logo $3
Accounts Payable $20
Salaries Payable $65
Notes Payable (Due in 10 years) $180
Common Stock $20
Paid-In Capital in Excess of Par $150
Retained Earnings $80
Dividends Declared $12
Sales $880
Cost of Goods Sold $235
Salaries Expense $165
Research & Development Expense $25
Marketing Expenses $55
Depreciation Expense $35
Administrative Expenses $13
Taxes Expense $40
Interest Expense $22
Loss for Hurricane Damage $95
Gain from sale of Investments $37
Totals $1,550 $1,550
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5
Thrillanova Co. has two employees. Cain worked 45 hours during the current
payroll period. Cain earns $20 an hour and gets time and half for OT. Cain
has year to date earnings of $112,700 before the current payroll period.
Withhold $100 from Cain’s earnings for federal income taxes. Able is paid an
annual salary of $104,000. Able worked 60 hours during the week but is not
entitled to OT. Able has year to date earnings of $5,500 before the current
payroll period. Withhold $300 from Able’s earnings for federal income taxes.
Explanation / Answer
Please post independent questions separately. Thank you.
10,000 Maniacs Company Income Statement For the Year Ended December 31, 20xx Sales 880 Cost of goods sold 235 Gross profit 645 Less Operating expenses: Salaries expense 165 Research and development expense 25 Marketing expenses 55 Depreciation expenses 35 Administrative expenses 13 Total operating expenses 293 Operating income 352 Other incomes and expenses: Gain from sale of investments 37 Interest expense -22 Loss for hurricane damage -95 -80 Income before income taxes 272 Income taxes 40 Net income $ 232