Prepare a classified balance sheet and multistep income statement using the Adju
ID: 2634756 • Letter: P
Question
Prepare a classified balance sheet and multistep income statement using the Adjusted Trial Balance for ABC Corporation as of and for the year ended December 31, 2010.
Debits Credits
Accounts Payable 11,000
Accounts Receiveable 8,000
Accumulated Depreciation- Buildings 60,000
Accumulated Depreciation= Equipment 5,000
Additional Paid-in Capital 5,000
Allowance for Doubtful Accounts 1,200
Bonds Payable 25,000
Buildings 180,000
Cash 14,000
Common Stock 10,000
Cost of Goods Sold 72,000
Depreciation Expense 10,500
Dividends 5,000
Equipment 15,000
Insurance Expense 6,000
Interest Expense 1,200
Interest Revenue 500
Inventory 5,000
Notes Payble (due 2013) 15,000
Patents 3,000
Prepaid Expenses 3,000
Rent Expense 18,000
Retained Earnings 32,150
Salaries Expense 45,000
Sales 225,000
Supplies 750
Unearned Revenues 400
Utilities Expense 4,800
= 390,250 = 390,250
Explanation / Answer
Debit Credit Accounts Payable 11000 Accounts Receiveable 8000 Accumulated Depreciation- Buildings 60000 Accumulated Depreciation= Equipment 5000 Additional Paid-in Capital 5000 Allowance for Doubtful Accounts 1200 Bonds Payable 25000 Buildings 180000 Cash 14000 Common Stock 10000 Cost of Goods Sold 72000 Depreciation Expense 10500 Dividends 5000 Equipment 15000 Insurance Expense 6000 Interest Expense 1200 Interest Revenue 500 Inventory 5000 Notes Payble (due 2013) 15000 Patents 3000 Prepaid Expenses 3000 Rent Expense 18000 Retained Earnings 32150 Salaries Expense 45000 Sales 225000 Supplies 750 Unearned Revenues 400 Utilities Expense 4800 Total 391250 390250 Multiple Income Statement Amount Amount Sales Revenue: $ 225,000 Less: Cost of Goods Sold: $ 72,000 Gross Profit $ 153,000 Operating Expenses Utilities Expense $ 4,800 Depreciation Expense $10,500 Insurance Expense $ 6,000 Salaries Expense $45,000 Rent Expense $18,000 Supplies Expense $ 750 Total Operating Expenses $85,050 $ 85,050 Other Income Interest expense $ 1,200 Interest Income $ (500) Total other income $ 700 $ 700 Net Income $ 67,250 Balance Sheet Liabilities Amount Amount Asset Amount Amount Additional Paid-in Capital $ 5,000 Buildings $ 180,000 Common Stock $ 10,000 Less:Accumulated depreciation $ 60,000 Unearned Revenues $ 400 $ 120,000 $ 120,000 Accounts Payable $ 11,000 Bonds Payable $ 25,000 Equipment $ 15,000 Notes Payble (due 2013) $ 15,000 Less:Accumulated depreciation $ 5,000 Retained Earnings $32,150 $ 10,000 $ 10,000 Add:Net Income $67,250 Accounts Receiveable $ 8,000 $99,400 Less: Allowance for Doubtful Accounts $ 1,200 Less: Dividend $ 5,000 Cash $ 14,000 $94,400 $ 94,400 Patents $ 3,000 Prepaid Expenses $ 3,000 Inventory $ 5,000 $ 160,800 $ 155,000