Prepare a multiple step income statement based on the followingaccount balances:Sales$1,300,000Allowance for doubtful accounts 45,000Bad debt expenseBeginning inventoryEnding inventoryDepreciation expenseDividends declaredFreight inFreight outPrepaid insurancePurchasesPurchase returnsPurchase discountsRent expenseSalary expenseSales returnsSales discounts20,00018,000Loss from discontinued operations 80,000Loss from earthquake damage 22,000Loss from sale of Available for Sale securities 7,000Lottery winnings30,00040,00030,000Income tax rate90,00020%25,000Unrealized loss from Available for Sale securities 42,000Unrealized gain from Trading securities 25,000Unearned rent revenue15,00050,00025,000600,00020,00010,000100,000240,00020,0008,000

Income Statement - The income Statement includes Revenue earned and Expenses incurred during the…

Prepare a multiple step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense 30,000 40,000 Beginning inventory Ending inventory 30,000 Depreciation expense Dividends declared Freight in Freight out Lottery winnings Prepaid insurance Purchases 20,000 18,000 Loss from discontinued operations 80,000 Loss from earthquake damage 22,000 Loss from sale of Available for Sale securities 7,000 Purchase returns Purchase discounts Rent expense Salary expense Sales returns Sales discounts 90,000 Income tax rate 25,000 20% 50,000 25,000 600,000 20,000 10,000 100,000 240,000 Unrealized loss from Available for Sale securities 42,000 Unrealized gain from Trading securities 25,000 Unearned rent revenue 15,000 20,000 8,000

Prepare a multiple step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense 30,000 40,000 Beginning inventory Ending inventory 30,000 Depreciation expense Dividends declared Freight in Freight out Lottery winnings Prepaid insurance Purchases 20,000 18,000 Loss from discontinued operations 80,000 Loss from earthquake damage 22,000 Loss from sale of Available for Sale securities 7,000 Purchase returns Purchase discounts Rent expense Salary expense Sales returns Sales discounts 90,000 Income tax rate 25,000 20% 50,000 25,000 600,000 20,000 10,000 100,000 240,000 Unrealized loss from Available for Sale securities 42,000 Unrealized gain from Trading securities 25,000 Unearned rent revenue 15,000 20,000 8,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

See similar textbooks

Similar questions

Current Attempt in Progress Aspect Ltd has the following balance sheet figures. The current ratio is: Total current assets $450 000 Total current liabilities Inventory Bank overdraft O 2:1. O 1.67:1. 3.75:1. 3:1. Save for Later 150 000 200 000 30 000
Use this information to Prepare a multiple-step income statement with earnings per sharedisclosure Denver Co. 12/31/2022 Debits CreditsPartial Trial Balance DataSales revenue 700,000Interest revenue 60,000Salary payable 15,000Gain on sale of land 110,000Patent 15,000Supply inventory 25,000Cost of goods sold 500,000Salary expenses 150,000Common stock 250,000Retained earnings 150,000Cash 250,000Office expense 100,000Denver's business segment, Division A, was sold at a pretax loss of 25,000 on July 1, 2022. Ithad earned a $13,000 pretax operating income from January 1, 2022 to the disposal date. Denverhad 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet beenaccrued. The effective tax rate is 30%. dont give me handwritten answers thank you
Based upon the information given below, calculate the following: Current ratio Acid test Accounts receivable turnover ratio Cash ratio Inventory turnover EPS Total asset turnover Debt ratio Debt-to-equity ratio Times interest earned ROI Net profit margin ROE Market price/Book value P/E Average Collection Period BALANCE SHEET ASSETS LIABILITIES & STOCKHOLDERS EQUITY Cash $ 1,500 Accounts payable $12,500 Marketable securities 2,500 Notes payable 12,500 Accounts receivable 15,000 Total…
Based upon the information given below, calculate the following: Cash ratio Inventory turnover EPS Total asset turnover Debt ratio Debt-to-equity ratio Times interest earned ROI Net profit margin ROE Market price/Book value P/E Average Collection Period BALANCE SHEET ASSETS LIABILITIES & STOCKHOLDERS EQUITY Cash $ 1,500 Accounts payable $12,500 Marketable securities 2,500 Notes payable 12,500 Accounts receivable 15,000 Total current liabilities $25,000 Inventory 33,000 Long-term…
Using these data from the comparative balance sheets of Bonita Company, perform a vertical analysis. Accounts receivable (net) Inventory Total assets (Round percentages to 1 decimal place, e.g. 12.1%.) Accounts receivable (net) Inventory Total assets Amount $435.960 December 31, 2022 December 31, 2021 $422,800 720.720 2.520,000 $435.960 December 31, 2022 720.720 2,520.000 Percentage 624,400 2,800,000 Amount $422,800 624,400 2.800,000 December 31, 2021 Percentage % 8
Calculate the activity and liquidity ratios for P for the year ended 31 December 20X9. Revenue Gross profit Inventory Trade receivables Trade payables Cash Short-term investments Other current liabilities $m 1,867.5 489.3 147.9 393.4 275.1 53.8 6.2 284.3 Current ratio= Current assets Current liabilities Inventory days Inventory days = inventory+ cost of sales × 365 Receivable days Receivable days - receivables + credit sales x 365 Payable days Payable days = payables ÷ credit purchases x 365.
Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Current liabilities Multiple Choice O O O 2.76. 0.91. 1.10. 2.67. 1.63. $ 42,250 59,180 79,500 115,000 9,700 111,000
The following financial results are shown for Smith, Inc. and Jones, Inc. RatiosSmith, Inc.Jones, Inc.Current ratio2.31.9Acid test ratio1.2.9Accounts receivable turnover8.4 times6.8 timesInventory turnover4.7 times3.1 timesDays sales in inventory64 days799 daysDays sales uncollected34.2 days39.7 daysProfit margin ratio3.2% 4.8% Total asset turnover1.11.8 Return on common stockholder' equity 4.6 %6.1% Price earnings ratio18.310.7Dividend yield.89%.90Debt ratio.62.47Times interest earned2.6 times6.2 times From the above financial data, prepare two separate memos. In the first memo, determine which of the two companies would be the better short-term credit risk and explain why. In the second memo, determine which of the two companies the better investment is and explain why. Your explanations must mention the exact ratios and numbers compared to support your choice. ******Answers and memos must be logically written and no grammatical errors.******* Memo #1: The company I selected as the…
Directions: Below is the summarized financial information of Redz Company. Compute the following. Write your answers on a separate sheet of paper. 1. Average Inventory Average Receivable Average Payable Inventory Turnover Ratio Days of Inventories Receivables Turnover Ratio Days of Receivable Payables Turnover Ratio 2. 3. 4. 3. 6. 785 7. 8. 9. Days of Payable 10. Operating Cycle Beginnine. Php 2.000,000.00 Php 1,150.000.00 Php 300.000,00 Php 10,000,0000,00 Php 6,5 00.000.00 Ending Php 3.100,000.00 Php 2.000,000.00 Php 18 00.000.00 Accounts Inventory Accournts Receivable Accouits Paynble Net Sales Cost of CGoods9 Sold
Using these data from the comparative balance sheets of Concord Company, perform a vertical analysis. Accounts receivable (net) Inventory Total assets (Round percentages to 1 decimal place, e.g. 12.1%.) December 31, 2022 December 31, 2021 $418,320 $425,250 816,720 787,500 2,490,000 3,150,000 December 31, 2022 December 31, 2021 Amount Percentage Amount Percentage Accounts receivable (net) $418,320 % $425,250 % Inventory Total assets 816,720 % 787,500 % 2,490,000 % 3,150,000 %
Use the following data to create a complete income statement. All accounts must be correctly labeled and arranged in the proper order. Sales $675,000 Cost of good sold $405,000 $75,000 $20,000 $154,000 General and Administrative expenses Depreciation expense Bonds Interest Rate Tax Rate 3% 25%
Use the below information to answer the following question. Sales Cost of goods sold Depreciation Income Statement For the Year Taxable income Taxes Earnings before interest $4,500 and taxes Interest paid Net income Dividends $900 Balance Sheet End-of-Year Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets Accounts payable Long-term debt Common stock ($1 par value) Retained earnings O O O O Total Liab. & Equity 33 percent 40 percent 50 percent $28,400 60 percent 21,200 2,700 67 percent 850 $3,650 1,400 $2,250 $550 2,450 4,700 $7,700 What was the retention ratio? 16,900 $24,600 $ 2,700 9,800 8,000 4,100 $24,600