
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
INCOME STATEMENT, STATEMENT OF OWNER'S EQUITY, AND
Balance on page 600 for the year ended December 31, 20--. Owner's
equity as of January 1, 20--, was $504,320. The current portion of Note
Payable is $2,000.
REQUIRED
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet.

Transcribed Image Text:PROBLEM 15-8A
A
Paulson's Pet Stone
End-of-Parlod Spreadshoet (Partial)
December 31, 20–
4
ADJUSTED TRAL BALANCE
ACCOUNT E
5
DEBIT
CREDIT
6 Cash
7 Accounts Recelvable
8 Merchandise Invertory
9 Estimated ReturnsInventory
23,440.00
9,360.00
64,800.00
1,200.00
10 Supplies
11 Prepaid Insurance
2,400.00
1,800.00
12 Land
90,000.00
13 Building
14 Accum. Depr-Bulding
15 Slore Equipment
16 Accum. Depr.–Rtore Equipment
17 Accounts Payable
350,000.00
20,000.00
120,000.00
3,600.00
9,560.00
18 Customer Retunds Fayable
19 Wages Payable
20 Sales Tax Payable
1,600.00
1,200.00
21 Nole Payable
22 B. Paulson, Capital
3,440.00
16,000.00
534,320.00
23 B. Paulson, Drawing
24 KUne Summary
4800 00
59,200.00
64,800.00
1,200.00
25
800 00
26 Sales
326,040.00
27 Sales Retums and Alowances
5,360.00
28 Purchases
162,640.00
4,080.00
3,200.00
29 Purchases Retums and Alcwance
30 Purchases Discunis
1,600.00
31 freight-in
32 Wages Expense
33 Advertising Eperse
34 Supples Expense
35 Phone Expense
36 Utities Expense
37 Insurance Expense
38 Depr. Expense-Bui dng
9,400.00
1,200.00
800.00
2,736.00
2,864.00
1,600.00
10,000.00
39 Depr. Expense-Equipment.
40 Mixellaneous Expense
41 Interest Expense
1,800.00
600.00
640.00
42
989,040.00
989,040.00
43
321,240.00
399,320.00
44 Net Income
78,080.00
45
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Percent of sales method At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,350,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ X Allowance for Doubtful Accounts $ X Bad Debt Expense $ X c. Determine the net realizable value of accounts receivable. < $ Xarrow_forwardAccounting for uncollectible accounts (aging-of-receivables method), notes receivable, and accrued interest revenue Sleepy Recliner Chairs completed the following selected transactions: Record the transactions in the journal of Sleepy Recliner Chairs. Explanations are not required. (Round to the nearest dollar.)arrow_forwardPlease help mearrow_forward
- Provide the answer is correct optionarrow_forwardRecord journal entries for the following purchase transactions of Flower Company. Oct. 13 Purchased 81 bushels of flowers with cash for $1,300. Oct. 20 Purchased 220 bushels of flowers for $30 per bushel on credit. Terms of the purchase are 5/10, n/30, invoice dated October 20. Oct. 30 Paid account in full from the October 20 purchase. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Oct. 13 Oct. 20 Oct. 30 Accounts Receivable Accounts Payable Cost of Goods Sold Cash Sales Returns and Allowances II III II IIarrow_forwardAnalysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $835,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,760,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $32,300. a. Determine the amount of the adjusting entry for uncollectible accounts.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5arrow_forward
- Please helparrow_forwardAnalysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $545,000; Allowance for Doubtful Accounts has a credit balance of $5,000; and sales for the year total $2,450,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $22,500. a. Determine the amount of the adjusting entry for uncollectible accounts.$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $ c. Determine the net realizable value of accounts receivable.$arrow_forwardOn June 1, Nicholson Company purchased inventory on account with a cost of $1,200. Credit terms were 2/10, net 30. On June 2, Nicholson Company returned 60 percent of the inventory. Nicholson Company uses the perpetual inventory system. What journal entry did Nicholson Company prepare on June 2? A. debit Accounts Payable for $720 and credit Inventory for $720 B. debit Purchase Returns for $1,200 and credit Accounts Payable for $1,200 C. debit Purchase Returns for $720 and credit Accounts Payable for $720 D. debit Cash for $1,200 and credit Accounts Payable forarrow_forward
- On December 31 of last year, the balance sheet of Union Company had accounts receivable of $74,5000 and a credit balance in Allowance for Uncollectible Accounts of $5,075. During the current year, Union's financial records included the following selected activities: Sales on accounts $298,750 Sales returns and allowances, $18,250 Collections from customers, $287,500 Accounts written off as worthless, $4,000 1) Prepare T accounts for Accounts receivable and Allowance for uncollectible accounts. Enter the beginning balances and show the effects on these accounts of the items listed above. Determine the ending balance of each account.arrow_forwardThe following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) Allowance for doubtful accounts $121,000 5,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 5/10, n/30 (assume a unit sales price of $600 in all transactions). Transactions during current year: a. Sold merchandise for cash, $260,000. b. Sold merchandise to R. Smith; invoice price, $8,500. c. Sold merchandise to K. Miller; invoice price, $40,000. d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. e. Sold merchandise to B. Sears; invoice price, $22,000. f. R. Smith paid his account in full within the discount period. g. Collected $90,000 cash from customer sales on credit in prior year, all within the discount periods. h. K. Miller paid the invoice in (c) within the discount…arrow_forwardCalculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $110 and the following activity. (Round your answer to the nearest cent.)arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education