Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16 The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: 1.47 points Account Title

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
16 The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: 1.47 points Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $175,000 138,000 $ 24,500 451,000 108, eee 515,000 116,500 Tile, Etc. had the following transactions in 2018: 1. Purchased merchandise on account for $645,000. 2. Sold merchandise that cost $485,000 for $1,020,000 on account. 3. Sold for $310,000 cash merchandise that had cost $186,000. 4. merchandise for $255,000 to credit card customers. The merchandise had cost $122.000. The credit card company charges a 3 percent fee. 5. Collected $750,000 cash from accounts receivable. 6. Paid $675,000 cash on accounts payable. 7. Paid $158,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $63,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity. 10. Wrote off $8,800 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9). Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for 2018 16 Res question RA Ne 31 Reg 2 Reg 14 po Organize the transaction data in accounts under an accounting equation (ster any decreases to account balances with a minus in If there is no effect on the Accounts Titles for and Earnings, leave the TILE, ETC., INC Horizontal Statement Model Event Equity Accounts Allowance Merchandise Notes Account Retained Earning Received Payable Earning 138.000 . 47500 - OC DE . 350.000 0- 1.020,000 o 0. 545.000 0485.000 (185000 1122 000) 0 Ja o 00 0. - DB . 5 (750.000 6 7 8 o 00 750.000 75.000 (158,000) 27350 163.000 o. 0 0- De 9 10 11a o 3.000 O. O + (13.3001 - O. 0 o 303 000 586,350 137,800 0 D Req 81 > Check my work mode : This shows what is 6 Complete this question by entering your answers in the tabs below Req A Req B1 Req B2 Reg B3 Req B4 Prepare an income statement for 2018. TILE, ETC., INC. Income Statement For the Year Ended December 31, 2018 Sales revenue (793,000) Cost of goods sold Gross margin Operating expenses 0 Total operating expenses Operating income Add: Non-operating items Net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting Information For Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

7th Edition

1259726703, 9781259726705

More Books

Students also viewed these Accounting questions

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

What is the average age of members of your key public?

Answered: 1 week ago

Question

How likely is this public to act on information it receives?

Answered: 1 week ago

Question

What does this public think about your organization?

Answered: 1 week ago