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As the accountant for Innovation, Inc. it is your job to prepare the company's INCOME STATEMENT and BALANCE SHEET. Use the accounts listed below to
As the accountant for Innovation, Inc. it is your job to prepare the company's INCOME STATEMENT and BALANCE SHEET. Use the accounts listed below to construct the state- ments. Assume that the tax rate is 33 percent. List of Accounts for Innovation, Inc. Accounts Receivable $30,000 Land $275,000 Notes Receivable $11,000 $10,000 $8,000 Insurance Expense SAccounts Payable Interest Expense Common Stock $5,000 $320,000 Net Sales $180,000 $21,500 $148,500 Ending Inventory Notes Payable (Long Term) Beginning Inventory Retained Earnings Advertising Expense Cash Marketing Salaries Notes Payable (Current) Merchandise Purchased $26,000 $245,000 $15,000 $20,000 $35,000 $3,500 $55,000 Buildings $250,000 Rent $2,500 Utilities $1,500 $115,000 Equipment & Vehicles $15,000 Goodwill Bonds Payable $12,500 Innovation, Inc. Income Statement Innovation, Inc. Balance Sheet REVENUES Net Sales s ASSETS Current Assets Fixed Assets Other Assets TOTAL ASSETS 16. A) $75,200 B) $82,500 17. A) $530,000 B) S640,000 18. A) $15,000 B) S.6,500 $ S COST OF GOODS SOLD Beginning Inventory Merchandise Purchased Cost of Goods Available for Sule Less: Eading lovestory Cost of Goods Sold S 5 10. Al 582.000 B) 581,000 S S LIABILITIES & OWNER' EQUITY Current Liabilities Long-Term Liabilities Owner's Equity 19. A) 513,200 B) S11,500 20. A SLSL000 B) S106,000 21. Al $565.000 B) S435,000 GROSS PROFIT (GROSS MARGIN) S 11. A) SI12,5X) B) $120,500 TOTAL LLABILITIES & OWNER'S EQUITY OPERATING EXPENSES Marketing Expenses Marketing Salncies Advertising Total Marketing Expenses Compute the set income, using FIFO and LIFO and the following information: Beginning Inventory 26,000 units @ $25.00 Purchases (now inventory 26,000 units $30.00 Sales: 26.000 units @ $65.00 Tax Ratc 33% FIFO LIFO REVENCE (22) (22) General Expenses Insurance Expense S Interest Expense Reat Utilities Total General Expenses COST OF GOODS SOLI) (24) Tatal Operating Expenses S 12. A) $19,000 BI $22.000 S 13. AJ $68,(XIO 13) $69.CICIO S INCOME BEFORE TAXIS (25) (26) NET PROFIT (INCOME) BEFORE TAXES TAXES or 33% (27) (28) Less: Income Tax Expease S 14. AS15,995 B $16.995 NET INCOME (29) NET INCOME (PROFIT) AFTER TAXES S 15. AJ $35.XIO H) 884.50S
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