Bobcat Coffee had sales of goods totaling $200,000, receiving $150,000 in cash and $50,000 on account The cost of the goods sold were $60,000 Bobcat Coffee purchased $80,000 of inventory All purchases were on account Bobcat Coffee paid salaries of $50,000 This was payment for salaries of $35,000 and $15,000 that was payable from last year Bobcat Coffee purchased $7,000 of supplies All of these purchases were on account Bobcat Coffee received $40,000 cash from customers who had been granted credit The entire amount collected relates to sales from last year Bobcat Coffee paid utilities for the current month of $5,000 Bobcat Coffee paid $45,000 to its suppliers related to previous purchases on account Bobcat Coffee paid $12,000 in rent for the year Bobcat Coffee incurred depreciation expense for the year on old equipment $2,000 After counting its supplies on hand, Bobcat Coffee determined that they had $6,000 in supplies on hand Hint What is the amount of supplies that has been used in the month What journal entry needs to be prepared $9,000 of prepaid insurance expired Bobcat Coffee paid $300 of interest on its long term debt Bobcat Coffee incurred $17,000 of salaries expense in December, but will pay this amount next month (January) Bobcat Coffee declared and paid $4,000 in cash dividends Bobcat Coffee bought a new piece of equipment for $50,000 Bobcat coffee financed the equipment with a note from the bank The equipment purchased has a 10 year useful life and no expected salvage value Depreciation is calculated on a straight line basis Bobcat Coffee pre sold $3,000 of coffee in December 20x4 to a customer for a week long conference scheduled for January 20X5 The customer paid upfront for the large order a month ahead of time (December) to secure the order The coffee was then delivered as planned for the conference in January REQUIRED b Statement of Retained Earnings c Balance Sheet 11 33 PM Fri Mar 6 57 X Bobcat Coffee Review Problem (1) docx Beginning Balance Sheet Bobcat Coffee Balance Sheet December 31, 20x3 Assets Current Assets Cash Accounts Receivable $ 12,000 8,000 10,000 2,000 Prepaid Insurance Supplies Inventory 30,000 $ 62 000 Total Current Assets Property Plant Equipment Land Equipment Accumulated Depreciation $ 81,500 100,000 130,000) Total PPE $ 138,000 $213 500 Total Assets Liabilities Stockholders' Equity Current Liabilities Accounts Payable Salaries Payable $5,000 15 000 Total Current Liabilities $ 20,000 $ 100,000 Long Term Debt Stockholders' Equity Retained Earnings $ 38,500 55 000 Common Stock Total Stockholders' Equity Total Liabilities Stockholders' Equity $ 93,500 $ 213 500 Edit in Google Docs

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 17, 2024

Bobcat Coffee had sales of goods totaling $200,000, receiving $150,000 in cash and $50,000 on account. The cost of the goods sold were $60,000. Bobcat

Bobcat Coffee had sales of goods totaling $200,000, receiving $150,000 in cash and $50,000 on account. The cost of the goods sold were $60,000.
Bobcat Coffee purchased $80,000 of inventory. All purchases were on account.
Bobcat Coffee paid salaries of $50,000. This was payment for salaries of $35,000 and $15,000 that was payable from last year.
Bobcat Coffee purchased $7,000 of supplies. All of these purchases were on account.
Bobcat Coffee received $40,000 cash from customers who had been granted credit. The entire amount collected relates to sales from last year.
Bobcat Coffee paid utilities for the current month of $5,000.
Bobcat Coffee paid $45,000 to its suppliers related to previous purchases on account.
Bobcat Coffee paid $12,000 in rent for the year.
Bobcat Coffee incurred depreciation expense for the year on old equipment $2,000.
After counting its supplies on hand, Bobcat Coffee determined that they had $6,000 in supplies on-hand. [Hint: What is the amount of supplies that has been used in the month? What journal entry needs to be prepared?]
$9,000 of prepaid insurance expired.
Bobcat Coffee paid $300 of interest on its long-term debt.
Bobcat Coffee incurred $17,000 of salaries expense in December, but will pay this amount next month (January).
Bobcat Coffee declared and paid $4,000 in cash dividends.
Bobcat Coffee bought a new piece of equipment for $50,000. Bobcat coffee financed the equipment with a note from the bank.
The equipment purchased has a 10 year useful life and no expected salvage value. Depreciation is calculated on a straight-line basis.
Bobcat Coffee pre sold $3,000 of coffee in December 20x4 to a customer for a week-long conference scheduled for January 20X5. The customer paid upfront for the large order a month ahead of time (December) to secure the order. The coffee was then delivered as planned for the conference in January.

REQUIRED:

b. Statement of Retained Earnings

c. Balance Sheet

11:33 PM Fri Mar 6 57% X Bobcat Coffee Review Problem (1).docx Beginning Balance Sheet Bobcat Coffee Balance Sheet December 31, 20x3 Assets Current Assets Cash Accounts Receivable $ 12,000 8,000 10,000 2,000 Prepaid Insurance Supplies Inventory 30,000 $ 62.000 Total Current Assets Property Plant & Equipment Land Equipment Accumulated Depreciation $ 81,500 100,000 130,000) Total PPE $ 138,000 $213.500 Total Assets Liabilities & Stockholders' Equity Current Liabilities Accounts Payable Salaries Payable $5,000 15.000 Total Current Liabilities $ 20,000 $ 100,000 Long Term Debt Stockholders' Equity Retained Earnings $ 38,500 55.000 Common Stock Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 93,500 $ 213.500 Edit in Google Docs