Displays Incorporated
Using the General Ledger, complete the appropriate income statement and balance sheet. After, complete the analysis.
(adjusted balances given below)
(post-closing balances given below)
Require... General General | Journal Ledger Trial Balance Income Balance Statem... || Sheet Analysis Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted or post-closing balances. Adjusted General Ledger Account Cash Debit No. Credit No. Date Dec 31 Jan 02 Jan 02 Jan 02 Jan 02 Jan 02 Accounts receivable Date Debit Credit Jan 01 Jan 02 1605,000 Jan 02 568,000 Balance 29,000 597,000 566,000 239,000 190,000 33,000 Balance 26,000 631,000 63,000 4 5 6 7 8 4 31,000 327,000 49,000 157,000 Inventory Debit Credit Supplies Debit Credit No. Date Jan 01 Jan 02 Jan 02 Jan 02 No. Date Jan 01 9 Dec 31 Balance 71,000 408,000 91,000 122,000 Balance 32,000 6,000 337,000 1 3 5 26,000 317,000 31,000 Land No. Debit Credit No. Date Jan 01 Balance 234,000 Accounts payable Date Debit Credit Jan 01 Jan 02 337,000 Jan 02 1332,000 Balance 32,000 369,000 37,000 1 6 Interest payable Debit Credit Income tax payable Debit Credit No. Date Balance No. Date Balance 10 Dec 31 1,350 1,350 11 Dec 31 25,000 25,000 L uble Common stock Notes payable Debit Credit No. No. Debit Credit Date Jan 01 Balance 27,000 Date Jan 01 Balance 193,000 Sales revenue Debit Credit Retained earnings Date Debit Credit Jan 01 No. | No. Balance 140,000 Date Jan 01 Jan 02 Balance 0 605,000 2 605,000 Sales discounts Debit Credit No. Date No. Balance 01 5,000 Cost of goods sold Date Debit Credit Dec 31 Jan 02 317,000 Balance 6 Jan 02 5,000 3 317,000 Supplies expense Debit Credit Salaries expense Debit Credit Balance No. Balance No. Date Jan 01 9 Dec 31 0 Date Dec 31 Jan 02 26,000 1 26,000 8 157,000|| 157,000 Interest expense Debit Credit Rent expense Debit | Credit No. Date No. Date Balance Balance 0 1,350 10 Dec 31 1,350 7 Jan 02 49,000 49,000 Income tax expense Debit | Credit No. Date Balance 11 Dec 31 25,000 25,000 Require... General General Trial Income Balance , Analysis Journal Ledger Balance Statem... | Sheet Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted or post-closing balances. Post-closi General Ledger Account Cash No. Debit Credit No. Balance 29,000 Accounts receivable Date Debit Credit Jan 01 Jan 02 605,000 Jan 02 568,000 Date Dec 31 | Jan 02 Jan 02 Jan 02 Jan 02 Jan 02 | Balance 26,000 631,000 63,000 568,000 4 5 6 7 8 2 4 31,000 327,000 49,000 157,000 566,000 239,000 190,000 33,000 Inventory Debit Credit Supplies Debit Credit No. Date Jan 01 Jan 02 Jan 02 Jan 02 No. Date Jan 01 9 Dec 31 Balance 71,000 408,000 91,000 122,000 Balance 32,000 6,000 337,000 1 3 5 26,000 317,000 31,000 Land No. Debit Credit No. Date Jan 01 Balance 234,000 Accounts payable Date Debit Credit | Balance Jan 01 32,000 Jan 02 337,000 369,000 Jan 02 332,000 37,000 1 6 Interest payable Debit Credit Income tax payable Debit Credit No. Date Balance No. Date Balance 0 10 Dec 31 1,350 1,350 11 Dec 31 2 5,000 25,000 No. Notes payable Debit | Credit | Balance 27,000 Date Jan 01 No. Date Jan 01 Common stock Debit Credit | Balance 193,000 Sales revenue Debit Credit Retained earnings No. Date Debit Credit Jan 01 12 Dec 31 605,000 13 Dec 31 570,350 Balance 140,000 745,000 174,650 No. Date Jan 01 2 Jan 02 12 Dec 31 Balance 0 605,000 605,000 605,000 Sales discounts Debit Credit No. Date Balance Cost of goods sold No. Date Debit Credit Dec 31 3 Jan 02 317,000 13 Dec 31 317,000 Balance 01 317,000 5 ,000 6 Jan 02 13 Dec 31 1 5,000 5,000 0 Salaries expense Debit Credit Balance Balance Supplies expense No. Date Debit Credit Jan 01 9 Dec 31 26,000 13 Dec 31 26,000 0 0 No. Date Dec 31 Jan 02 13 Dec 31 157,000 157,000 26,000 0 157,000 Rent expense Interest expense Debit Credit No.1 Date Balance No. Date | Debit Credit Balance | 01 1,350 49,000 10 Dec 31 13 Dec 31 1,350 1,350 0 7 Jan 02 13 Dec 31 49,000 49,0000 Income tax expense No. Date Debit Credit Balance 0 11Dec 31 25,000 25,000 13 Dec 31 25,0000 Require General General Trial Income Balance Journal | Ledger Balance Statem... | Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Show less A Adjusted - Displays Incorporated Income Statement For the year ended December 31, 2021 Gross profit $ Total operating expenses Operating income Trial Balance Balance Sheet > Dewin General | General | Trial | Income Balance | Journal | Ledger Analysis Balance Statem... Sheet Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post- closing balances will appear for each account, based on your selection. Show less Adjusted Displays Incorporated Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: 0 0 Total Current Assets Noncurrent Assets: Total Liabilities Stockholders' Equity Total Assets Total Stockholders' Equity Total Liabilities & Stockholders' Equity General General Trial Income Balance Require... Analysis ' |Journal Ledger Balance Statem... | Sheet Using the information from the requirements above, complete the 'Analysis'. (Calculate the ratios to the nearest 1 decimal place.) Analyze the following for Displays Incorporated: (a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $91,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume Displays Incorporated $71,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2021 of 1.2. Calculate the amount the company would report for inventory using dollar-value LIFO. Ending inventory using dollar-value LIFO: (c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) instead of FIFO in periods of rising inventory costs and stable inventory quantities. 1. Inventory turnover ratio 2. Average days in inventory 3. Gross profit ratio
