Income Statement, Retained Earnings Statement, and Balance Sheet

The following information relates to Ashton Appliances for the current year.

Accounts payable	$16,800		Income taxes expense	$16,650
Accounts receivable	69,900		Income taxes payable	12,000
Accumulated depreciation (building)	104,800		Insurance expense	36,610
Accumulated depreciation (furniture)	27,600		Interest expense	15,500
Bonds payable (due in 7 years)	192,000		Inventory	59,850
Building	300,000		Other assets	92,800
Cash	41,450		Rent expense (store equipment)	80,800
Common stock	243,610		Retained earnings, January 1	54,000
Cost of goods sold	511,350		Salaries expense	228,710
Depreciation expense (building)	11,050		Salaries payable	7,190
Depreciation expense (furniture)	12,000		Sales revenue	948,670
Furniture	130,000

Required:

Question Content Area

1. Prepare a single-step income statement.

Revenues:
Accounts receivableCashRetained earningsSalaries expenseSales revenueSales revenue		$Sales revenue
Expenses:
CashCommon stockCost of goods soldInventorySales revenue	$- Select -
Accounts receivableAccumulated depreciationCashInventorySalaries expense	- Select -
Bonds payableFurnitureRent expenseRent payableSales revenue	- Select -
Accounts payableInsurance expenseInventoryPrepaid insuranceRetained earnings	- Select -
Accounts receivableAccumulated depreciationInterest expenseInterest payableSales revenue	- Select -
Accumulated depreciationCashDepreciation expense (furniture)FurnitureSalaries payable	- Select -
Accounts payableAccumulated depreciationBuildingDepreciation expense (building)Sales revenue	- Select -
Accounts payableCashCommon stockIncome taxes expenseIncome taxes payable	- Select -
Total expenses		fill in the blank 4adbd2fef029012_19
Net income		$fill in the blank 4adbd2fef029012_20

Question Content Area

Prepare a retained earnings statement.

Beginning retained earnings, January 1CashEnding retained earnings, December 31InventoryNet income	$- Select -
Add: CashAdd: Common StockAdd: FurnitureAdd: Net incomeAdd: Sales revenue	- Select -
Beginning retained earnings, January 1BuildingCashEnding retained earnings, December 31Net income	$- Select -

Question Content Area

Prepare a properly classified balance sheet as of December 31.

Assets
Current assets:
Accounts payableBonds payableCashCommon stockSales revenue		$- Select -
Accounts payableAccounts receivableBuildingCost of goods soldWages expense		- Select -
Accounts payableCashFurnitureInventorySalaries payable		- Select -
Total current assets			$fill in the blank 85aa5b036058021_7
Property, plant, and equipment:
Bonds payableBuildingCost of goods soldInventoryIncome taxes expense	$- Select -
Less: Accounts payableLess: Accounts receivableLess: Accumulated depreciationLess: Depreciation expense (building)Less: Retained earnings	- Select -
Building, net		fill in the blank 85aa5b036058021_12
FurnitureInsurance expenseInterest expenseInventorySales revenue	$- Select -
Less: Accounts receivableLess: Accumulated depreciationLess: Bonds payableLess: Common stockLess: Depreciation expense (furniture)	- Select -
Furniture, net		fill in the blank 85aa5b036058021_17
Total property, plant, and equipment			fill in the blank 85aa5b036058021_18
Bonds payableCashCommon stockOther assetsRetained earnings			- Select -
Total assets			$fill in the blank 85aa5b036058021_21
Liabilities
Current liabilities:
Accounts payableAccounts receivableBuildingCashInsurance expense		$- Select -
Bonds payableCommon stockFurnitureIncome taxes expenseIncome taxes payable		- Select -
Accumulated depreciationCost of goods soldRent expenseSalaries expenseSalaries payable		- Select -
Total current liabilities		$fill in the blank 85aa5b036058021_28
Long-term liabilities:
Accounts payableAccounts receivableBonds payableIncome taxes payableSalaries payable		- Select -
Total liabilities			$fill in the blank 85aa5b036058021_31
Stockholders' Equity
Stockholders' equity:
Accounts receivableBonds payableBuildingCashCommon stock		$- Select -
Accounts receivableCashFurnitureInventoryRetained earnings		- Select -
Total stockholders' equity			fill in the blank 85aa5b036058021_36
Total liabilities and stockholders' equity			$fill in the blank 85aa5b036058021_37

Question Content Area

2. Prepare a multiple-step income statement.

Depreciation expenseIncome taxes expenseSales revenueService revenueSupplies expense		$- Select -
Cost of goods soldMiscellaneous expenseRent expenseSales revenueWages expense		- Select -
Depreciation expenseGross marginIncome taxes expenseInterest revenueNet income		$- Select -
Operating expenses:
Interest incomeSalaries expenseSales revenueService revenueWages payable	$- Select -
Interest incomePrepaid rentRent expenseSales revenueService revenue	- Select -
Insurance expenseInterest incomeSales revenueService revenueSupplies	- Select -
Accumulated depreciationDepreciation expense (furniture)Interest incomeSales revenueService revenue	- Select -
Depreciation expense (building)Interest incomeMiscellaneous expenseSales revenueService revenue	- Select -
Total operating expenses		fill in the blank 935128f8404a026_17
Income from operations		$fill in the blank 935128f8404a026_18
Other income and expenses:
Income taxes expenseIncome taxes payableInterest expenseSales revenueService revenue		- Select -
Income before income taxes		$fill in the blank 935128f8404a026_21
Depreciation expenseIncome before income taxesIncome taxes expenseInterest revenueMiscellaneous expense		- Select -
Interest incomeNet incomeNet lossRent expenseService revenue		$- Select -