Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P2-56B Prepare income statements (Learning Objective 5) Part One: In 2016, Lindsey Tapia opened Lindsey's Pets, a small retail shop selling pet sup- plies. On

image text in transcribed
image text in transcribed
image text in transcribed
P2-56B Prepare income statements (Learning Objective 5) Part One: In 2016, Lindsey Tapia opened Lindsey's Pets, a small retail shop selling pet sup- plies. On December 31, 2016, her accounting records show the following: Inventory on December 31, 2016 $ 9.400 Inventory on January 1, 2016 12,200 Sales revenue 55,000 Utilities for shop 1,500 Rent for shop.. 3.400 4,100 Sales commissions. 34,500 Purchases of merchandise 1 Requirement Prepare an income statement for Lindsey's Pets, a merchandiser, for the year ended December 31, 2016 Part Two: Lindsey's Pets succeeded so well that Lindsey decided to manufacture her own brand of pet toys-Best Friends Manufacturing. At the end of December 2017, her account ing records show the following: CHAPTER 2 Work in process inventory, December 31, 2017 Finished goods inventory, December 31, 2016 Finished goods inventory, December 31, 2017 Sales teve Customer service hotline expense Utilities for plant Delivery se Sales sales expense Pantalonial services Direct labour Direct material purchases Renton manufacturing plant Raw materials entory, December 31, 2016 w materials inventory, December 31, 2017 Work in Docs wery, December 31, 2016 $ 4000 0 3,000 103,000 1.400 4,500 2,500 4,200 1,250 20,000 39.000 8,400 10,000 8.000 0 Requirements 1. Prepare a schedule of cost of goods manufactured for Best Friends Manufacturing for the year ended December 31, 2017 2. Prepare an income statement for Best Friends Manufacturing for the year ended December 31, 2017 3. How does the format of the income statement for Best Friends Manufacturing differ from the income statement of Lindsey's Pets? Part Three: Show the ending inventories that would appear on these balance sheets: 1. Lindsey's Pets at December 31, 2016. 2. Best Friends Manufacturing at December 31, 2017

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 Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel

3rd Canadian Edition

0470836792, 978-0470836798

More Books

Students also viewed these Accounting questions

Question

=+6. What five driving forces make CSR more relevant today?

Answered: 1 week ago