Prepare a Multi-step Income Statement and Balance Sheet using this information, please reflect all the calculations and journal entries in the response.
Financial Data of Bob's Bacon House Inc. as of January 1, 20XX Accounts Payable 200,500 Account Receivable 165,700 Accumulated Depreciation's 350,000 Additional Paid-In Capital 40,000 Allowance for Doubtful Accounts 2,650 Building and Equipment 1,120,000 Cash 45,300 Common Stock 544,850 Copyrights 112,000 Customer Deposits (expected to be paid in 20XX) 375 Goodwill 225,000 Income Taxes Payable 42,340 Inventories @ $25/unit 315,250 Long-term Investments in Warren Co. 95,630 Deposits With Vendors 47,200 Land 125,000 Mortgage Payable ($2,780 per month) 667,200 2% Notes Payable to Banks (due 20XX) 26,000 Notes Receivable (due 20XX) 16,000 Patents 219,335 Retained Earnings 127,500 Trademarks 115,000 Twenty-year, 3% Bonds, Due 1/1/20XX 600,000 Finished Goods inventory purchased from suppliers on account. 2/10/20XX 10,000 units @ $26 each 6/12/20XX 15,000 units @ $28 each 10/23/20XX 12,000 units @ $29 each 11/25/20XX 8,000 units @ $30 each Bob's Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account. 2 Payments made to suppliers on account during 20XX are $1,124,450. 3 Sales made to customers on account are 49,356 units @ $36 each. 4 Cash collected from customers during 20XX is $1,750,700. 5 Total interest paid on notes payable and bonds payable amounted to $17,415. 6 Rental income on property leased out is $25,650. 7 Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800. 8 Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX. 9 Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. 10 Income tax expense paid is $90,500. Bob's Bacon House income tax rate for 20XX is 30%. Financial Data of Bob's Bacon House Inc. as of January 1, 20XX Accounts Payable 200,500 Account Receivable 165,700 Accumulated Depreciation's 350,000 Additional Paid-In Capital 40,000 Allowance for Doubtful Accounts 2,650 Building and Equipment 1,120,000 Cash 45,300 Common Stock 544,850 Copyrights 112,000 Customer Deposits (expected to be paid in 20XX) 375 Goodwill 225,000 Income Taxes Payable 42,340 Inventories @ $25/unit 315,250 Long-term Investments in Warren Co. 95,630 Deposits With Vendors 47,200 Land 125,000 Mortgage Payable ($2,780 per month) 667,200 2% Notes Payable to Banks (due 20XX) 26,000 Notes Receivable (due 20XX) 16,000 Patents 219,335 Retained Earnings 127,500 Trademarks 115,000 Twenty-year, 3% Bonds, Due 1/1/20XX 600,000 Finished Goods inventory purchased from suppliers on account. 2/10/20XX 10,000 units @ $26 each 6/12/20XX 15,000 units @ $28 each 10/23/20XX 12,000 units @ $29 each 11/25/20XX 8,000 units @ $30 each Bob's Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account. 2 Payments made to suppliers on account during 20XX are $1,124,450. 3 Sales made to customers on account are 49,356 units @ $36 each. 4 Cash collected from customers during 20XX is $1,750,700. 5 Total interest paid on notes payable and bonds payable amounted to $17,415. 6 Rental income on property leased out is $25,650. 7 Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800. 8 Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX. 9 Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. 10 Income tax expense paid is $90,500. Bob's Bacon House income tax rate for 20XX is 30%
