Question
Problem 13.1A Preparing classified financial statements. LO 13-1, 13-2, 13-3 Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data
Problem 13.1A Preparing classified financial statements. LO 13-1, 13-2, 13-3
Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 2019.
ACCOUNTS | Debit | Credit | ||||
Cash | $ | 34,100 | ||||
Petty Cash Fund | 500 | |||||
Notes Receivable, due 2020 | 11,800 | |||||
Accounts Receivable | 86,000 | |||||
Allowance for Doubtful Accounts | $ | 6,000 | ||||
Merchandise Inventory | 234,000 | |||||
Warehouse Supplies | 2,860 | |||||
Office Supplies | 1,420 | |||||
Prepaid Insurance | 10,200 | |||||
Land | 46,000 | |||||
Building | 178,000 | |||||
Accumulated DepreciationBuilding | 54,000 | |||||
Warehouse Equipment | 37,000 | |||||
Accumulated DepreciationWarehouse Equipment | 17,400 | |||||
Delivery Equipment | 51,000 | |||||
Accumulated DepreciationDelivery Equipment | 19,600 | |||||
Office Equipment | 25,000 | |||||
Accumulated DepreciationOffice Equipment | 12,000 | |||||
Notes Payable, due 2020 | 20,200 | |||||
Accounts Payable | 49,000 | |||||
Interest Payable | 580 | |||||
Mortgage Payable | 61,000 | |||||
Loans Payable, Long-term | 17,000 | |||||
Charles Ronie, Capital (Jan. 1) | 452,460 | |||||
Charles Ronie, Drawing | 127,000 | |||||
Income Summary | 244,000 | 234,000 | ||||
Sales | 1,685,000 | |||||
Sales Returns and Allowances | 18,200 | |||||
Interest Income | 1,580 | |||||
Purchases | 767,000 | |||||
Freight In | 13,800 | |||||
Purchases Returns and Allowances | 8,440 | |||||
Purchases Discounts | 11,160 | |||||
Warehouse Wages Expense | 199,600 | |||||
Warehouse Supplies Expense | 7,100 | |||||
Depreciation ExpenseWarehouse Equipment | 5,800 | |||||
Salaries ExpenseSales | 269,200 | |||||
Travel and Entertainment Expense | 21,500 | |||||
Delivery Wages Expense | 60,330 | |||||
Depreciation ExpenseDelivery Equipment | 9,800 | |||||
Salaries ExpenseOffice | 70,600 | |||||
Office Supplies Expense | 4,000 | |||||
Insurance Expense | 6,200 | |||||
Utilities Expense | 9,290 | |||||
Telephone Expense | 6,520 | |||||
Payroll Taxes Expense | 59,000 | |||||
Property Taxes Expense | 5,600 | |||||
Uncollectible Accounts Expense | 5,800 | |||||
Depreciation ExpenseBuilding | 9,000 | |||||
Depreciation ExpenseOffice Equipment | 4,000 | |||||
Interest Expense | 8,200 | |||||
Totals | $ | 2,649,420 | $ | 2,649,420 | ||
Required:
Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.
Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.
Analyze: What is the current ratio for this business?
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