• Read the given financial data of Bob's Bacon House Inc. (see sections below Milestones)
• Determine which accounts belong to the balance sheet and which accounts belong to the income statement.
• Determine to which subgroup of balance sheet or income statement each account belongs.
• Compute the correct account balances that should be reported in balance sheet and correct amounts of revenues and expenses that should be reported in income statement.
• Arrange the accounts in proper order and functionality.
• Prepare a comprehensive balance sheet in good form.
• Prepare a multi

  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

  Financial Data of Bob's Bacon House Inc. for the Year 20XX

  1	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%.

  PreviousNext

  step income statement in good form.