Question
The following partial information from the accounting records of Kendall Roman Co. as at December 31, 2020, the end of company's fiscal year, has been
The following partial information from the accounting records of Kendall Roman Co. as at December 31, 2020, the end of company's fiscal year, has been collected:
Accounts receivable (Balance at Dec 31, 2020)_______________________________$60010 Accumulated Depreciation-Furniture(Balance at January 1, 2020)______________$50050 Cash (Balance at Dec 31, 2020)______________________________________________$20030 Common Stock (Balance at January 1, 2020)___________________________________$40370 Cost of Goods Sold (of the year 2020)_______________________________________$250940 Earnings before interest and taxes (of the year 2020)_______________________$180090 Furniture (Balance at January 1, 2020)______________________________________$160250 Inventory (Balance at Dec 31, 2020_Unadjusted)______________________________$45040 Loan (Balance at Jan 01, 2020)______________________________________________$80510 Net Income (of the year 2020)_______________________________________________$90050 Retained Earnings (Balance at January 1, 2020)______________________________$60440 Supplies (Balance at Dec 31, 2020_Unadjusted)_______________________________$4050
Additional Information
a.At the end of the year, Supplies actually on hand is $2410. b.Depreciation @ 10% is to be charged on Furniture using the reducing-balance method. c.The company has declared 5% Cash Dividend on its Common Stock. d.The annual interest rate on the Loan is 2%. e.Physical check on December 31, 2020 reveals that inventory actually on hand is $44,800.
Calculate the following using all the relevant information given above:
(1) Retained Earnings Balance at the end of December 31, 2020 (1 Mark)
unanswered
(2) Earnings Before Taxes (EBT) for the year ended December 31, 2020 (1 Mark)
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(3) Accumulated Depreciation-Furniture Balance at the end of December 31, 2020 (1 Mark)
unanswered
(4) Cost of Goods Sold for the year ended December 31, 2020 (1 Mark)
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(5) Total Current Assets at the end of D
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