Tile, Etc. had the following transactions in Year 3:
- Purchased merchandise on account for $630,000.
- Sold merchandise that cost $470,000 for $990,000 on account.
- Sold for $295,000 cash merchandise that had cost $180,000.
- Sold merchandise for $240,000 to credit card customers. The merchandise had cost $116,000. The credit card company charges a 4 percent fee.
- Collected $720,000 cash from accounts receivable.
- Paid $660,000 cash on accounts payable.
- Paid $155,000 cash for selling and administrative expenses.
- Collected cash for the full amount due from the credit card company (see item 4).
- Loaned $60,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity.
- Wrote off $8,500 of accounts as uncollectible.
- Made the following adjusting entries:
- (a)Recorded uncollectible accounts expense estimated at 1 percent of sales on account.
- (b)Recorded seven months of accrued interest on the note at December 31, Year 3 (see item 9).
Required
a.Organize the transaction data in accounts under an accounting equation.
- b.Do an in income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 3.
The following trial balance was prepared for Tile, Etc., Inc. on December 31, Year 2, after all account adjustments had been made: Account Title Cash $160,000 Accounts receivable 135,000 Allowance for doubtful accounts 23,000 Inventory 445,000 Accounts payable 105,000 Common stock 500,000 Retained earnings 112,000 Tile, Etc. had the following transactions in Year 3: Purchased merchandise on account for $630,000. Sold merchandise that cost $470,000 for $990,000 on account. Sold for $295,000 cash merchandise that had cost $180,000. Sold merchandise for $240,000 to credit card customers. The merchandise had cost $116,000. The credit card company charges a 4 percent fee. Collected $720,000 cash from accounts receivable. Paid $660,000 cash on accounts payable. Paid $155,000 cash for selling and administrative expenses. Collected cash for the full amount due from the credit card company [see item 4). Loaned $60,000 to J. Parks. The note had an 8 percent interest rate and a one-year term to maturity. Wrote off $8,500 of accounts as uncollectible. Made the following adjusting entries: {3) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. {b} Recorded seven months of accrued interest on the note at December 31, Year 3 {see item 9). PEN\":- eeuee Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement. a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 3. Complete this question by entering your answers in the tabs below. Required B Inc Required B Required B Bal Required B Required A Stmt Stmt Sheet Stmt of Cash Stkholders Eq Flows Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles I cells blank if there is no corresponding Retained Earnings input needed.) TILE, ETC., INC. Horizontal Statements Model Assets Liabilities + Equity Event Cash Accounts Allowance + Merchandise Notes Interest Accounts Common Retained Accounting Titles for Retained Earn Receivable Inventory Receivable Receivable Payable Stock Earnings Bal. 160,000 + 135,000 23,000 + 445,000 + 105,000 + 500,000 = 112,000 1. + 630,000 + 630,000 + 2a. + 990,000 190,000 Sales revenue 2b. (470,000) + (470,000) Cost of sales 3a. 295,000 + 295,000 Sales revenue 3b. (180,000) + (180,000) Cost of sales 4a. 240,000 240,000 Sales revenue 4a. + 4b. (116,000) (116,000) Cost of sales 5 720,000 + (720,000) 6. (660,000) + (660,000) + 7 (155,000) + 1 + (155,000) Selling and administrative expense B 230,400 + (240,000) + + (9,600) Credit card expense g 60,000 60,000 10. (8,500) (8,500) 11a 9,900 9,900) Uncollectible accounts expense 11b. 2,800 2,800 Interest revenue Bal San Ann _ 24 ann _ ana non _ An non _ 2 AnnI 75 0nn 1 Ann non - AQQ annComplete this question by entering your answers in the tabs below. Required B Ince Required B Required B Required A Stmt Stmt Required B Bal Stkholders Eq Sheet Stmt of Cash Flows Prepare an income statement for Year 3. TILE, ETC., INC. Income Statement For the Year Ended December 31, Year 3 Operating expenses Total operating expenses 0 Add: Non-operating items Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 3. Complete this question by entering your answers in the tabs below. Required B Inc. Required B Required A Required B Bal Required B Stmt Stmt Stmt of Cash Stkholders Eq Sheet Flows Prepare a statement of changes in stockholders' equity for Year 3. TILE, ETC., INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 3 Beginning common stock Ending common stock 0 Beginning retained earnings Ending retained earnings O Total stockholders' equity 0 Required B Required A Required B Inc Stmt Required B Ball Required B Stmt Sheet Stmt of Cash Stkholders Eq Flows Prepare a balance sheet for Year 3. (Be sure to list the assets in the order of their liquidity.) TILE, ETC., INC. Balance Sheet As of December 31, Year 3 Assets Total assets Liabilities Total liabilities 0 Stockholders' equity Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0
