Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The

image text in transcribedimage text in transcribed

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Current Year Previous Year Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings $ 35,650 37,000 43,000 136,000 (32,000) $ 219,650 $ 38,000 850 47,000 $ 30,750 29,000 39,000 110,000 (26,000) $ 182,750 $ 28,000 1,150 54,000 94,600 73,600 39,200 26,000 Total Liabilities and Stockholders' Equity $ 219,650 $ 182,750 Income Statement Service Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $26,000. b. Paid $7,000 on the long-term notes payable. c. Issued new shares of stock for $21,000 cash. d. No dividends were declared or paid. $ 130,000 75,000 41,800 $ 13,200 e. Other expenses included depreciation, $6,000; salaries and wages, $21,000; taxes, $7,000; utilities, $7,800. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland, Wayne Thomas, Don Herrmann

4th edition

1259307956, 978-1259307959

More Books

Students also viewed these Accounting questions