Use the following information to prepare a multistep income statement and a classified balance sheet for Brown
Question:
Use the following information to prepare a multistep income statement and a classified balance sheet for Brown Company for 2016.
Operating expenses ...............$ 45,000
Land .................... 75,000
Accumulated depreciation ........... 46,000
Accounts payable ................ 35,000
Unearned revenue ................ 27,000
Warranties payable (short term) ......... 4,500
Equipment .................. 96,000
Notes payable (long term) ........... 140,000
Salvage value of equipment ........... 10,000
Dividends ................. 15,000
Warranty expense .............. 7,200
Beginning retained earnings .......... 41,100
Interest revenue ............... 4,200
Gain on sale of equipment ........... 7,000
Inventory .................. 126,000
Notes receivable (short term) ........... 12,500
Cash ......................$ 46,000
Interest receivable (short term) .......... 1,600
Cash flow from investing activities ........ (96,000)
Allowance for doubtful accounts .......... 14,000
Interest payable (short term) ........... 6,000
Sales revenue ................. 900,000
Uncollectible accounts expense ............ 25,000
Interest expense ................. 16,000
Accounts receivable ................ 88,000
Salaries payable ................ 48,000
Supplies .................... 4,500
Prepaid rent .................... 18,000
Common stock ................. 90,000
Cost of goods sold ................ 575,000
Salaries expense ................ 102,000
Building ................... 110,000
Salvage ValueSalvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Brown Company Income Statement For the Year Ended December 31 2016 Sales Revenue 900000 Cost of Good...View the full answer
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
