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MST - sadiaAkterRia Sec09-Assignment02
MST - sadiaAkterRia Sec09-Assignment02
ditional Data:
1. The company is under 32.5% tax bracket.
2. The interest accrued on the Bond has not been paid yet.
3. $ 0.40 Cash dividend has been declared on each common stock.
4. Depreciation @ 20% is to be charged on Office Equipment under reducing-balance method.
However, for the Store Equipment straight line method is used where depreciation is charged @10%.
5. The prepaid insurance was paid for 2 years on September 1, 2018.
6. The physical inventory check reveals that Merhcandise Inventory actually at hand is $ 175,000.
quired: You have to prepare a multi-step income statement, Statement of Owner's Equity and Classified Balance Sheet of BBS Limited.
s assignment.
plate for answering.
Total income
Less: Operating Expense
Advertising expense 50,900
Office salaries expense 73,800
Rent expense 102,300
Utility expense 16,500
Insurance expense 2,000
Sales salaries expense 378,000
Depriciation expense- Office equipment 13,140
Depriciation expense- Store equipment 31,150
Auditors fee 13,000
Total operating expense
Net Operating income
Net operating income
Interest revenue
XXX Limited
Statement of Stockholder's Equity
For the year ended December XX,20XX
200,000
XXX Limited
Balance Sheet
December XX, 20XX
Explaination
Assets
Current Assets:
Cash 37,700
Accounts Receivable 111,600
Merchandising Inventory 180,000
Less: Defict Merchandising Inventory 5,000
175,000
Prepaid Insurance 12,000
Less: Insurance Expense 2,000
10,000
Office Suplies 5,000
Total Current Assets
Property Plant And Equipment:
Office equipment 115,200
Less: Accumulated Depriciation 62,640
52,560
Store Equipment 311,500
Less: Accumulated Depriciation 118,650
192,850
Total Property Plant And Equipment
Intangible Assets
Patent
Total Assets
Liabilities & Shareholders' Equity
Liabilities:
Short Term Liabilities:
Accounts Payable 48,600
Interest Payable- Bonds 5,400
Total Short Term Liabilities
Long Term Liabilities:
10% Bond 54,000
Taxes Payble 7,121
Dividend Payable 20,000
Total Long Term Liabilities
Total Liabilities
Shareholders' Equity
Common Stock 200,000
Additional Paid in Capital 209,800
Retain Earnings 339,789
Total Shareholders' Equity
57,600
2,646,000
1931000
715000
680,790
34,210
16,000
50,210
22,900
27,310
5,400
21,910
7,121
14,789
Limited
ockholder's Equity
d December XX,20XX
339,300
245,410
300,000
884,710
54,000
81,121
135,121
749,589
884,710