Question

Obtain all data necessary from the worksheet prepared for The Game Place in Problem 12.6B at the end of Chapter 12. Then follow the instructions to complete this problem.
In Problem 12.6B
Cash ...................... 34,465
Accounts Receivable ............... 1,669
Prepaid Advertising ............... 480
Supplies ................... 425
Merchandise Inventory ............. 18,500
Store Equipment ................. 30,000
Accumulated Depreciation—Store Equipment ...... 3,000
Office Equipment ............... 4,800
Accumulated Depreciation—Office Equipment .... 1,500
Notes Payable, due 2017 ............. 22,500
Accounts Payable ............... 5,725
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Unearned Seminar Fees ............. 7,500
Interest Payable
Matt Huffman, Capital ............. 43,000
Matt Huffman, Drawing .............. 18,000
Income Summary
Sales ..................... 163,660
Sales Discounts ................ 180
Seminar Fee Income
Purchases ................... 92,500
Purchases Returns and Allowances ......... 770
Freight In ................... 275
Rent Expense .................. 26,400
Wages Expense ................ 18,000
Payroll Taxes Expense ............. 1,811
Depreciation Expense—Store Equipment
Depreciation Expense—Office Equipment
Advertising Expense
Supplies Expense
Interest Expense ................ 150

INSTRUCTIONS
1. Prepare a classified income statement for the year ended December 31, 2016. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December 31, 2016. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 2016.
Analyze: What is the amount of working capital for The Game Place?



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  • CreatedAugust 08, 2014
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