Introductory Accounting does not require complex math or complicated procedures. It is important to assign cost figures
Question:
Introductory Accounting does not require complex math or complicated procedures. It is important to assign cost figures to their correct place in the key financial documents.
This Homework is a two-step process:
- Place the items listed below into either the Balance Sheet or the Income Statement.
Item | Amounts | Balance Sheet | Income Statement |
Example: Trucks (4) | $97,000 | $97,000 |
|
Cash (d) | $6,000 | $10,300 |
|
Salaries Expense (d) | $23,000 |
| $23,000 |
Supplies (d) | $3,000 | $2,000 |
|
Revenue © | $121,900 |
| $42,200 |
Inventory(d) | $7,000 | $7,200 |
|
Advertising Expense (d) | $4,000 |
| $4,000 |
Common Stock © | $60,000 | $73,000 |
|
Rent Expense (d) | $10,000 |
| $1,900 |
Depreciation Expense© | $17,000 |
| $17,000 |
Notes Payable © | $34,400 | $20,000 |
|
Accounts Payable © | $10,000 | $7,700 |
|
Utilities Expense (d) | $3,000 |
| $3,000 |
Salaries Payable© | $6,000 | $6,000 |
|
Accounts Receivable (d) | $5,000 | $9,500 |
|
Retained Earnings | $16,000 | $19,700 |
|
Building(d) | $120,000 | $72,000 |
|
Utilities Payable © | $1,100 | $500 |
|
Cost of Goods Sold (d) | $55,000 |
| $24,500 |
- REVENUE – COST OF GOODS SOLD = GROSS PROFIT – OPERATING EXPENSES = NET INCOME
Revenue-Cost of goods sold= Gross profit
42200-24500 = 17700
Operating expense = 23000+4000+1900+17000+3000 = 48900
Gross profit-Operating expense = Net income
17700-48900 = -31200
- ASSETS = LIABILITIES + OWNERS EQUITY
(OWNER’S EQUITY = RETAINED EARNINGS ENDING BALANCE + COMMON STOCK)
Retained Earnings Beginning Balance |
|
+ Net Income (Loss) |
|
|
|
Retained Earnings Ending Balance |