Presented below is the trial balance of Thompson Ltd. at December 31, 2019. A physical count of
Question:
A physical count of inventory on December 31 resulted in an inventory amount of £64,000; thus, cost of goods sold for 2019 is £645,000.
Instructions
Prepare an income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand ordinary shares were outstanding the entire year.
Transcribed Image Text:
Thompson Corporation Trial Balance December 31, 2019 Debit Credit Purchase Discounts 10,000 £ 189,700 Cash Accounts Receivable 105,000 Rent Revenue 18,000 160,000 Retained Earnings Salaries and Wages Payable 18,000 1,100,000 Sales Revenue Notes Receivable 110,000 Accounts Payable 49,000 Accumulated Depreciation-Equipment 28,000 Sales Discounts 14,500 17,500 Sales Returns and Allowances 70,000 Notes Payable Selling Expenses 232,000 Administrative Expenses 99,000 Share Capital-Ordinary 300,000 Income Tax Expense 53,900 Cash Dividends 45,000 Allovance for Doubtful Accounts 5,000 14,000 Supplies Freight-In 20,000 70,000 Land Equipment 140,000 100,000 Bonds Payable Gain on Sale of Land 30,000 Accumulated Depreciation-Buildings 19,600 Inventory 89,000 98,000 Buildings Purchases 610,000 Totals £1,907,600 £1,907,600
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
THOMPSON LTD Income Statement For the Year Ended December 31 2019 Net sales 1100000 14500 17500 1...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Question Posted:
Students also viewed these Managerial Accounting questions
-
Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31. Instructions(a) Enter the balances in ledger accounts. Allow...
-
Presented below is the trial balance of Thompson Corporation at December 31, 2012. A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold...
-
Presented below is the trial balance of Vivaldi Corporation at December 31, 2012. InstructionsPrepare a balance sheet at December 31, 2012, for Vivaldi Corporation. Ignore incometaxes. Credits Debits...
-
The 2017 financial statements for the Thor and Gunnar companies are summarized below. These two companies are in the same business and in the same province but in different cities. One-half of Thor?s...
-
Using the parallel-axis theorem, determine the product of inertia of the area shown with respect to the centroidal x and y axes. -12 1754 40 12,20 80 310 mm
-
Net income of Trout Company was $48,000. The accounting records reveal depreciation expense of $83,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $63,000,...
-
During your audit of Fletcher Corporation's June 30, 1999, financial statements, you become aware of the following control procedures over Fletcher's personnel and payroll activities: 1. All...
-
Vandiver Company had the following select transactions. Apr. 1, 2014 Accepted Goodwin Companys 12-month, 12% note in settlement of a $30,000 account receivable. July 1, 2014 Loaned $25,000 cash to...
-
Pete's Bikes purchased 40 bikes at $75 each with terms of 3/10, n/30 from Speedsters on July 10. These bikes had a cost of $45 each to Speedsters. On July 12, Pete's bikes returned 8 bikes. On July...
-
Kelly Company acquired 75 percent of Helton Companys outstanding voting shares on January 1, 2019, in exchange for $285,000 in cash. The subsidiarys stockholders equity accounts totaled $326,000, and...
-
Presented below is information related to Dickinson AG for 2019. Retained earnings balance, January 1, 2019.................................. 980,000 Sales...
-
Maher AG reported income before income tax during 2019 of 790,000. Additional transactions occurring in 2019 but not considered in the 790,000 are as follows. 1. The company experienced an uninsured...
-
Determine the appropriate amount of 2015 additional Medicare tax for Mario, a single individual. His wages total $440,000.
-
The Signet Corporation has issued four-month commercial paper with a $6.3 million face value. The firm netted $6,113,898 on the sale. What effective annual rate is Signet paying for these funds?
-
The Treadwater Bank wants to raise $1.1 million using three-month commercial paper. The net proceeds to the bank will be $1,084,600. What is the effective annual rate of this financing for Treadwater?
-
The Needy Corporation borrowed $14,000 from Bank Ease. According to the terms of the loan, Needy must pay the bank $488 in interest every three months for the three-year life of the loan, with the...
-
What is a say-on-pay vote?
-
The owner of Cupcake Delight, a mall kiosk location company that sells 20 different types of fresh cupcakes, soft drinks and coffee is concerned about low sales. She reads in a marketing textbook...
-
What is the purpose of a balanced scorecard?
-
If a and b are positive numbers, find the maximum value of f ( x ) = x a (9 x ) b on the interval 0 x 9.
-
Classification of Income Statement Items As audit partner for Grupo and Rijo, you are in charge of reviewing the classification of unusual items that have occurred during the current year. The...
-
Are all international companies subject to the same internal control standards?
-
Using the data in BE3-3, journalize the entry on July 1 and the adjusting entry on December 31 for Zubin Insurance Co. Zubin used the accounts Unearned Insurance Revenue and Insurance Revenue.
-
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter...
-
Provide documentation of a step by step training plan for a beta fish. What will be the primary reinforcer? How will you cue the behavior? What schedule of reminforcement will you use. What is the...
-
On May 1, Soriano Company reported the following account balances along with their estimated fair values: Items Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total...
Study smarter with the SolutionInn App