BUS $100$ Assignment: Financial Statements

Introductory accounting does not require complex math or complicated procedures. It is important to be able to assign cost figures to their correct place in the key financial documents.

This assignment requires a two$-$step process:

$1.$ 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 $$6,000$

Salaries Expense $$23,000$

Supplies $$3,000$

Revenue $$121,900$

Inventory $$7,000$

Advertising Expense $$4,000$

Common Stock $$60,000$

Rent Expense $$10,000$

Depreciation Expense $$17,000$

Notes Payable $$34,400$

Accounts Payable $$10,000$

Utilities Expense $$3,000$

Salaries Payable $$9,600$

Accounts Receivable $$5,000$

Retained Earnings $$16,000$

Building $$120,000$

Utilities Payable $$1,100$

Cost of Goods Sold $$55,000$

$2.$ Check your answers using the following formulas:

A$.$ REVENUE $$ COST OF GOODS SOLD $=$ GROSS PROFIT $$ OPERATING EXPENSES $=$ NET INCOME

B$.$ ASSETS $=$ LIABILITIES $+$ OWNERS EQUITY

$($OWNER$$S EQUITY $=$ RETAINED EARNINGS ENDING BALANCE $+$ COMMON STOCK$)$

Retained Earnings Beginning Balance $?$

$+$ Net Income $($Loss$)?$

$-$ Dividends $?$

Retained Earnings Ending Balance $?$

Review your assignments. If you have the items in the right places, you should be able to calculate an Owner$$s Equity of $$85,900$ and a Gross Profit of $$66,900.$ Do not include the Example: Trucks $(4)$ in your calculations. If you don$$t get those answers, then you$$ve probably got something in the wrong place.