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:

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 (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

 

1. 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

2. 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

Answer rating: 100% (QA)

Solution ASSETS LIABILITIES OWNER EQU... View the full answer