ACCT 201 Principles of Accounting I Sales Session Twenty-Seven Lotus Tea Company Income Statement For Year...
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ACCT 201 Principles of Accounting I Sales Session Twenty-Seven Lotus Tea Company Income Statement For Year Ended June 30, 2023 Cost of Goods Sold Gross Profit Utilities Expense Wages Expense $542,000 312,000 230,000 5,000 25,000 Payroll Taxes Expense 11,800 Office Expense 2,400 Depreciation Expense 36,800 Amortization Expense 2,500 Loss on the Sale of Equipment Income Before Taxes Income Tax Expense Net Income Inventory Prepaid Expenses 3.500 143,000 43.490 $ 99.510 Lotus Tea Company Comparative Balance Sheet For Year Ended June 30, 2023 4,400 447,000 (115,050) (105,950) 2022 2023 Cash $ 44,000 $ 85,610 Accounts Receivable 51,000 86,500 65,000 63,800 5,400 Total Current Assets 186,900 218,810 Equipment 350,000 Accum Deprec Assets (184,500) Building 530,000 530,000 Accum Deprec - Bldg (92,700) Land 75,000 Patent 89,000 Accum Amort - Patent (22,000) 75,000 66,000 (17,500) Total Long Term Assets 744,800 879,500 Total Assets $931,700 $1,098,310 Accounts Payable $ 30,000 $ 25,000 Wages Payable 15,000 Income Tax Payable 3,800 4,400 Total Current Liabilities 48,800 35,400 Notes Payable (Long-Term) 185,000 220,000 Total Liabilities 233,800 255,400 Common Stock 660,000 810,000 Retained Earnings 37,900 Treasury Stock 0 Total Equity 697,900 Total Liabilities & Equity $931,700 6,000 112,910 (80,000) 842.910 $1,098,310 In Class Exercise Additional Info: Depreciation Expense for the Year is $23,550 for Equipment + $13,250 for Building. Purchased a new machine in exchange for cash and a $75,000 note. The Only thing affecting Retained Earnings were Net Income and Dividends. Purchased $80,000 in Treasury Stock. Equipment that originally cost 126,000 was sold at a $3,500 loss. A Patent with an original cost 23,000 was sold for book value. Paid off a Long-Term Note at the notes carrying value $40,000. Issued 150,000 shares of common stock at $1 per share. Prepaid expenses and Wages Payable related to operating expenses on the statement. income All purchases and sales of inventory are on credit. ACCT 201 Principles of Accounting I Sales Session Twenty-Seven Lotus Tea Company Income Statement For Year Ended June 30, 2023 Cost of Goods Sold Gross Profit Utilities Expense Wages Expense $542,000 312,000 230,000 5,000 25,000 Payroll Taxes Expense 11,800 Office Expense 2,400 Depreciation Expense 36,800 Amortization Expense 2,500 Loss on the Sale of Equipment Income Before Taxes Income Tax Expense Net Income Inventory Prepaid Expenses 3.500 143,000 43.490 $ 99.510 Lotus Tea Company Comparative Balance Sheet For Year Ended June 30, 2023 4,400 447,000 (115,050) (105,950) 2022 2023 Cash $ 44,000 $ 85,610 Accounts Receivable 51,000 86,500 65,000 63,800 5,400 Total Current Assets 186,900 218,810 Equipment 350,000 Accum Deprec Assets (184,500) Building 530,000 530,000 Accum Deprec - Bldg (92,700) Land 75,000 Patent 89,000 Accum Amort - Patent (22,000) 75,000 66,000 (17,500) Total Long Term Assets 744,800 879,500 Total Assets $931,700 $1,098,310 Accounts Payable $ 30,000 $ 25,000 Wages Payable 15,000 Income Tax Payable 3,800 4,400 Total Current Liabilities 48,800 35,400 Notes Payable (Long-Term) 185,000 220,000 Total Liabilities 233,800 255,400 Common Stock 660,000 810,000 Retained Earnings 37,900 Treasury Stock 0 Total Equity 697,900 Total Liabilities & Equity $931,700 6,000 112,910 (80,000) 842.910 $1,098,310 In Class Exercise Additional Info: Depreciation Expense for the Year is $23,550 for Equipment + $13,250 for Building. Purchased a new machine in exchange for cash and a $75,000 note. The Only thing affecting Retained Earnings were Net Income and Dividends. Purchased $80,000 in Treasury Stock. Equipment that originally cost 126,000 was sold at a $3,500 loss. A Patent with an original cost 23,000 was sold for book value. Paid off a Long-Term Note at the notes carrying value $40,000. Issued 150,000 shares of common stock at $1 per share. Prepaid expenses and Wages Payable related to operating expenses on the statement. income All purchases and sales of inventory are on credit.
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Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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