Nathan New started a business, Nothing New, a proprietorship, in 2016. Nothing New used the periodic inventory
Question:
Nathan New started a business, Nothing New, a proprietorship, in 2016. Nothing New used the periodic inventory system. Nothing New's accounts included the following at July 31, 2018:
Accounts Payable | $ 60,000 | Nathan New, Capital | $ 241,800 |
Accounts Receivable | 110,000 | Nathan New, Withdrawals | 50,000 |
Accumulated Amortization, Furniture | 80,000 | Purchases | 1,200,000 |
Bank Loan, Long Term | 130,000 | Salary Payable | 15,000 |
Cash | 20,000 | Sales Discounts | 30,000 |
Furniture | 320,000 | Sales Returns & Allowances | 40,000 |
General Expenses | 200,000 | Sales Revenue | 2,000,000 |
Interest Expense | 8,000 | Selling Expenses | 400,000 |
Interest Payable | 1,000 | Supplies | 20,000 |
Interest Revenue | 200 | Unearned Sales Revenue | 10,000 |
Inventory, July 1, 2018 | 140,000 |
Required:
- Prepare a single-step income statement for Nothing New at year-end July 31, 2018. Inventory was valued at $200,000 at July 31, 2018, based on a physical count.
- Prepare the statement of owner's equity for Nothing New at July 31, 2018.
- Prepare a classified balance sheet for Nothing New at July 31, 2018.
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach