Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given...

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Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 20X1. ACCOUNTS Cash Debit $ 23,800 Credit Petty Cash Fund Notes Receivable, due 20X2 Accounts Receivable 500 11,500 93,000 Allowance for Doubtful Accounts $ 5,700 Merchandise Inventory 231,000 Warehouse Supplies 2,830 Office Supplies 1,390 Prepaid Insurance 9,300 Land 43,000 Building 175,000 Accumulated Depreciation-Building 52,200 Warehouse Equipment 35,500 Accumulated Depreciation-Warehouse Equipment 16,500 Delivery Equipment 49,500 Accumulated Depreciation-Delivery Equipment 19,000 Office Equipment 23,500 Accumulated Depreciation-Office Equipment 11,100 Notes Payable, due 20X2 Accounts Payable 19,900 38,700 Interest Payable 550 Mortgage Payable 59,500 Loans Payable, Long-term 15,500 Charles Ronie, Capital (January 1) 443,260 Charles Ronie, Drawing 126,700 Income Summary 241,000 231,000 Sales 1,679,000 Sales Returns and Allowances 17,900 Interest Income 1,550 Purchases 764,000 Freight In 13,500 Purchases Returns and Allowances 8,140 Purchases Discounts 10,860 Warehouse Wages Expense 196,600 Warehouse Supplies Expense 6,800 Depreciation Expense-Warehouse Equipment 5,500 Salaries Expense-Sales 266,200 Travel and Entertainment Expense 21,200 Delivery Wages Expense 60,030 Depreciation Expense-Delivery Equipment 9,500 Salaries Expense-Office 70,300 Office Supplies Expense 3,700 Insurance Expense 5,900 Utilities Expense 8,990 Telephone Expense 6,220 Payroll Taxes Expense 57,500 Property Taxes Expense 5,300 Uncollectible Accounts Expense 5,500 Depreciation Expense-Building Depreciation Expense-Office Equipment Interest Expense Totals 8,700 3,700 7,900 $ 2,612,460 $ 2,612,460 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. The operating expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. 2. Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare a classified income statement for the year ended December 31, 20X1. The operating expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 20X1 Delivered cost of purchases Net delivered cost of purchases Total merchandise available for sale Gross profit on sales Operating expenses Warehouse expenses Total warehouse expenses Selling expenses Total selling expenses General and administrative expenses SUPERIOR HARDWOOD COMPANY Income Statement Total general and administrative expenses Total operating expenses Income from operations Other income Other expenses Net nonoperating expenses Net income for year < Required 1 Required 2 > Required 1 Required 2 Required 3 Analyze Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. SUPERIOR HARDWOOD COMPANY Statement of Owner's Equity Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year. SUPERIOR HARDWOOD COMPANY Current assets Prepaid expenses Total current assets Plant and equipment Building Warehouse equipment Delivery equipment Office equipment Total plant and equipment Total assets Current liabilities Total current liabilities Long-term liabilities Balance Sheet Assets Liability and Owner's Equity Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 20X1. ACCOUNTS Cash Debit $ 23,800 Credit Petty Cash Fund Notes Receivable, due 20X2 Accounts Receivable 500 11,500 93,000 Allowance for Doubtful Accounts $ 5,700 Merchandise Inventory 231,000 Warehouse Supplies 2,830 Office Supplies 1,390 Prepaid Insurance 9,300 Land 43,000 Building 175,000 Accumulated Depreciation-Building 52,200 Warehouse Equipment 35,500 Accumulated Depreciation-Warehouse Equipment 16,500 Delivery Equipment 49,500 Accumulated Depreciation-Delivery Equipment 19,000 Office Equipment 23,500 Accumulated Depreciation-Office Equipment 11,100 Notes Payable, due 20X2 Accounts Payable 19,900 38,700 Interest Payable 550 Mortgage Payable 59,500 Loans Payable, Long-term 15,500 Charles Ronie, Capital (January 1) 443,260 Charles Ronie, Drawing 126,700 Income Summary 241,000 231,000 Sales 1,679,000 Sales Returns and Allowances 17,900 Interest Income 1,550 Purchases 764,000 Freight In 13,500 Purchases Returns and Allowances 8,140 Purchases Discounts 10,860 Warehouse Wages Expense 196,600 Warehouse Supplies Expense 6,800 Depreciation Expense-Warehouse Equipment 5,500 Salaries Expense-Sales 266,200 Travel and Entertainment Expense 21,200 Delivery Wages Expense 60,030 Depreciation Expense-Delivery Equipment 9,500 Salaries Expense-Office 70,300 Office Supplies Expense 3,700 Insurance Expense 5,900 Utilities Expense 8,990 Telephone Expense 6,220 Payroll Taxes Expense 57,500 Property Taxes Expense 5,300 Uncollectible Accounts Expense 5,500 Depreciation Expense-Building Depreciation Expense-Office Equipment Interest Expense Totals 8,700 3,700 7,900 $ 2,612,460 $ 2,612,460 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. The operating expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. 2. Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare a classified income statement for the year ended December 31, 20X1. The operating expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 20X1 Delivered cost of purchases Net delivered cost of purchases Total merchandise available for sale Gross profit on sales Operating expenses Warehouse expenses Total warehouse expenses Selling expenses Total selling expenses General and administrative expenses SUPERIOR HARDWOOD COMPANY Income Statement Total general and administrative expenses Total operating expenses Income from operations Other income Other expenses Net nonoperating expenses Net income for year < Required 1 Required 2 > Required 1 Required 2 Required 3 Analyze Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. SUPERIOR HARDWOOD COMPANY Statement of Owner's Equity Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year. SUPERIOR HARDWOOD COMPANY Current assets Prepaid expenses Total current assets Plant and equipment Building Warehouse equipment Delivery equipment Office equipment Total plant and equipment Total assets Current liabilities Total current liabilities Long-term liabilities Balance Sheet Assets Liability and Owner's Equity