CH1-2 EXAMPLE PROBLEMS

CH1-2 EXAMPLE PROBLEMS - Accounts payable 125,000 Current...

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FACTS: Cash 70,000 Prepaid expenses 50,000 Inventory 200,000 Fixed assets 1,000,000 Accounts payable 125,000 Long-term debt 750,000 Common stock 15,000 Retained Earnings 240,000 Sales (all on credit) 2,500,000 Cost of goods sold 2,125,000 Selling & administrative expense 170,000 Interest expense 15,000 MAKE A CLASSIFIED BALANCE SHEET AND MULTIPLE-STEP INCOME STATEMENT
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SOLUTION XYZ, INC. BALANCE SHEET AS OF 12/31/04 ASSETS Cash 70,000 Prepaid expenses 50,000 Inventory 200,000 Current assets 320,000 Fixed assets 1,000,000 Total Assets 1,320,000 LIABILITIES & STOCKHOLDERS EQUITY
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Unformatted text preview: Accounts payable 125,000 Current liabilities 125,000 Long-term debt 750,000 Common stock 15,000 Retained Earnings 430,000 Equity 445,000 Total liabilities & stockholders equity 1,320,000 XYZ, INC. INCOME STATEMENT FOR THE YEAR ENDED 12/31/04 Sales 2,500,000 Cost of goods sold 2,125,000 Gross Profit 375,000 Selling & administrative expense 170,000 Interest expense 15,000 Net income 190,000 NOTE- TO CLOSE-OUT NET INCOME TO RETAINED EARNINGS: Retained earnings b4 close (from facts) 240,000 Add: Net income 190,000 430,000...
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This note was uploaded on 10/14/2009 for the course ECON 3A taught by Professor Loster during the Fall '07 term at UCSB.

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CH1-2 EXAMPLE PROBLEMS - Accounts payable 125,000 Current...

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