Download - B. Sheet Prb 1
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Problem on Multiple Step Income Statement, Owners Equity Statement and Classified Balancesheet
1. The trial balance of Kevin Poorten Fashion Centre contained the following accounts at November30, 2011 of the companys fiscal year.
Kevin Poorten Fashion CentreTrial Balance
November 30, 2011
Debit CreditCash 26,700Accounts Receivable 30,700Merchandise Inventory (Nov 30, 2011) 44,700Store Supplies 6,200Store Equipment 85,000Accumulated Depreciation-Store Equipment 18,000Delivery Equipment 48,000Accumulated Depreciation- Delivery Equipment 6,000
Notes Payable 51,000Accounts Payable 48,500Kevin Poorten, Capital 110,000Kevin Poorten, Drawing 12,000Sales 759,200Sales Returns and Allowances 8,800Cost of Goods Sold 497,400Salaries Expenses 140,000Advertising Expenses 26,400
Utility Expenses 14,000Repair Expenses 12,100Delivery Expenses 16,700Rent Expenses 24,000Total 992,700 992,700
Adjustment Data:1. Store supplies on hand totaled Tk.3, 500.2. Depreciation is Tk. 9,000 on the store equipment and Tk. 6,000 on the delivery equipment.3. Interest of Tk. 4,080 is accrued on the notes payable at November 30.
Other Data:
1. Salaries expenses 70% selling and 30% administrative.2. Rent expense and utilities expenses are 80% selling and 20% administrative.3. Tk. 30,000 of notes payable are due for payment next year.4. Repair expense is 100% administrative.
Required:a. Prepare a multiple step income statement and an owners equity statement for the year. b. Classified balance sheet as of November 30, 2011
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SolutionReq:a
Kevin Poorten fashion CentreClassified Income Statement
For the year ended November 30, 2011
Particular Amount Amount Amount
Sales .. Less: Sales returns & allowance... Net sales...
Less: Cost of goods sold (COGS) Gross Profit
Less: Operating ExpensesAdministrative Expenses
Salary expenses (140,000*30).. Utility expenses (14000*20) Repair expenses ... Rent expenses (24000*20)... Supplies.. Total administrative expense.
Selling expenses
Salary expenses (140,000*70).. Utility expenses (14 000*80) Rent expenses (24000*80)... Advertising expenses Delivery expenses.. Depreciation expense (store equipment)... Depreciation expense (delivery van)... ......
Total Operating expense
Total operating income/ income fromoperation .. Less: Non-operating expensesInterest expense.
Net Loss..
420002800
1210048002700
980001120019200264001670090006000
759200(8800)
64400
186500
750400
497400253000
(250900)
2100
(4080)
(1980)
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Kevin Poorten fashion Centre
Owners Equity StatementFor the year ended November 30, 2011
Particular Amount
Kevin Poorten Capital Less: Net Loss
Less: Drawings .. Kevin Poorten, Capital (ending)
110000(1980)108020(12000)96020
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Solution: Req (b)Kevin Poorten fashion Centre
Balance SheetNovember 30, 2011
Particular Amount Amount
Current asset:Cash Accounts receivable... Merchandise inventory (ending).... Store supplies. Total current asset ...
Long term investment:
Property, plant & Equipment (PPE):
Store equipment 85000 Less: Accumulated depreciation.. 27000
Delivery equipment 48000 Less: Accumulated depreciation 12000Total PPE .
Intangible asset :
Total Asset
Liabilities & owners equity
Liability:
Current liability: Notes payable (51000- 30000) Accounts payable... Interest payable.. Total current liability
Long term liability Notes payable
Owners equity
Kevin Poorten ending capital.
2670030700447003500
58000
36000
21000485004080
105,600
0
94,000
0
199,600
73,500
30,000
96020199600
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