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    Problems On Merchandising FS Multiple Step Lanz Co.

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    Eve Rose Tacadao II
    Lanz Co. reported net sales of $733,000 for the period ended December 31, 2020 after deducting sales discounts and returns from gross sales. Cost of goods sold was $577,000, resulting in a gross profit of $157,000. After deducting total operating expenses of $90,000, income before taxes was $67,000. Owner's equity increased from $288,000 to $325,000 after adding net income of $67,000 and deducting drawings of $30,000. Total assets of $1,395,000 included current assets of $876,000 and non-current assets of $454,000, while total liabilities of $1,070,000 included

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    Problems On Merchandising FS Multiple Step Lanz Co.

    Uploaded by

    Eve Rose Tacadao II
    35 views3 pages
    Lanz Co. reported net sales of $733,000 for the period ended December 31, 2020 after deducting sales discounts and returns from gross sales. Cost of goods sold was $577,000, resulting in a gross profit of $157,000. After deducting total operating expenses of $90,000, income before taxes was $67,000. Owner's equity increased from $288,000 to $325,000 after adding net income of $67,000 and deducting drawings of $30,000. Total assets of $1,395,000 included current assets of $876,000 and non-current assets of $454,000, while total liabilities of $1,070,000 included

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    Lanz Co. reported net sales of $733,000 for the period ended December 31, 2020 after deducting sales discounts and returns from gross sales. Cost of goods sold was $577,000, resulting in a gross profit of $157,000. After deducting total operating expenses of $90,000, income before taxes was $67,000. Owner's equity increased from $288,000 to $325,000 after adding net income of $67,000 and deducting drawings of $30,000. Total assets of $1,395,000 included current assets of $876,000 and non-current assets of $454,000, while total liabilities of $1,070,000 included

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views3 pages

    Problems On Merchandising FS Multiple Step Lanz Co.

    Uploaded by

    Eve Rose Tacadao II
    Lanz Co. reported net sales of $733,000 for the period ended December 31, 2020 after deducting sales discounts and returns from gross sales. Cost of goods sold was $577,000, resulting in a gross profit of $157,000. After deducting total operating expenses of $90,000, income before taxes was $67,000. Owner's equity increased from $288,000 to $325,000 after adding net income of $67,000 and deducting drawings of $30,000. Total assets of $1,395,000 included current assets of $876,000 and non-current assets of $454,000, while total liabilities of $1,070,000 included

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Lanz Co.

    Statement of Comprehensive Income


    Sales 760,0
    00
    Less: Sales Discounts 10,000
    For the period ended December 31,2020
    Sales Returns 16,000
    Less: Cost of Goods Sold
    Merchandise Inventory, January 1 350,000
    Add: Net Purchases
    Purchases 725,000
    Add:Freight In 15,000
    Gross Purchases 740,000
    Less:Purchase Discounts 11,000
    Net Sales
    Purchase Returns 12,000 23,000
    Less:Merchandise Inventory, Ending 490,000 577,0
    00
    Gross Profit 157,0
    00
    Less:Operating Expenses
    Administrative Expenses
    Light and Water Expense 18,000
    Salaries and Wages 32,000
    Supplies Expense 15,000
    Taxes and Licenses 10,000 75,000
    Selling Expenses
    Advertising Expense 15,000 15,000
    Total Operating Expense 90,00
    0
    Income before Interest and Taxes 67,00
    0
    Net Income 67,00
    0

    Cost of Goods Availbale for Sale

    Lanz Co.
    Statement of Owner’s Equity
    For the period ended December 31,2020

    Lanz Capital, Beginning 288,000


    Add:Net Income
    Total
    Less:Drawing 30,000
    Lanz Capital, Ending 325,000
    Lanz Co.

    Statement of Financial Position


    December 31,2020

    ASSETS
    Current Assets
    Petty Cash Fund 10,00
    0
    Cash in Bank 140,0
    00
    Accounts Receivable 80,000
    Allowance for doubtful Accounts 12,000 68,00
    0
    Notes Receivable 160,0
    00
    Merchandising Inventory, ending 490,0
    00
    Prepaid Rent 48,00
    0
    Prepaid Insurance
    Total Current Assets
    Non-current Assets
    Office Equipment 130,000
    Less:Accumulated Depreciation – Office Equipment 124,000
    Store Furnitures and Fixtures
    Less:Accumulated Depreciation – Store Furnitures and Fixtures 20,000
    330,000
    Total Non-current Assets 454,000
    Total Assets 1,395,000
    LIABILITIES
    Current Liabilities
    Accounts Payable 290,000
    Salaries Payable 280,000
    Total Current Liabilities 570,0
    00
    Non-current Liabilities
    Bank Loan Payable 500,000
    Total Non-current Liabilities 500,00
    Total Liabilities 1,070,00
    0
    OWNER’S EQUITY 0

    SPUI Capital, Ending 325,00


    0
    Total Liabilities and Owner’s Equity 1,395,0
    00
    Eve Rose Tacadao
    12- Our Lady of Chartres
    Fundamentals of Accountancy
    Business and Management

    Problems on Merchandising FS – Multiple Step –Lanz Co.

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