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The balance sheet shows the company's assets of $37,950 in current assets and $8,325 in long-term assets like furniture and fixtures for total assets of $48,475. Liabilities include $11,425 in current liabilities and $37,050 in stockholders' equity. The income statement reveals $56,200 in net sales and $19,300 in gross profit on sales. Operating expenses were $12,175, yielding operating income of $7,125. After other revenues and expenses, net income before tax was $7,950 and net income was $6,050 after taxes.

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24 views

Inte

The balance sheet shows the company's assets of $37,950 in current assets and $8,325 in long-term assets like furniture and fixtures for total assets of $48,475. Liabilities include $11,425 in current liabilities and $37,050 in stockholders' equity. The income statement reveals $56,200 in net sales and $19,300 in gross profit on sales. Operating expenses were $12,175, yielding operating income of $7,125. After other revenues and expenses, net income before tax was $7,950 and net income was $6,050 after taxes.

Uploaded by

Barcelona, Tricia Mae F.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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EVERGREEN ENTERPRISES

Balance Sheet

December 31, 19--

ASSETS

Current Assets:

Cash ……………… P 5,200

Notes Receivable …………….. 3,000

Accounts Receivable …………………… 4,500

Interest Receivable ……………………. 50

Merchandise Inventory …………………….. 24,600

Supplies on Hand …………………………. 600 P 37,950

Long-term Investments. …………………………… 2,200

Furniture and Fixtures (Cost, Less

Accumulated Depreciation). ……………………….. 8,325

Total assets …………………………………………… P48,475

LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities:

Accounts Payable ………………………….. P 9,000

Salaries Payable ……………………………. 250

Income Tax Payable ………………………….. 1,900

Miscellaneous Expense Payable …………………… 150

Unearned Rent Revenue ………………………… 125 P11,425


Stockhol ders Equity:

Common StoCk--par value P50 per share. ……… P30,000

Retained Earnings. ……………………………………. 7,050 P37,050

Total Liabilities and Stockholders

Equity ………………………………………………… P48,475

EVERGREEN ENTERPRISES

Income Statement

For Year Ended December 31, 19-

Revenue from Sales:

Sales . . . . . . . . . . . . . . . . . . . . . . . .. . ... . . . . P57,680

Less: Sales Returns and

Allowances . . . . . .. . . . . . .. . . . . . . . . . . . . . . .. 1,480 P56,200

Cost of Goods Sold:

Merchandise Inventory, Jan. 1, 19- . . . . . . . . . .. P20, 000

Purchases . . . . . . . . .. . . . . .. . . . . . . . . P42,100

Less: Purchase Discount . .................. 600 41,500

Merchandise Available for Sale P61,500

Less: Merchandise Inventory,

December 31, 19-- ................ 24,600 P36,900

Gross Profit on Sale P19,300

Operating Expenses:

Salaries. .................. P4,250

Rent Expense. . . . . . . . . . . . . . . . . . .. . . . 4,440


Supplies Expense. . . . . . . . . . .. . . . . . . . . 800

Depreciation Expense

(Furniture and Fixture). . . . . …. . . . . . . . . . . . . . 975

Miscellaneous Expense . . . . . . . . . . . . . . . . . . 1,750 12.17

Operating Income .................... P 7,125

Other Revenue and Expense Items:

Interest and Dividend Revenue . . . . . . . . . . . . . P 300

Rent Revenue. .................... 1,775

Loss on Sale of Investment . . . . . . . . . . . . . (1,250) 825

Net Income before tax . . . . . . . . . . . . . . . P 7,950

Less: Income Tax. .................. 1,900

Net Income P 6,050

FORMULA

37,950 = sum of current assets

48,475 = sum of long term investment and furniture and fixtures

11,425 = sum of current liabilities

37,050 = sum of stockholders equity

48,475 = sum of total current liabilities and total of stock holders equity

56,200 = sales – sales returns and allowance

61,500 = (purchases – purchase discount) + merchandise inventory

36,900 = merchandise inventory jan1 – less merchandise inventory dec 31 19—

19,300 = total revenue sales – total of merchandise inventory

12,175 = sum of operating expenses

7,125 = gross profit on sale – total of operating expenses

825 = ( interest and dividend revenue + rent revenue) – lost on sale investment

6,050 = net income before – income tax

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