Student Name:
Class:
695,300$
44,800$
441,225
486,025
48,500
437,525
257,775
80,500
31,000
11,388
9,000
22,900
5,900
4,400
7,600
18,500
3,500
1,300
28,500
Total Operating Expenses 224,488
Net Income for Year 33,287$
Correct!
Problem 14.03A
McGraw-Hill
Instructor
Cost of Goods Sold
Sales (Note 1)
CORTEZ VIDEO CENTER
Income Statement
Year Ended December 31, 2013
Payroll Taxes Expense
Depreciation Expense (Note 3)
Office Expenses
Utility and Telephone Expense
Interest Expense (Note 5)
Insurance Expense
Legal and Audit Expense
Purchases (Note 2)
Merchandise Inventory, Jan. 1
Salaries Expense
Operating Expenses
Gross Profit on Sales
Cost of Goods Sold
Advertising and Other Selling Expenses
Less Merchandise Inventory, Dec. 31
Total Merchandise Available for Sale
Repairs Expense (Note 4)
Miscellaneous Expense
Uncollectible Accounts Expense
689,000$
33,000
722,000
26,700
695,300$
Correct!
435,000$
45,425
480,425
39,200
441,225$
Correct!
5,375$
6,013
11,388$
Correct!
Repairs Expense
Less Cost of Paving Parking Lot
Total Charged to Repairs Expense
Correct!
12,000$
4,400
Interest Expense
Analyze: The gross profit percentage is: 37.07%
Correct!
Sales
Less Accounts Receivable, January 1
Note 1: Computation of Sales
Subtotal
Accounts Receivable, December 31
Cash Receipts for year
Computations
Subtotal
Accounts Payable, December 31
Payments to Suppliers
Note 2: Computation of Purchases
Purchases
Less Accounts Payable, January 1
Depreciation Expense
Building
Equipment
Note 3: Computation of Depreciation Expense
Note 4: Computation of Repairs Expense
Less Interest on Owner’s Investment
Total Charged to Interest Expense
Note 5: Computation of Interest Expense
689,000$
72,000$
435,000
507,000
82,000 425,000
264,000
80,500
25,200
31,000
21,120
8,000
9,000
22,900
12,000
4,400
12,000
18,500
3,500
28,500
276,620
(12,620)
15,000
2,380$
26,700$
33,000$
1,300$
48,500$
44,800$
39,200$
45,425$
2,100$
4,400$
8,000$
64,500$
12
d. Owed to merchandise suppliers January 1, 2013
Accounts Receivable December 31, 2013
a. Accounts Receivable January 1, 2013
Income Tax of Owner
Depreciation Expense
Salaries of Employees
Interest Expense
Insurance Expense
Merchandise Inventory, Jan. 1
Cost of Goods Sold
Gross Profit on Sales
Advertising and Other Selling Expenses
Payroll Taxes Expense
Cash Collected from Customers
Operating Expenses
capital investment; charged to Interest Expense
f. Cash withdrawn by owner to pay himself interest on
to Salary of Owner
e. Monthly salary paid to himself by owner; charged
Owed to merchandise suppliers December 31, 2013
Given Data P14.03A
Cost of beginning inventory
Cost of ending inventory
c. Beginning and ending inventory were valued at selling price
b. Accounts determined to be uncollectible on Dec. 31, 2013
Total Expenses
Miscellaneous Expense
Legal and Audit Expense
h. Depreciation on assets was calculated at 8% of gross profit
the previous year. Charged to Income Tax of Owner.
g. Check to cover owner’s personal income tax for
Payments to Suppliers
Office Expense
Salary of Owner
Utility and Telephone Expense
Estimated useful life in years
Original cost of equipment and fixtures
Additional Information
Net Income
Increase in Appraised Value of Land during Year
Net Loss from Operations
Repairs Expense
CORTEZ VIDEO CENTER
Income Statement
December 31, 2013
Less Merchandise Inventory, Dec. 31
–
150,330$
25
–
6,100$
qualified estate appraiser.
j. The increase in land value was based on an appraisal by a
Repairs Expense
i. Paid for new parking lot on December 22; charged to
Salvage value
Estimated useful life in years
Cost of building
Salvage value
Student Name:
Class:
10,200$
16,000
2,060
31,900
60,160$
30,000$
6,000 24,000
34,000
4,000 30,000
54,000
114,160$
Correct!
16,450$
9,600
26,050$
14,400
40,450$
73,710
114,160$
Correct!
31,900
3,200
34,000
–
10,000
9,600
Note 1:
Problem 14.04A
McGraw-Hill
Instructor
Assets
Current Assets
Truck (Note 3)
Less Accumulated Depreciation-Equipment (Note 4)
Total Liabilities and Owner’s Equity
Arthur Martin, Capital
Note 2:
Original cost of inventory
Inventory listed at today’s cost
Truck not included on Balance Sheet
Note 3:
Amount of owner’s personal cash included cash figure
Amount of remaining loan balance considered current
Amount that has been repaid on loan
Down payment
Allowable depreciation to date:
Note 4:
Purchase price
Supplies
Accounts Receivable
Cash (Note 2)
Equipment
Plant and Equipment
Total Current Assets
Inventory (Note 1)
Total Plant and Equipment
Less Accumulated Depreciation-Truck (Note 4)
Total Current Liabilities
Notes
Balance Sheet
December 31, 2013
Owner’s Equity (Note 5)
Total Liabilities
Notes Payable – Truck (Note 3)
Long-Term Liabilities
THE ART HAVEN
Notes Payable – Truck (Note 3)
Accounts Payable
Current Liabilities
Liabilities and Owner’s Equity
Total Assets
6,000
4,000
Truck
Equipment
13,400$
16,000
40,000
30,000
198,000
2,060
30,000
329,460$
16,450$
12,000
102,000
199,010
329,460$
31,900$
3,200$
34,000$
–$
Truck
Equipment
d. Allowable depreciation to date:
Amount of remaining loan balance considered current
Amount that has been repaid on loan
Family Auto
Accounts Receivable
Cash
Given Data P14.04A
Supplies
Personal Residence
Equipment (cost)
Inventory
THE ART HAVEN
Balance Sheet
December 31, 2013
Purchase price
c. Truck not included on Balance Sheet
b. Amount of owner’s personal cash included cash figure
Original cost of inventory
a. Inventory listed at today’s cost
Down payment
Additional Information
Assets
Liabilities and Owner’s Equity
Total Liabilities and Owner’s Equity
Arthur Martin, Capital
Mortgage on House
Note Payable on Family Car
Accounts Payable
Total Assets