Problem 2–10 (continued)
McGUIRE CORPORATION
Income Statement
For the Year Ended December 31, 2018
Sales revenue …………………………………………… $342,000
Rent………………………………………………………. 12,000
Depreciation…………………………………………… 3,000
Problem 2–10 (concluded)
McGUIRE CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash …………………………………………………… $ 56,000 (1)
Accounts receivable …………………………….. 22,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable ….…………………………….. $ 30,000
Problem 2–11
Requirement 1
a. Sales revenue
Accounts receivable
b. Cost of goods sold
Accounts payable
12,000 11/30 Balance
Inventory
11/30 Balance 7,000
Problem 2–11 (concluded)
c. Insurance expense
Prepaid insurance
11/30 Balance 5,000
d. Salaries and wages expense
Salaries and wages payable
5,000 11/30 Balance
Cash payments 10,000
Requirement 2
Accounts receivable……………………………………………….. 73,000
…………………………………………………………Sales revenue
Problem 2–12
Requirement 1
Computations:
Sales revenue:
Cash collected from customers $675,000
Interest revenue:
Cash received $4,000
Cost of goods sold:
Cash paid for merchandise $390,000
Insurance expense:
Cash paid $6,000
Add: Prepaid insurance expired during 2018 2,500
Salaries and wages expense:
Cash paid $210,000
Problem 2–12 (continued)
Interest expense:
Rent expense:
Amount paid $24,000
Add: Prepaid rent on 12/31/17 expired
Zambrano Wholesale Corporation
Income statement
For the Year Ended December 31, 2018
Sales revenue $705,000
Cost of goods sold 420 ,000
Gross profit 285,000
Problem 2–12 (concluded)
Requirement 2
a. Prepaid insurance $ 2,000
Problem 2–13
Account Title Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 23,300 23,300 23,300
Accounts receivable 32,500 32,500 32,500
Supplies 0 (4) 500 500 500
Prepaid rent 0 (5) 1,000 1,000 1,000
Inventory 65,000 65,000 65,000
Problem 2–13 (continued)
EXCALIBUR CORPORATION
Income Statement
For the Year Ended December 31, 2018
Sales revenue ……………………………………….. $180,000
Cost of goods sold ………………………………… 95,000
Gross profit ………………………………………. 85,000
Problem 2–13 (continued)
EXCALIBUR CORPORATION
Statement of Shareholders’ Equity
For the Year Ended December 31, 2018
Total
Common Retained Shareholders’
Stock Earnings Equity
Balance at January 1, 2018 $80,000 $22,050 $102,050
Issue of common stock – 0 – – 0 –