Question 2 (3 points) Question 2 options: What is Gross Profit for the period en
ID: 2392492 • Letter: Q
Question
Question 2 (3 points)
Question 2 options:
What is Gross Profit for the period ending December 31, 2017?
What is Operating Income for the period ending December 31, 2017?
What is Ending Retained Earnings as of December 31, 2017?
What is Net Accounts Receivable as of December 31, 2017?
What is Total Current Assets as of December 31, 2017?
What is Total Liabilities and Stockholders' Equity as of December 31, 2017?
Save
The final required step for this assignment is to upload an image of all pages of your completed hand-written assignment (journal entries, t-accounts, Adjusted Trial Balance, Income Statement, Statement of Retained Earnings, and Balance Sheet) to the Assignment dropbox area on D2L
Explanation / Answer
Gross Profit
259,000.00
Operating Income(Profit before interst and tax)
84,750.00
Retained Earnings as on 31/12/2017
40,750.00
Net accounts receivable
38,900.00
Accounts receivable are reached to trial baance only after adjustment of bad debts and allowance
and there is no adjustment provided hence
accounts receivable itself is net accounts receivable.
Total Current assets:
cash
45,000.00
accounts receivable
38,900.00
supplies
5,000.00
short term note receivable
50,000.00
interest receivable
1,350.00
prepaid insurance
50,000.00
inventory
6,500.00
TOTAL
196,750.00
Total liabilities and stockholders equity is the total of balance sheet.That is $ 251750
common stock
110,000.00
retained earnings
40,750.00
accumulated depreciation
15,000.00
accounts payable
20,000.00
unearned revenue
14,000.00
wages payable
2,000.00
long term notes payable
50,000.00
251,750.00
Trading & Profit & Loss A/c fo the year ended 31/12/2017
To cost of goods sold
55,500.00
By sales
519,500.00
wages
195,000.00
sales return & allowances
- 10,000.00
To Gross Profit
259,000.00
509,500.00
509,500.00
By Gross Profit
259,000.00
To delivery expense
5,000.00
interest revenue
1,350.00
sales discount
3,000.00
allowance for doubtful
2,000.00
depreciation
19,000.00
bad debts
2,600.00
rent
100,000.00
insurance
25,000.00
supplies expense
16,000.00
loss on disposal
7,000.00
TOTAL
262,350.00
262,350.00
Profit before interest & tax
84,750.00
Interest expense
4,500.00
Incometax expense
40,000.00
Profit after Tax
40,250.00
Less:dividend
2,000.00
RETAINED EARNINGS
38,250.00
ADD:Previous Year
2,500.00
Retained Earnings as on 31/12/2017
40,750.00
Balancesheet as on 31/12/2017
Liabilities
Assets
common stock
110,000.00
cash
45,000.00
retained earnings
40,750.00
accounts receivable
38900
accumulated depreciation
15,000.00
supplies
5,000.00
accounts payable
20,000.00
short term note receivable
50,000.00
unearned revenue
14,000.00
interest receivable
1,350.00
wages payable
2,000.00
prepaid insurance
50,000.00
long term notes payable
50,000.00
inventory
6,500.00
vehicle
16,000.00
equipment
39,000.00
251,750.00
251,750.00
Gross Profit
259,000.00
Operating Income(Profit before interst and tax)
84,750.00
Retained Earnings as on 31/12/2017
40,750.00
Net accounts receivable
38,900.00
Accounts receivable are reached to trial baance only after adjustment of bad debts and allowance
and there is no adjustment provided hence
accounts receivable itself is net accounts receivable.
Total Current assets:
cash
45,000.00
accounts receivable
38,900.00
supplies
5,000.00
short term note receivable
50,000.00
interest receivable
1,350.00
prepaid insurance
50,000.00
inventory
6,500.00
TOTAL
196,750.00
Total liabilities and stockholders equity is the total of balance sheet.That is $ 251750
common stock
110,000.00
retained earnings
40,750.00
accumulated depreciation
15,000.00
accounts payable
20,000.00
unearned revenue
14,000.00
wages payable
2,000.00
long term notes payable
50,000.00
251,750.00
Trading & Profit & Loss A/c fo the year ended 31/12/2017
To cost of goods sold
55,500.00
By sales
519,500.00
wages
195,000.00
sales return & allowances
- 10,000.00
To Gross Profit
259,000.00
509,500.00
509,500.00
By Gross Profit
259,000.00
To delivery expense
5,000.00
interest revenue
1,350.00
sales discount
3,000.00
allowance for doubtful
2,000.00
depreciation
19,000.00
bad debts
2,600.00
rent
100,000.00
insurance
25,000.00
supplies expense
16,000.00
loss on disposal
7,000.00
TOTAL
262,350.00
262,350.00
Profit before interest & tax
84,750.00
Interest expense
4,500.00
Incometax expense
40,000.00
Profit after Tax
40,250.00
Less:dividend
2,000.00
RETAINED EARNINGS
38,250.00
ADD:Previous Year
2,500.00
Retained Earnings as on 31/12/2017
40,750.00
Balancesheet as on 31/12/2017
Liabilities
Assets
common stock
110,000.00
cash
45,000.00
retained earnings
40,750.00
accounts receivable
38900
accumulated depreciation
15,000.00
supplies
5,000.00
accounts payable
20,000.00
short term note receivable
50,000.00
unearned revenue
14,000.00
interest receivable
1,350.00
wages payable
2,000.00
prepaid insurance
50,000.00
long term notes payable
50,000.00
inventory
6,500.00
vehicle
16,000.00
equipment
39,000.00
251,750.00
251,750.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.