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Using the following information for Campbell Enterprises, prepare an annual: Mul

ID: 2415011 • Letter: U

Question

Using the following information for Campbell Enterprises, prepare an annual:

                    Multiple-step income statement

Campbell Enterprises, Inc.

Adjusted Trial Balance

December 31, 2015

                                                                                         Debit                    Credit

Cash                                                                   4,000

Accounts Receivable                                       15,000

Inventory                                                         30,000

Prepaid Insurance                                              4,000

Supplies                                                              3,000

Long-term Investment in Stock                         6,000

Land                                                                 20,000

Buildings                                                        120,000

Accumulated Depreciation—

Buildings                                                                                      20,000

Patents                                                             10,000

Accounts Payable                                                                          10,000

Unearned Revenue                                                                          2,000

Bonds Payable (due in 2023)                                                         20,000

Common Stock                                                                              80,000

Retained Earnings                                                                          44,000

Dividends                                                        30,000

Sales Revenue                                                                              305,000

Interest Revenue                                                                              5,000

Sales Discounts                                                  6,000

Sales Returns & Allowances                              8,000

Cost of Goods Sold                                       188,000

Salaries and Wages Expense                            21,000

Depreciation Expense                                      10,000

Utilities Expense                                                5,000

Insurance Expense                                             3,000

Supplies Expense                                               2,000

Interest Expense                                               1,000                                               

                                                                       486,000                 486,000

Campbell Enterprises, Inc.

Income Statement

Campbell Enterprises, Inc.

Income Statement

Explanation / Answer

Solution:

Campbell Enterprises Multiple-step income statement Sales 305000 Sales discounts 6000 Sales return & allowances 8000 net sales 291000 Cost of goods sold 188000 gross profit on sales 103000 Salaries and wages expenses 21000 utilities expenses 5000 Depreciation expenses 10000 insurance expenses 3000 supplies expenses 2000 interest expenses 1000 Total operating expenses 42000 dividend 30000 Interest revenue 5000 Unearned revenue 2000 other revenues and gains 37000 income before tax 98000 Tax 0 Net income for the year 98000 common stock 80000 Earning per common share 1.225