hi, I need help with my accounting assignment please. Comprehensive Problem: Rev

Question

hi, I need help with my accounting assignment please.

Comprehensive Problem: Reviewing the Accounting Cycle Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning balances were available: of 2013, the following Cash Accounts Receiva ble Supplies Prepaid Advertising Building (Warehouse Accumulated Depreciation s 92,100 Accumulated Depreciation 361,500 (Equipment) 24,600 Land s 580,000 304,975 17,600 30,200 1,000,000 1,400,000 462,375 2,000 Accounts Payable 2,190,000 Wages Payable Notes Payable (due in 2017) (Warehouse) Equipment 280,000 Common Stock 795,000 Retained Eamings, 1/31/2012 During 2013 the following transactions occured: a. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838 b. There remains $286,172 of accounts receivable to be collected at December 31, 2013. c. Tarkington purchased advertising of $138,100 during 2013 and debited the amount to prepaid advertising d. Supplies of $27,200 were purchased on credit and debited to the supplies account. e. Accounts payable at the beginning of 2013 were paid early in 2013. There remains s5,600 of accounts payable unpaid at year end f. Wages payable at the beginning of 2013 were paid early in 2013. Wages were eamed and paid during 2013 in the amount of $666,142 g. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use h, one-half year's interest at 6% annual rate was paid on the note payable on July 1, 2013. i. Property taxes were paid on the land and buildings in the amount of $170,000. j. Dividends were declared and paid in the amount of $25,000

Explanation / Answer

TARKINGTON FREIGHT SERVICE INCOME STATEMENT FOR THE YEAR ENDED 31.12.2013 Particulars In $ SALES (A) 2943538 EXPENSES Supplies consumption cost (Refer Note 1) 38115 Wages 666142 Interest cost 60000 Property tax 170000 Advertising cost (Refer Note 2) 125226 Depreciation 215000 Income Tax 482549 Total Expenses (B) 1757032 NET PROFIT (A - B) 1186506 Note 1 Supplies consumption cost Purchase during the year 27200 (+) Opening stock 24600 (-) Closing stock 13685 Supplies consumption cost 38115 Note 2 Advertising cost Opening bal. of Prepaid Advert. 2000 (+) Incurred during the year 138100 Clsong bal of Prepaid Advert. 14874 Advertising cost 125226 RETAINED EARNING STATEMENT FOR THE YEAR ENDED 31.12.2013 Particulars In $ Opening balance 462375 (+) Profit during the year 1186506 (-) Dividend Declared 25000 Closing balance of Retained earnings 1623881 TARKINGTON FREIGHT SERVICE BALANCE SHEET 31.12.2013 ASSETS Current Assets Cash 2072882 Account Receivables 286172 Supplies 13685 Prepaid advertising 14874 Property , Plant & Equipment Buidling 2190000 (-) Accumulated Depreciation 350000 1840000 Equipment 795000 (-) Accumulated Depreciation 725000 70000 Land 304975 TOTAL ASSETS 4602588 LIABILITIES Current Liabilties Accounts payable 5600 Interest on Note payable 30000 Wages Payable 60558 Income Tax payable 482549 Long Term Liabilities Notes payable 1000000 TOTAL LIABILITIES 1578707 SHAREHOLDERS EQUITY Common stock 1400000 Retained Earnings 1623881 TOTAL SHAREHOLDERS EQUITY 3023881 TOTAL LIABILITIES & SHAREHOLDERS EQUITY 4602588

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.