Lawrence Company, Inc. December 31, 2017 Adjusted Trial balance Debit Credit 45,

Question

Lawrence Company, Inc. December 31, 2017 Adjusted Trial balance Debit Credit 45,000 44,900 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable 2,000 80,000 2,400 5,000 40,000 16,500 16,000 41,000 Interest Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2017) Dividends Sales Sales Returns& Allowances Sales Discounts Cost of Goods Sold Delivery Expense Depreciation Expense Bad Debt Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Revenue 18,000 15,000 18,000 7,000 65,000 106,000 2,500 2,000 539,500 7,600 3,000 51,000 2,000 19,000 2,000 98,000 40,000 195,000 15,500 2,400 7,000 Loss on Disposal Interest Expense Income Tax Expense Total ,500 36,000 775,400 775,400 Part 2a: Prepare a Multi-step Income Statement ALL PAGES OF THIS DOCUMENT MUST BE UPLOADED TO D2L

Explanation / Answer

STATEMENT OF INCOME Amount $ Sales 539500 Less: Sales return 7600 Less: sales discount 3000 Net sales revenue 528,900 Cost of Goods sold 51,000 Gross margin 477,900 Less: Operating expense Delivery expense 2000 Depreciation 19000 bad debts 2000 Rent expense 98000 Insurance expense 40000 Wages expense 195000 Ssupplies expense 15500 Ttotal Operating expense 371500 Add:: Non operating income Interest revenue 2400 Less: Non operating expense Interest expense Interest expense 6500 Loss on disposal 7000 13500 Net income before tax 95300 Less: tax 36000 Net Income Earned 59300 STATEMENT OF RETAINED EARNINGS Amount $ Beginning balance 2,500 Less: Dividend 2,000 Add: Net income earned 59,300 Ending balance 59,800 BALANCE SHEET Amount $ ASSETS: Current Assets: Cash 45,000 Accounts Receivable 44,900 Less: Allowance 2,000 42900 Short term note reeivable 80000 Interest receivable 2400 Supplies 5000 Merchandise Inventory 16,500 Prepaid Insurance 40,000 231,800 Fixed Assets: Vehicle 16,000 Equipment 41,000 Less: Accumulated Dep 18,000 39,000 TOTAL ASSETS 270,800 LIABILITIES: Current Liabilities: Unearned revenue 18000 Accounts payable 15,000 Wages payable 7,000 40,000 Long term notes payable 65,000 Stockholder' equity Common Stock 106000 Retained earnings 59800 165,800 TOTAL LIABILITIES 270,800

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