Selected accounts of Olsevik Janitorial; Supplies, at July 31, 2017, are listed

Question

Selected accounts of Olsevik Janitorial; Supplies, at July 31, 2017, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the Selling Expenses account and General Expenses account. Olsevik Janitorial Supplies used to periodic inventory system.

AP - 102,000
AR - 117,000
Accumulated Amortization Equipment - 61,500
B. Olsevik, capital - 863,400
B. Olsevik, withdrawals - 42,300
Cash - 46,200
Equipment - 484,000
General Expenses - 284,250
Interest Expense - 10,200
Interest Payable - 8,800
Interest Revenue - 1,500
Inventory (July 31/16) - 730,000
Inventory (July 31/17) - 525,000
Notes payable, long term - 500,000
Purchases - 1,361,000
Salaries Payable - 23,000
Salaries Discounts - 25,000
Sales Returns & Allowances - 52,800
Sales Revenue - 1,891,200
Selling Expenses - 317,250
Supplies - 16,200
Unearned SR - 34,800

1. Prepare the business's single step income statement for the year ended July 31, 2017.
2. Prepare the statement of owner's equity at July 31, 2017
3. Prepare classified balance sheet in report format at July 31, 2017

Explanation / Answer

STATEMENT OF INCOME Amount $ Sales 1891200 Less: sales return and allownce -52800 Net sales revenue 1,838,400 Interest Revenue 1,500 Gross revenue 1,839,900 Less: Operating expense    COGS (730000+1361000-525000) 1,566,000 General expense 284,250 Selling expense 317,250 Interest expense 10,200 Salaries 25,000 2202700 Net Income Earned -362,800 STATEMENT OF OWNER'S EQUITY Amount $ Beginning Capital 863,400 Less: Drawings 42,300 Add: Net income earned -362,800 Ending Capital 458,300 BALANCE SHEET Amount $ ASSETS: Current Assets: Cash 46,200 Accounts Receivable 117000 Supplies 16200 Merchandise Inventory 525,000 704400 Fixed Assets: Equipment 484,000 Less: Accumulated Dep 61,500 422,500 TOTAL ASSETS 1,126,900 LIABILITIES: Current Liabilities: Accounst Payable 102,000 Unearned revenue 34,800 Interest payaable 8,800 Salaries payable 23,000 168,600 Long term notes payable 500,000 Total Liabilities: Owner's equity 458,300 TOTAL LIABILITIES & EQUITY 1,126,900

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