Sanders Corporation Account balances as of December 31, 2015 S 17,000 $ -1,900 2

Question

Sanders Corporation Account balances as of December 31, 2015 S 17,000 $ -1,900 2,922 20,000 Interest Payable Miscellaneous Expense Bad Debt Expense Notes Receivable (due 3/1/2016) Building Interest Receivable Rent Income Depreciation Expense Accumulated Depreciation - Building Accumulated Depreciation-Equip Interest Expense Equipment Unearned Rent Retained Earnings Insurance Expense 594 428 170 1,320 $ 15,320 Sales Revenue Accounts Payable Cash Common Stock Interest Income Prepaid Insurance 90 $ 1,500 $180 S 600 $ 2,010o $ 10,490 6,830 6,600 $ 900 2,700 $ 600 150 384 264 120 594 Land Loss on sale of land Income Tax Payable Inventory Cost of Goods Sol Account Receivable $ -2,120 I Notes Payable (due 3/30/17) Salaries Payable Salaries Expense 300 900 270 Income Tax Expense Prepare a multiple step income statement and a classified balance sheet in good form.

Explanation / Answer

Sanders Corporation Income Statement For the year ended December 31, 2015 $ $ Sales revenue 17000 Sales return and allowances 0 Sales discounts 0 Net Sales 17000 Cost of goods sold 10490 Gross margin 6510 Expenses: Bad debt expenses 170 Salaries expense 2700 Insurance expense 270 Interest expense 594 Depreciation expense 384 Loss on sale of Land 180 Miscellaneous expense 428 Total expenses 4726 Other income Rent income 150 Interest revenue 66 Total other income 216 Income before taxes 2000 Income tax expenses 600 Net Income 1400 Sanders Corporation Balance Sheet As at December 31, 2015 $ $ Assets Current assets Cash 2922 Accounts receivable 6830 Less: Allowance for doubtful accounts 0 6830 Merchandise inventory 2010 Note receivable 1320 Interest receivable 66 Prepaid insurance 90 Total current assets 13238 Fixed assets Land 1500 Building 15320 Accumulated depreciation - Building -264 15056 Equipment 2120 Accumulated depreciation - Equipment -120 2000 Total fixed assets 18556 Total assets 31794 Liabilities & stockholders' equity Liabilities Current Liabilities Accounts payable 1900 Unearned rent 300 Salaries payable 900 Interest payable 594 Income tax payable 600 Total current liabilites 4294 Long-term liabilites Note payable 6600 Total Long-term Liabilities 6600 Stockholders' equity Common stock 20000 Additional paid-in-capital-CS 0 Retained earnings 900 Total stockholders' equity 20900 Total Liabilities & stockholders' equity 31794

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