Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 3.17S
LO 5
(Learning Objective 5: Make closing entries and calculate net income) The adjusted
- 1. Prepare the closing entries for revenues, expenses, and dividends for the year.
- 2. What was net income for the year?
- 3. What is the ending balance of retained earnings after the closing entries are posted?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning and end of the year,
respectively. Net income and sales for the year are $150,000 and $1,000,000, respectively.
What is ATLF's profit margin?
Select one:
a. 10%
Ob. 8%
O c. 7.5%
O d. 15%
e. 12%
PROBLEM
Below are selected accounts taken from the adjusted trial balance of Bernie's Boxes on December 31, 2020.
Operating expenses $1,000
Sales revenue 5,000
Finished good inventory Jan 1st 1,500
Purchases 1,200
Interest revenue 100
Extraordinary loss (pre-tax) 400
Finished goods inventory Dec 31 ?
Income tax expense 642
Bernie's Boxes has 2,000 shares of common stock outstanding and net income per share for 2020 was $0.61. The income tax is 30%
REQUIRED:
Prepare a multiple-step income statement
The following financial statement was prepared by employees of Walters Corporation.
Walters CorporationIncome StatementYear Ended December 31, 2020
Revenues
Gross sales, including sales taxes
$1,044,300
Less: Returns, allowances, and cash discounts
56,200
Net sales
988,100
Dividends, interest, and purchase discounts
30,250
Recoveries of accounts written off in prior years
13,850
Total revenues
1,032,200
Costs and expenses
Cost of goods sold, including sales taxes
465,900
Salaries and related payroll expenses
60,500
Rent
19,100
Delivery expense and freight-in
3,400
Bad debt expense
27,800
Total costs and expenses
576,700
Income before other items
455,500
Other items
Loss on discontinued styles (Note 1)
71,500
Loss on sale of marketable securities (Note 2)
39,050
Loss on sale of warehouse (Note…
Chapter 3 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 3 - If Oxbow Corporation dees not record a sale mace...Ch. 3 - Which of the following transactions would be...Ch. 3 - A physician performs medical services for a...Ch. 3 - The Animal Adventure zoo gift shop sells stuffed...Ch. 3 - According to U S GAAP, when should revenue be...Ch. 3 - Prob. 6QCCh. 3 - Prob. 7QCCh. 3 - Prob. 8QCCh. 3 - What data flows from the statement of retained...Ch. 3 - Which financial statement reports assets,...
Ch. 3 - A companys balance of retained earnings on January...Ch. 3 - Prob. 12QCCh. 3 - All of the following accounts are temporary...Ch. 3 - Prob. 14QCCh. 3 - Prob. 15QCCh. 3 - Prob. 16QCCh. 3 - Prob. 3.1ECCh. 3 - LO 1 (Learning Objective 1: Explain how accrual...Ch. 3 - LO 1 (Learning Objective 1: Explain how accrual...Ch. 3 - Prob. 3.3SCh. 3 - (Learning Objective 2: Apply the revenue and...Ch. 3 - (Learning Objective 2: Apply the revenue and...Ch. 3 - Prob. 3.6SCh. 3 - LO 3 (Learning Objective 3: Adjust the accounts)...Ch. 3 - LO 3 (Learning Objective 3: Adjust the accounts...Ch. 3 - LO 3 (Learning Objective 3: Adjust the accounts...Ch. 3 - LO 3 (Learning Objective 3: Adjust the accounts...Ch. 3 - Prob. 3.11SCh. 3 - Prob. 3.12SCh. 3 - Prob. 3.13SCh. 3 - LO 4 (Learning Objective 4: Construct the...Ch. 3 - LO 4 (Learning Objective 4: Construct the...Ch. 3 - Prob. 3.16SCh. 3 - LO 5 (Learning Objective 5: Make closing entries...Ch. 3 - Group A LO 1, 2 (Learning Objectives 1. 2: Explain...Ch. 3 - LO 1, 3 (Learning Objectives 1, 3: Explain how...Ch. 3 - Prob. 3.20AECh. 3 - LO 3 (Learning Objective 3: Adjust the accounts)...Ch. 3 - Prob. 3.22AECh. 3 - LO 4 (Learning Objective 4: Construct the...Ch. 3 - LO 3, 4 (Learning Objectives 3, 4: Adjust the...Ch. 3 - (Learning Objective 5: Close the books) Prepare...Ch. 3 - LO 3, 5 (Learning Objectives 3. 5: Adjust the...Ch. 3 - Prob. 3.27AECh. 3 - LO 6 (Learning Objective 6: Analyze and evaluate...Ch. 3 - LO 1, 2 (Learning Objectives 1, 2: Explain how...Ch. 3 - LO 1, 3 (Learning Objectives 1. 3: Explain how...Ch. 3 - LO 2, 3 (Learning Objectives 2, 3: Apply the...Ch. 3 - LO 3 (Learning Objective 3: Adjust the accounts)...Ch. 3 - LO 3, 4 (Learning Objectives 3. 4: Adjust the...Ch. 3 - LO 4 (Learning Objective 4: Construct the...Ch. 3 - LO 3,4 (Learning Objectives 3,4: Adjust the...Ch. 3 - LO 5 (Learning Objective 5: Close the books)...Ch. 3 - LO 3, 5 (Learning Objective 3, 5: Adjust the...Ch. 3 - LO 3, 5 (Learning Objective 3, 5: Adjust the...Ch. 3 - LO 6 (Learning Objective 6: Analyze and evaluate...Ch. 3 - Prob. 3.40SECh. 3 - Questions 41-43 are based on the following facts:...Ch. 3 - Prob. 3.42QCh. 3 - Prob. 3.43QCh. 3 - Using the accrual basis, in which month should...Ch. 3 - On January 1 of the current year. Oliver Company...Ch. 3 - Assume the same facts as in question 3-45....Ch. 3 - What effect does the adjusting entry in question...Ch. 3 - Prob. 3.48QCh. 3 - Prob. 3.49QCh. 3 - The Unearned Revenue account of Melrose...Ch. 3 - What is the effect on the financial statements of...Ch. 3 - For 2018. Broadview company had revenues in excess...Ch. 3 - Which of the following accounts would not be...Ch. 3 - Prob. 3.54QCh. 3 - Prob. 3.55QCh. 3 - Unadjusted net income equals 5,500. Calculate what...Ch. 3 - Salary Payable at the beginning of the month...Ch. 3 - Group A LO 1 (Learning Objective 1: Explain how...Ch. 3 - (Learning Objective 3: Adjust the accounts)...Ch. 3 - Prob. 3.60APCh. 3 - (Learning Objective 3: Adjust the accounts)...Ch. 3 - LO 4. 6 (Learning Objectives 4, 6: Construct the...Ch. 3 - LO 5 (Learning Objective 5: Close the books, and...Ch. 3 - LO 5 P3-63A (Learning Objective 5: Close the...Ch. 3 - Prob. 3.65APCh. 3 - LO 1 (Learning Objective 1: Explain how Accrual...Ch. 3 - LO 3 (Learning Objective 3: Adjust the accounts)...Ch. 3 - Prob. 3.68BPCh. 3 - LO 3 (Learning Objective 3: Adjust the accounts)...Ch. 3 - Prob. 3.70BPCh. 3 - Prob. 3.71BPCh. 3 - LO 5 (Learning Objective 5: Close the books,...Ch. 3 - Prob. 3.73BPCh. 3 - Prob. 3.74CEPCh. 3 - Prob. 3.75CEPCh. 3 - Prob. 3.76CEPCh. 3 - Prob. 3.77SCCh. 3 - LO 3, 6 (Learning Objectives 3, 6: Adjust the...Ch. 3 - Prob. 3.79DCCh. 3 - Prob. 3.80DCCh. 3 - Prob. 3.81EICCh. 3 - Prob. 3.82EICCh. 3 - Prob. 1FFCh. 3 - Prob. 1FACh. 3 - Group Project After completing his electrical...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On December 31, Harper Inc., reported, on its year-end financial statements, the following (in millions): Year 2 Year 1 Total assets $10,385 $10,472 Total sales $6,296 $6,295 Net income $692 $790 Calculate return on assets (ROA) for Year 2. Select one: a. 6.7% b. None of the these are correct. c. 60.6% d. 6.6% e. 60.4%arrow_forward6. The following information are extracted from the books and records of the Company and its branch. The balances are at December 31,2021, the third year of the corporation's existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed * Home Office Branch Books P 720,000 240,000 Books Sales Expenses Shipments from home office Allowance for overvaluation of branch inventory 432,000 P 87,000arrow_forward6. The following information are extracted from the books and records of the Company and its branch. The balances are at December 31,2021, the third year of the corporation’s existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closedarrow_forward
- An entity reported operating expenses other than interest expense for the year at 40% of cost of goods sold butonly 20% of sales. Interest expense is 5% of sales. The amount purchased is 120% of cost of goods sold. Endinginventory is twice as much as the beginning inventory. The net income for the year is P2,100,000. The incometax is 30%.Question 1: What is the amount of sales for the year?a. 10,000,000 c. 18,000,000b. 15,000,000 d. 12,000,000Question 2: What is the amount of purchases?a. 6,000,000 c. 3,000,000b. 7,200,000 d.3,600,000arrow_forwardE12-24B Vertical analysis (Learning Objective 2) 15-20 min. Simpson Painting, Inc., requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. Round to the nearest tenth of a percent. P. Donnelly, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 Revenue Expenses: Cost of Goods Sold Selling and General Expenses Interest Expense Income Tax Expense Total Expenses Net Income 2018 $500,000 $245,000 111,000 10,000 54,700 420,700 $ 79,300 2017 $439,500 $236,000 103,500 6,500 44,400 390,400 $ 49,100arrow_forward10. Nu Company reported the following pretax data for its first year of operations. Net sales 2,800 Cost of goods available for sale 2,500 Operating expenses 880 Effective tax rate 25 % Ending inventories: If LIFO is elected 820 If FIFO is elected 1,060 What is Nu's net income if it elects FIFO? a. 480 b. 360 c. 1360 d. 180arrow_forward
- Saunderstown Company reported the following pretax data for its first year of operations. Net sales Cost of goods available for sale Operating expenses Effective tax rate Ending inventories: If LIFO is elected If FIFO is elected Gross profit ratio $2,950 $2,480 $ 700 % 30% What is Saunderstown's gross profit ratio if it elects LIFO? (Round your answer to the nearest whole percentage.) 990 $ $1,250arrow_forwardNueva Company reported the following pretax data for its first year of operations. Net sales 7,530 Cost of goods available for sale 5, 750 Operating expenses 1,718 Effective tax rate 15% Ending inventories: If LIFO is elected 630 If FIFO is elected 809 What is Nueva's net income if it elects FIFO?arrow_forwardKon Ltd was incorporated on 1.8.2013 to take over the running business of Sowmya Ltd. as from 1.4.2013. Figures of the company for the year ending 31.3.2014 were as follows: To Salaries and Allowances By Gross profit 60,000 23,000 2,00,000 To Rent and taxes To General expenses 7,200 To Director's fees 3,000 To Selling expenses 4,000 To Discount on sales 1,000 7,500 To Advertisement To Preliminary expenses 3,300 written off To Interest on debentures 1,400 To Interest to Vendors (up to 30.09.2013) To Repairs to buildings To Depreciation 6,000 1,200 2,400 To Net Profit 80,000 2,00,000 Total Total 2,00,000 Additional Information: a) Rent was paid at $ 1,000 p.m. up to 1.8.2013 and thereafter it was increased to $ 2,000 p.m.arrow_forward
- Melville Corporation provided the following partial-trial balance for the current year Prepare a single-step income statement for the year ended December 31. Melville is subject to a 40% income tax rate. (Round all amounts to the nearest whole dollar.) Melville Corporation Trial Balance (Selected Accounts) For the Year Ended December 31 Account Debit Credit Dividends $1,400 Sales $120,000 Dividend Income 590 Interest Income 900 Gain on Disposal of Plant Assets 1,100 Unrealized Gain on Trading Investments 1,700 Cost of Goods Sold 45,000 Office Supplies Expense 4,100 Sales Salaries Expense 3,300 Selling Expenses 15,000 Accounting and Legal Fees—General Expense 830 Advertising Expense 3,800 Office Salaries Expense 6,600 Depreciation Expense—General Expense 9,400 Interest Expense 2,200 Loss on Asset Impairment 2,400arrow_forward(Learning Objective 2: Analyze accounts payable turnover) Barnacle Sales, Inc.’s,comparative income statements and balance sheets show the following selected information for2017 and 2018:2018$2,850,000$ 800,000$ 600,000$ 305,0002017$2,700,000$ 600,000$ 400,000$ 255,000Cost of goods sold.......................................................Ending inventory.........................................................Beginning inventory ....................................................Average accounts payable ...........................................Requirements1. Calculate the company’s accounts payable turnover and days’ payable outstanding (DPO)for 2017 and 2018.2. On the basis of this computation alone, has the company’s liquidity position improved ordeteriorated during 2018?arrow_forwardThe balance sheet of Hidden Valley Farms reports total assets of $900,000 and $1,010,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Hidden Valley's net income for the year? Multiple Choice $10,100,000. $9,550,000. $95,500. $101,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License