PROBLEM 5-3A
(a)
CUSICK DEPARTMENT STORE Income Statement For the Year Ended December 31, 2012
Sales revenues Sales revenue .................................... ................................ .... Less: Sales returns and allowances.............................. Net sales ............................................ .............................. .............. Cost of goods sold ................................... ............................... .... Gross profit............................................... profit............................................... Operating expenses Salaries and wages expense .... Depreciation expense................. Sales commissions expense ..... Utilities expense ......................... Insurance expense ..................... Property tax expense ................. Total operating expenses.... Income from operations........................... Other revenues and gains Interest revenue................................. ............................. .... Other expenses and losses Interest expense ................................ ............................ .... Net income ................................................ ............................. ...................
Copyright © 2011 John Wiley & Sons, Inc.
$728,000 8,000 720,000 412,700 307,300 $108,000 23,700 14,500 12,000 7,200 4,800
Principles, 10/e, Solutions Manual Weygandt, Accounting Principles,
170,200 137,100 4,000 12,000
8,000 $ 129,100
(For Instructor Use Only)
5-1
PROBLEM 5-3A (Continued) CUSICK DEPARTMENT STORE Owner’s Equity Statement For the Year Ended December 31, 2012 Owner’s Capital, January 1 ........................................................... Add: Net income ..........................................................................
Less: Drawings ............................................................................. Owner’s Capital, December 31 .....................................................
$176,600 129,100 305,700 28,000 $277,700
CUSICK DEPARTMENT STORE Balance Sheet December 31, 2012 Assets Current assets Cash .................................................... Accounts receivable ........................... Inventory ............................................. Prepaid insurance ............................... Total current assets .................... Property, plant, and equipment Buildings ............................................. Less: Accumulated depreciation— buildings .................................. Equipment ........................................... Less: Accumulated depreciation— equipment ................................ Total assets .................................
$ 23,800 50,300 75,000 2,400 $151,500 $290,000 52,500 110,000
237,500
42,900
67,100
304,600 $456,100
PROBLEM 5-3A (Continued) CUSICK DEPARTMENT STORE Balance Sheet (Continued) December 31, 2012 Liabilities and Owner’s Equity
Current liabilities Accounts payable ..................................................... $ 80,300 Mortgage payable (due next year) ........................... 25,000 Interest payable ........................................................ 9,000 Property taxes payable............................................. 4,800 Sales commissions payable .................................... 4,300 Total current liabilities ...................................... $123,400 Long-term liabilities Mortgage payable ..................................................... 55,000 Total liabilities ................................................... 178,400 Owner’s equity 277,700 Owner’s capital ......................................................... Total liabilities and owner’s equity .................. $456,100
(b) Dec. 31
31 31 31
Depreciation Expense ............................. Accumulated Depreciation — Buildings ...................................... Accumulated Depreciation — Equipment ....................................
23,700
Insurance Expense .................................. Prepaid Insurance ............................
7,200
Interest Expense ...................................... Interest Payable ...............................
9,000
Property Tax Expense ............................. Property Taxes Payable...................
4,800
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
10,400 13,300 7,200 9,000 4,800
(For Instructor Use Only)
5-3
PROBLEM 5-3A (Continued) 31 31 (c) Dec. 31
31
31 31
Sales Commissions Expense ............... Sales Commissions Payable .........
4,300
Utilities Expense .................................... Accounts Payable ..........................
1,000
Sales Revenue ...................................... Interest Revenue................................... Income Summary ..........................
728,000 4,000
Income Summary .................................. Sales Returns and Allowances ...... Cost of Goods Sold....................... Salaries and Wages Expense ....... Sales Commissions Expense ....... Property Tax Expense .................. Utilities Expense ........................... Depreciation Expense................... Insurance Expense ....................... Interest Expense ...........................
602,900
Income Summary .................................. Owner’s Capital .............................
129,100
Owner’s, Capital.................................... Owner’s Drawings .........................
28,000
4,300 1,000
732,000 8,000 412,700 108,000 14,500 4,800 12,000 23,700 7,200 12,000 129,100 28,000
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
(For Instructor Use Only)
5-5
(a)
MR. EKO FASHION CENTER Worksheet For the Year Ended November 30, 2012 Account Titles
Trial Balance
Dr. Cash Accounts Receivable Inventory Supplies Equipment Accum. Depreciation— Equipment Notes Payable Accounts Payable Owner’s Capital Owner’s Drawings Sales Revenue Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense Advertising Expense Utilities Expense Maintenance and Repairs Expense Freight-out Rent Expense Totals Supplies Expense Depreciation Expense Interest Expense Interest Payable Totals Net Loss Totals
Adjusted Trial Balance
Adjustments
Cr.
Dr.
Cr.
8,700 30,700 44,700 6,200 133,000 28,000 51,000 48,500 90,000
(d) (a)
300 4,200
(b)
11,500
12,000
Dr.
Cr.
Income Statement
Dr.
Cr.
8,700 30,700 44,400 2,000 133,000 39,500 51,000 48,500 90,000
755,200
* P R
12,000
O
755,200
8,800 497,700
8,800 497,700
140,000 24,400 14,000
140,000 24,400 14,000
140,000 24,400 14,000
12,100 16,700 24,000 972,700
12,100 16,700 24,000
12,100 16,700 24,000
4,200 11,500 4,000
4,200 11,500 4,000
300
Cr.
39,500 51,000 48,500 90,000
755,200
(d)
Dr. 8,700 30,700 44,400 2,000 133,000
12,000
8,800 497,400
Balance Sheet
B L E M 5 -8 A
972,700 (a) (b) (c)
4,200 11,500 4,000 (c) 20,000
4,000 20,000
988,200
4,000 988,200
757,400 757,400
755,200 2,200 757,400
230,800 2,200 233,000
4,000 233,000 233,000
Key: (a) Store supplies used, (b) Depreciation expense—equipment, (c) Accrued interest payable, (d) Adjustment of inventory.
*PROBLEM 5-8A (Continued) (b)
MR. EKO FASHION CENTER Income Statement For the Year Ended November 30, 2012
Sales revenues Sales revenue ............................................. Less: Sales returns and allowances ....................................... Net sales ..................................................... Cost of goods sold ............................................ Gross profit........................................................ Operating expenses Salaries and wages expense .............. Advertising expense............................ Rent expense ....................................... Freight-out
$755,200 8,800 746,400 497,700 248,700 $140,000 24,400 24,000 16,700
*PROBLEM 5-8A (Continued) (b)
MR. EKO FASHION CENTER Income Statement For the Year Ended November 30, 2012
Sales revenues Sales revenue ............................................. Less: Sales returns and allowances ....................................... Net sales ..................................................... Cost of goods sold ............................................ Gross profit........................................................ Operating expenses Salaries and wages expense .............. Advertising expense............................ Rent expense ....................................... Freight-out ........................................... Utilities expense .................................. Maintenance and repairs expense...... Depreciation expense ......................... Supplies expense ................................ Total operating expenses............. Income from operations.................................... Other expenses and losses Interest expense ......................................... Net loss ..............................................................
Copyright © 2011 John Wiley & Sons, Inc.
$755,200 8,800 746,400 497,700 248,700 $140,000 24,400 24,000 16,700 14,000 12,100 11,500 4,200
Weygandt, Accounting Principles, 10/e, Solutions Manual
246,900 1,800 $
4,000 (2,200)
(For Instructor Use Only)
5-7
*PROBLEM 5-8A (Continued) MR. EKO FASHION CENTER Owner’s Equity Statement For the Year Ended November 30, 2012 Owner’s Capital, December 1, 2011 .......................... Less: Net loss ............................................................ Drawings .......................................................... Owner’s Capital, November 30, 2 012 ........................
$90,000 $ 2,200 12,000
14,200 $ 75,800
MR. EKO FASHION CENTER Balance Sheet November 30, 2012 Assets Current assets Cash .................................................. Accounts receivable ........................ Inventory .......................................... Supplies ............................................ Total current assets ................. Property, plant, and equipment Equipment ........................................ Accumulated depreciation — equipment..................................... Total assets ..............................
5-8
Copyright © 2011 John Wiley & Sons, Inc.
$
8,700 30,700 44,400 2,000 $ 85,800
$133,000 39,500
Weygandt, Accounting Principles, 10/e, Solutions Manual
93,500 $179,300
(For Instructor Use Only)
*PROBLEM 5-8A (Continued) MR. EKO FASHION CENTER Balance Sheet (Continued) November 30, 2012 Liabilities and Owner’s Equit y
Current liabilities Notes payable (due next year) ................................. Accounts payable ..................................................... Interest payable ........................................................ Total current liabilities ...................................... Long-term liabilities Notes payable ........................................................... Total liabilities ................................................... Owner’s equity Owner’s capital ......................................................... Total liabilities and owner’s equity ..................
(c) Nov. 30 30
30 30
$20,000 48,500 4,000 $ 72,500 31,000 103,500 75,800 $179,300
Supplies Expense..................................... Supplies ............................................
4,200
Depreciation Expense .............................. Accumulated Depreciation — Equipment .....................................
11,500
Interest Expense ...................................... Interest Payable ................................
4,000
Cost of Goods Sold .................................. Inventory ...........................................
300
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
4,200
11,500 4,000 300
(For Instructor Use Only)
5-9
*PROBLEM 5-8A (Continued) (d) Nov. 30 30
30 30
5-10
Sales Revenue ...................................... Income Summary ..........................
755,200
Income Summary ................................. Sales Returns and Allowances ................................ Cost of Goods Sold ...................... Salaries and Wages Expense....... Advertising Expense .................... Utilities Expense ........................... Maintenance and Repairs Expense ..................................... Freight-out ..................................... Rent Expense ................................ Supplies Expense ......................... Depreciation Expense .................. Interest Expense ...........................
757,400
Owner’s Capital .................................... Income Summary ..........................
2,200
Owner’s Capital .................................... Owner’s Drawings.........................
12,000
Copyright © 2011 John Wiley & Sons, Inc.
755,200
8,800 497,700 140,000 24,400 14,000 12,100 16,700 24,000 4,200 11,500 4,000 2,200
Weygandt, Accounting Principles, 10/e, Solutions Manual
12,000
(For Instructor Use Only)
PROBLEM 5-3B
(a)
THE AKINNUOYE STORE Income Statement For the Year Ended November 30, 2012
Sales revenues Sales revenue .................................... Less: Sales returns & allowances ... Net sales ............................................ Cost of goods sold ................................... Gross profit............................................... Operating expenses Salaries and wages expense ..... Rent expense .............................. Sales commissions expense ..... Depreciation expense ................ Utilities expense ......................... Insurance expense ..................... Freight-out .................................. Property tax expense ................. Total oper. expenses ........... Income from operations........................... Other revenues and gains Interest revenue................................. Other expenses and losses Interest expense ................................ Net income ................................................
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
$700,000 8,000 692,000 507,000 185,000 $96,000 15,000 11,000 11,000 8,500 7,000 6,500 2,500 157,500 27,500 8,000 6,400
1,600 $ 29,100
(For Instructor Use Only)
5-11
PROBLEM 5-3B (Continued) THE AKINNUOYE STORE Owner’s Equity Statement For the Year Ended November 30, 2012 Owner’s Capital, December 1, 2011 ............................................... Add: Net income ............................................................................
Less: Drawings ............................................................................... Owner’s Capital, November 30, 2012 .............................................
$101,700 29,100 130,800 10,000 $120,800
THE AKINNUOYE STORE Balance Sheet November 30, 2012 Assets Current assets Cash ................................................... Accounts receivable ......................... Inventory ........................................... Prepaid insurance ............................. Total current assets .................. Property, plant, and equipment Equipment ......................................... Less: Accumulated depreciation— equipment ..............................
$ 26,000 30,500 29,000 3,500 $ 89,000 $146,000 45,000
Total assets ...............................
5-12
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
101,000 $190,000
(For Instructor Use Only)
PROBLEM 5-3B (Continued) THE AKINNUOYE STORE Balance Sheet (Continued) November 30, 2012 Liabilities and Owner’s Equity
Current liabilities Accounts payable ...................................................... Sales commissions payable ..................................... Property taxes payable.............................................. Total current liabilities ....................................... Long-term liabilities Notes payable ............................................................ Total liabilities .................................................... Owner’s equity Owner’s capital .......................................................... Total liabilities and owner’s equity ...................
(b) Nov. 30
$25,200 4,500 2,500 $ 32,200 37,000 69,200 120,800 $190,000
Depreciation Expense .............................. Accumulated Depreciation — Equipment .....................................
11,000
Insurance Expense................................... Prepaid Insurance.............................
7,000
Property Tax Expense .............................. Property Taxes Payable ...................
2,500
Sales Commissions Expense .................. Sales Commissions Payable ...........
4,500
Copyright © 2011 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 10/e, Solutions Manual
11,000 7,000 2,500 4,500
(For Instructor Use Only)
5-13
PROBLEM 5-3B (Continued) (c) Nov. 30
30
30 30
5-14
Sales Revenue ........................................ Interest Revenue .................................... Income Summary ............................
700,000 8,000
Income Summary ................................... Sales Returns and Allowances .................................. Cost of Goods Sold ........................ Salaries and Wages Expense......... Depreciation Expense .................... Freight-out ....................................... Sales Commissions Expense ........ Insurance Expense ......................... Rent Expense .................................. Property Tax Expense .................... Utilities Expense ............................. Interest Expense .............................
678,900
Income Summary ................................... Owner’s Capital ...............................
29,100
Owner’s Capital ...................................... Owner’s Drawings...........................
10,000
Copyright © 2011 John Wiley & Sons, Inc.
708,000
8,000 507,000 96,000 11,000 6,500 11,000 7,000 15,000 2,500 8,500 6,400 29,100
Weygandt, Accounting Principles, 10/e, Solutions Manual
10,000
(For Instructor Use Only)
