Answer #1

Saleem
Income Statement for Dec 31, 2012
sales revenue 240000
less:sales return -900
net sales revenue 239100
commission income 2500
total revenue 241600
cost of goods sold -25100
gross profit 216500
less:operating expenses:
salaries expense 8000
advertising expenses 3000
miscellaneous expenses 2000
office supplies expenses 1000
carriage outward 200
depreciation 2656
total operating expenses -16856
EBIT 199644
less:interest expenses -500
add:interest income 400
EBT 199544
less:tax (20%) -39909
EAT 159635
Saleem
Balance Sheet as of Dec 31, 2012
Liabilities Amount Assets
current liabilities current assets
a/c payable 5500 cash
bank over draft 7500 a/c receivable
notes payable 5000 invenotry
tax payable 39909 prepaid rent
commission unearned 800 total current assets
total current liabilities 58709 equipment 132800
long term loan 10000 dep -2656
total liabilities 68709
stockholders equity
capital 39800
profit 159635
total liabilities and stockholders equity 268144 total assets
Amount

105000
20000
7000
6000
138000

130144
268144
 Answer #2
income statement
particulars ammount
revenue
sales 575000
minus return 12000 563000
interest income 27000
total 59000
expencess
purchases (net) 268700
changes in inventry 17200
27800-45000
marketing expense 12500
other expense 6000
office supplies 3500
transportation in 22000
salaries expense 65000
bad debts 175000 x 8750
depriciation 22500
ebit 198250

interest expence 16000

ebt 182250
tax @ 2 % 2645
eat 178605
note
not bad debt expense on receivable @ 5 % will be deducted from Account receivable change to p/l
depereciation will deducted from the balance of office equipment

balance sheet
Asset
non current asset non current liabilty
office equipment 320500 long term loan 50000
current laibitly
current assest account payable 35000
cash 45000 short term loan 55000
account receivable 166250 bills payable 22700
prepaid adverhsing 8500 tax payable 3645 116345
inventry 45000 264750 total 567250
total 567250

liabilities and capital

capital 222300
profit 178605 400905
 Answer #1
AUSTIN SOUND SERENO CENTER INC.,
Worksheet for Adjusted Trial Balance
TITLE OF ACCOUNT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Cash 110,350 110,350           -  
Account receivable     54,600     54,600           -  
Note receivable      8,000      8,000           -  
Interest receivable           -             -             -  
Inventory-opening     40,500     42,000     40,500     82,500     40,500
Supplies         650         650           -  
Prepaid insurances      1,200      1,200           -  
Furniture and Fixture 183,200 183,200           -  
Accumulated depreciation - furniture      2,400         600           -        3,000
Account payable     47,000           -       47,000
Note payable (long term)     12,600           -       12,600
Capital - Frank 100,000      1,500           -   101,500
Sales revenue 338,000           -   338,000
Sales discount      1,400      1,400           -  
Sales return and allowance      2,000      2,000           -  
Interest revenue         600           -           600
Purchases     89,300     89,300           -  
Purchases discount      3,000           -        3,000
Purchases return and allowances      1,200           -        1,200
Freight in      5,200      5,200           -  
Rent expense      8,400      8,400           -  
Depreciation         600         600           -  
504,800 504,800     42,600     42,600 547,400 547,400

AUSTIN SOUND SERENO CENTER INC.,

Income Statement for the year ended December 31,2012

Sales revenue 338,000

Less:
Sales discount     (1,400)
Sales return and allowance     (2,000)
Net sales 334,600

Other income
Interest revenue         600
Total revenue 335,200
 Opening Inventory     40,500
Add:
Purchases     89,300
       Less:
       Purchases discount     (3,000)
       Purchases return and allowances
    (1,200)
Freight in      5,200
Less: Closing Inventory    (42,000)
Cost of Goods Sold     88,800
Gross profit 246,400

Operating expenses
Rent expense      8,400
Depreciation         600
Total expenses      9,000
Earnings before interest and tax 237,400
Tax @ 40%     94,960
Earnings after tax 142,440

AUSTIN SOUND SERENO CENTER INC.,

Classified Balance Sheet
for the year ended December 31,2012
Current assets
Cash 110,350
Account receivable     54,600
Note receivable      8,000
Inventory     42,000
Supplies         650
Prepaid insurances      1,200
Total current assets 216,800

Non-current assets
Furniture and Fixture 183,200
Accumulated depreciation - fur     (3,000)
Total non-current assets 180,200
Total assets 397,000

Current liabilities
Account payable     47,000
Accrued tax expenses     94,960
Total current liabilities 141,960
Non-current liabilities
Note payable (long term)     12,600
Total liabilities 154,560

Owner's equity
Capital - Frank 100,000
Add: Profit for current year 142,440
Total owner's equity 242,440
Total liabilities owner's equity 397,000