Part A: Complete the Gross PPE and Accumulated Depreciation T-Accounts for 2022, including beginning and ending balances, and all changes throughout the year: Part B: Complete the following journal entries: Sales Revenue CGS Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income Declan's Designs Income Statement For the Year Ending 12/31/2022 $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Declan's Designs Balance Sheet ASSETS Current Assets 12/31/2021 12/31/2022 Cash and Cash Equivalents $90,000 $294,000 Accounts Receivable, Net 97,000 101,000 Merchandise Inventory 400,000 475,000 Total Current Assets 587,000 870,000 PPE, Net 62,000 70,000 Goodwill, Net 600,000 600,000 Total Assets $1,249,000 $1,540,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 26,000 17,000 Interest Payable 3,000 5,000 Dividends Payable Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities Shareholder's Equity Preferred Stock 20,000 10,000 49,000 32,000 500,000 500,000 0 200,000 549,000 732,000 0 0 Common Stock 8,000 10,000 Additional Paid in Capital 54,000 60,000 Retained Earnings 638,000 738,000 Total Shareholder's Equity 700,000 808,000 Total Liabilities & Shareholders' Equity $1,249,000 $1,540,000
Part A: Complete the Gross PPE and Accumulated Depreciation T-Accounts for 2022, including beginning and ending balances, and all changes throughout the year: Part B: Complete the following journal entries: Sales Revenue CGS Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income Declan's Designs Income Statement For the Year Ending 12/31/2022 $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Declan's Designs Balance Sheet ASSETS Current Assets 12/31/2021 12/31/2022 Cash and Cash Equivalents $90,000 $294,000 Accounts Receivable, Net 97,000 101,000 Merchandise Inventory 400,000 475,000 Total Current Assets 587,000 870,000 PPE, Net 62,000 70,000 Goodwill, Net 600,000 600,000 Total Assets $1,249,000 $1,540,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 26,000 17,000 Interest Payable 3,000 5,000 Dividends Payable Total Current Liabilities Mortgage Payable Long-Term Bank Loan Total Liabilities Shareholder's Equity Preferred Stock 20,000 10,000 49,000 32,000 500,000 500,000 0 200,000 549,000 732,000 0 0 Common Stock 8,000 10,000 Additional Paid in Capital 54,000 60,000 Retained Earnings 638,000 738,000 Total Shareholder's Equity 700,000 808,000 Total Liabilities & Shareholders' Equity $1,249,000 $1,540,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
Related questions
Question
Accounting Subject step by step solutions
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning