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Exercise 1 - Bargain Stores Incorporated - CHECK

1) The document contains accounting information for Bargain Stores including items such as inventory, income, expenses, assets, liabilities, and equity. 2) It provides income statement, balance sheet, and statement of retained earnings information for the company with items categorized and amounts listed. 3) Key figures include net income of $36,000, total assets of $1,274,000, total liabilities of $674,000, and retained earnings of $564,000.

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Mayra Stephanie Díaz Núñez
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58 views

Exercise 1 - Bargain Stores Incorporated - CHECK

1) The document contains accounting information for Bargain Stores including items such as inventory, income, expenses, assets, liabilities, and equity. 2) It provides income statement, balance sheet, and statement of retained earnings information for the company with items categorized and amounts listed. 3) Key figures include net income of $36,000, total assets of $1,274,000, total liabilities of $674,000, and retained earnings of $564,000.

Uploaded by

Mayra Stephanie Díaz Núñez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Exercise 1

Bargain Stores Incorporated

Item Description Amount Type


1 Inventory, March 31, 2014 758.00 Income
2 Gross income (profit) 857.00 Income
3 Long-term notes payable 31.00 Balance Liabilitie
4 Store fixtures, net 144.00 Balance Asset
5 Selling expenses 341.00 Income
6 Accounts payable 288.00 Balance Liabilitie
7 Income tax expense 12.00 Income
8 Reatined earnings, April 1, 2013 540.00 Retained Earnings
9 Cash 48.00 Balance Asset
10 General and administrative 432.00 Income
11 expenses
Accrued expenses payable 96.00 Balance Liabilitie
12 Accounts receivable 324.00 Balance Asset
13 Dividends 12.00 Retained Earnings
14 Notes payable 252.00 Balance Liabilitie
15 Inventory, April 1, 2013 684.00 Income
16 Common stock 36.00 Balance Equity
17 Sales 3,398.00 Income
18 Depreciation expense 36.00 Income
19 Income tax payable 7.00 Balance Liabilitie
20 Store fixtures, cost 180.00 Balance Asset
Nº Item Amount Cat 1
Inventory, March 31, 2014 758.00 Income
Gross income (profit) 857.00 Income
Selling expenses 341.00 Income
Income tax expense 12.00 Income
General and administrative expenses 432.00 Income
Inventory, April 1, 2013 684.00 Income
Sales 3,398.00 Income
Depreciation expense 36.00 Income

Exercise 4
INCOME STATEMENT

SALES

Gross Sales
Less: Sales returns and discounts
Net sales 3,398.00

COST OF GOODS SOLD (VARIABLE COST)


Inventory, April 1, 2013 684.00
Plus: Net Purchases 2,615.00
Less: Inventory, March 31, 2014 - 758.00
Cost of goods sold 2,541.00

Gross income 857.00

OPERATIVE COST (FIXED COST)

Operating expenses:
General and administrative expenses 432.00
Selling expenses 341.00
Depreciation expense 36.00
Total operating expenses 809.00

Income from operations 48.00

OTHER INCOMES / EXPENSES


Plus: Other income -
Less: Other expenses, interest -
-

Net income before tax 48.00


Estimated income tax - 12.00
Net income after tax (2014) 36.00
Cat 2
Nº Item
Store fixtures, net 144.00
Cash 48.00
Accounts receivable 324.00
Store fixtures, cost 180.00
Inventory, March 31, 2014 758.00
Common stock 36.00
Long-term notes payable 31.00
Accounts payable 288.00
Accrued expenses payable 96.00
Notes payable 252.00
Income tax payable 7.00

BALANCE SHEET

ASSETS
Current assets:
Cash 48.00
Accounts receivable 324.00
Inventory 758.00
Total current assets

Store fixtures:
Store fixtures, cost 180.00
Less: Accumulated Depreciation - 36.00
Total Store fixtures (net)

TOTAL ASSETS

LIABILITIES AND SHAREHOLDER'S EQUITY

LIABILITIES

Current Liabilities:
Accounts payable 288.00
Accrued expenses payable 96.00
Notes payable 252.00
Income tax payable 7.00
Total current lialibilities:

Long-term liabilities:
Long-term notes payable 31.00
Total long-term liabilities

TOTAL LIABILITIES
SHAREHOLDER'S EQUITY

Capital stock:
Common stock 36.00
Total capital stock

Retained earnings, 2014

SHAREHOLDER'S EQUITY

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY


Cat 1 Cat 2
Balance Asset
Balance Asset
Balance Asset
Balance Asset
Balance Asset
Balance Equity
Balance Liabilitie
Balance Liabilitie
Balance Liabilitie
Balance Liabilitie
Balance Liabilitie

1,130.00

144.00

1,274.00

643.00

Reatined earnings, April 1, 2013


Dividends
31.00

674.00
STATEMENT OF RETAINED EARNINGS

Retained earnings, 2013


36.00 Net income for the year, 2014

564.00 Dividends paid


Less: Dividends
600.00 Total Dividends paid

1,274.00 Retained earnings, 2014


540.00 Retained Earnings
12.00 Retained Earnings
540.00
36.00
576.00

12.00
12.00

564.00

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