Acct 2210 Zeigler: P7-24A – Canvas Homework Solution - Pg 397
Multi-Step Income Statement & Balance Sheet (Confirm your work)
(See Posted Excel file as well)
Legg Company
Income Statement
For the Year Ended December 31, 2013
Sales Revenue
$350,000
Cost of Goods Sold
(225,000)
Gross Margin
Operating Expenses
Operating Expenses
Salaries Expenses
Uncollectible Accounts Expense
Total Operating Expenses
Operating Income
Non-Operating Items
Interest Revenue
Net Income
PROBLEM 7-24A (cont.)
125,000
$45,000
61,200
9,600
(115,800)
9,200
12,000
$ 21,200
Legg Company
Balance Sheet
As of December 31, 2013
Assets
Assets
(Listed in Order of Liquidity – see pg 377)
Cash
Accounts Receivable
Less: Allow. for Doubtful Accounts
Merchandise Inventory
Interest Receivable
Prepaid Rent
Supplies
Notes Receivable
Land
Total Assets
$ 16,700
$92,000
(6,500)
85,500
105,000
2,100
16,000
4,500
15,000
45,000
$289,800
Liabilities and Stockholders’ Equity
Liabilities
Accounts Payable
Unearned Revenue
Salaries Payable
$ 48,000
40,000
10,500
Total Liabilities
Stockholders’ Equity
Common Stock
Retained Earnings
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity
$ 98,500
60,000
131,300*
191,300
$289,800
*Ending R/E balance must be computed: $120,100, Beg. Retained Earnings +
$21,200, Net Income  $10,000, Dividends = $131,300