Question

Can you please answer the excercise above?

Cost of Goods Sold K AA Problem 5-9A Financial Statements LO2 3 A list of accounts for Lloyd Inc. at December 31, 2017, follows: Accounts Receivable $56,359 Net purchases Retained Eamings, January 1, 2017 Salanes Payable Net sales Transportation in Utities Expense Wages and Salaries Expense Wages Payable $ 61,608 28.252 Advertising Expense 12,000 Capital Stock Cash Dividends 50,000 650 22.340 111,760 6,000 375 Income Tax Expense 1,450 1450 1800 Income Tax Payable 23.000 Inventory January 1, 2017 December 31, 2017 120 6400 5.900 Required 1. Determine cost of goods sold for 2017. 2. Determine net income for 2017. 3. Prepare a balance sheet dated December 31, 2017. X

Answer 1

1. Cost of Goods Sold = Opening Inventory + Purchases - Ending Inventory

= $6400+$61608-$5900

= $ 62,108

Thus, Cost of Goods Sold (COGS) for 2017 = $ 62,108

2. Net Income for 2017:

Description	Ref	Amount ($)
Net Sales	A	111,760.00
Less: COGS	B	62,108.00
Gross Profit	C=A-B	49,652.00
Less: Operating Expense
Wages & Salaries Exp		23,000.00
Utilities		1,800.00
Transportation		375.00
Advertising Expense		12,900.00
Total Operating Expense	D	38,075.00
Operating Profit	E=C-D	11,577.00
Less: Non-Operating Expense
Dividend		6,000.00
Income Tax Expense		1,450.00
Total Non-Operating Expenses	F	7,450.00
Net Income	G=E-F	4,127.00

3. Balance Sheet as at December 31, 2017:

Balance Sheet of Lloyd Inc
As of December 31, 2017
Assets	Amount ($)	Liabilities & Equity	Amount ($)
Current Assets		Current Liabilities
Cash on Hand	22,340	Salary Payable	650
Ending Inventory	5,900	Taxes Payable	1,450
Accounts Receivable	56,359	Wages Payable	120
Investments		Long Term Liabilities
Fixed Assets		Equity:
		Capital Stock	50,000
Intangible & Other Assets		Retained Earnings (Open Bal of 28252+ Net Income of 4127)	32,379
Total Assets	84,599	Total Liabilities & Equity	84,599