Question

File Edit View Insert Ford Dulu Ö7 100% - $ $ .00 123 Default (Ca. 11 - B IG Requirements: 1. Use the information in the adjusted trial balance below to prepare (a) the income statement (Stab) for the year ended December 31: (b) the statement of owner's egity (SOE tab) for the year ended December 31 (Note: Crowder capital at December 31 of the prior year was $255,0001; and (c) the balance sheet (Stab) as of December 31. 2. Compute the profit margin for the year (profit margin tab) (use total revenues as the denominator). The adjusted trial balance for Crowder Company as of December 31 follows: Credit Accounts receiveable Interest receivable Notes receivable due in 90 days) Office supplies Automobiles Accumulated depreciation automobiles Equipement Acumulated depreciation equipment Debit 35,000 50.000 16,000 150,000 16.000 170,000 45,000 125,000 65.000 Accounts payable 100,000 18,000 15,000 35,000 Salaries payable 255.000 Long-termes payable Crowder, capital Crowder, withdrawals Fees earned Interest earned 50,000 450,000 + Requirement - 15 - SOE - S - Pront Margin- Tower s ol caps lock 1ps lock

FIND SOE, BS AND PROFIT MARGIN

Answer 1

First in the trial balance we should classify all the items into

1. incomes and expenses which should be taken to Income statement

2. All assets and liabilities should be identified and moved to Balance sheet

3. Statement of equity primarily comprises of owners capital contribution, withdrawls,profit /loss transfered from statement of profit/ loss

The following will be income statement post identifying incomes and expenses from Trial balance

Expenses	Amount	Income	Amount
Depreciation- automobiles	37000	Fees earned	450000
Depreciation- equipment	24000	Interest earned	20000
Salaries	195000
Interest	35000
office supplies	28000
Advertising	60000
repairs - automobile	27000
Profit for the year (balancing figure)	64000
	470000		470000

Tthe following will be balance sheet post identifying assets and liabilities

Liabilities	Amount	Assets	Amount
Accounts payable	100000	Cash	35000
Interest payable	18000	Accounts receivable	50000
Salaries payable	15000	Interest Receivable	16000
Unearned Revenue	35000	Notes receivable	150000
Long term notes payable	120000	Automobiles , net of accumulated deprecaition	125000
Crowder capital , Refer below statement of owners equity table	269000	Equipment, net of accumulated deprecaition	100000
		Land	65000
		office supplies	16000
	557000		557000

The following will be the statement of owners equity

Particulars	Amount
Crowder capital at beginning of the year	255000
less: Crowders withdrawls	(50,000)
Profit for the year transferred from Profit/ loss statement	64000
Total	269000

The profit margin for the year will be (profit/ total revenue)*100=(64,000/470,000)*100=13.61%