Question

Using Be Prepared, Inc.'s adjusted trial balance and prior period's balance sheet, prepare the following Financial Reports: Credits Debits 423,615.00 $ 25,000.00 in your 540.00 3 • Multi-Step Income Statement for the month of January 2021 (see page textbook for guidance). • Statement of Retained Earnings for the month of January 2021 (see page in your textbook for guidance). Note: There are no prior period adjustments and all dividends declared and paid are cash dividends in the amount of $25,000. 100.00 15,000.00 7,200.00 8,000.00 500.00 1,600.00 375,000.00 500,000.00 72,000.00 70,000.00 17,500.00 95,000.00 15,800.00 65,000.00 30,000.00 12,500.00 5,500.00 325,000.00 375,000.00 10,500.00 Be Prepared Adjusted Trial Balance January 31, 2021 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Acc 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accu Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipo 1451 Store Equipment 1452 Accu Depr: Store EQUIRI 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payabe 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Preler 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General - 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - Genera 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat-Genera 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 interest Expense $ 210,000.00 120,000.00 61,250.00 295,000.00 90,000.00 850.00 90,000.00 275,575.00 750.00 5,250.00 50.00 125,500.00 300.00 2,100.00 9,000.00 2,500.00 2,400.00 1,100.00 25,000.00 7,000.00 800.00 800.00 20,000.00 5,600.00 1,200.00 1,500.00 750.00 2,000.00 6,500.00 1,906,565.00 S 1,906,565.00

Answer 1

Be Prepared, Inc.’s
Income Statement
For the Month Ended January 2021
Revenue
Sales	$275,575
Less: Sales Discount	$750
Sales Return and Allowances	$5,250
Net sales		$ 269,575.00
Cost of goods sold		$ 125,500.00
Gross Profit		$ 144,075.00
Selling Expesnes:
Supplies Expense	$   2,400.00
Depreciation Exp: Store Eq	$      800.00
Sales Salaries Expense	$ 20,000.00
Sales Payroll Tax Expense	$   5,600.00
Utilities Expense	$   1,200.00
Repairs Expense	$      750.00
Bad Debts Expense	$   2,000.00	$   32,750.00
General and Administrative:
Insurance Expense	$      300.00
Repairs Expense	$   2,100.00
Depreciation Expense: Building	$   9,000.00
Depreciation Exp: Office Eq.	$   2,500.00
Utilities Expense	$   1,100.00
Office Salaries Expense	$ 25,000.00
Office Payroll Tax Expense	$   7,000.00
Amortization Expense: Pat	$      800.00
Delivery Expense	$   1,500.00	$   49,300.00
Others Income & Expense
Interest Revenue	$        50.00
Interest Expense	$ (6,500.00)	$   (6,450.00)
Income before tax		$   55,575.00
Income tax expenses		$                -
Net Income		$   55,575.00
Be Prepared, Inc.’s
Statement of Retained Earnings
For the Month Ended January 2021
Retained earnings (beginning of the year)	$850
Add/Less: Net income/loss	$55,575
	$56,425
Less: Dividends	$25,000
Retained earnings (end of the year)	$31,425