Question

A list of accounts for Maple Inc. at December 31, 2016, follows: Accounts Receivable Advertising Expense Buildings and Equipment, Net Capital Stock Cash Depreciation Expense Dividends Income Tax Expense Income Tax Payable Interest Receivable Inventory: January 1, 2016 December 31, 2016 $ 2,359 $ 4,510 $ 55,550 $ 50,000 $ 590 $ 2,300 $ 6,000 $ 3,200 $ 3,200 $ 100 Land Net purchases Retained Earnings, January 1, 2016 Salaries Expense Salaries Payable Net sales Transportation-In Utilities Expense $ 20,000 $ 39,400 $ 32,550 $ 25,600 $ 650 $ 83,584 $ 375 $ 3,600 $ $ 6,400 7,500 Required: 1. Determine cost of goods sold for 2016 2. Determine net income for 2016 3. Prepare a balance sheet dated December 31, 2016

Answer 1

Answer of Part 1:

Cost of Goods Sold = Beginning Inventory + Purchases + Transportation-in – Closing Inventory
Cost of Goods Sold = $6,400 + $39,400 + $375 - $7,500
Cost of Goods Sold = $38,675

83584 Answer of Part 2: Maple Inc. Income Statement For the Year Ended December 31, 2016 Revenue Net Sales 83584 Total Revenue Less Expenses Cost of Goods Sold 38675 Depreciation Expenses 2300 Advertising Expenses 4510 Salaries Expenses 25600 Utilities Expense 3600 Total Expenses Net Income Before Tax Less: Income Tax Net Income 74685 8899 3200 5699

10549 Answer of Part 3: Maple Inc. Balance Sheet For the Year Ended December 31, 2016 Assets Current Assets Accounts Receivable 2359 Cash 590 Closing Inventory 7500 Interest Receivable 100 Total Current Assets Non Current Assets Building and Equipment, Net Land Total Assets Liabilities and Stockholders Equity Current Liabilities Income Tax Payable 3200 Salaries Payable 650 Total Current Liabilities Stockholders Equity Capital Stock 50000 Retained Earnings 32249 Total Stockholders Equity Total Liabilities and Stockholders Equity 55550 20000 86099 3850 82249 86099

Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividend
Ending Retained Earnings = $32,550 + $5,699 - $6,000
Ending Retained Earnings = $32,249