Question

Exercise 1 MASON'S INCORPORATED (in 000s of dollars) Inventory, March 31, 2019 Gross income (profit) Long-term notes payable Store fixtures, net Selling expenses Accounts payable Income tax expense Retained earnings, April 1, 2018 Cash General and administrative expenses Accrued expenses payable Accounts receivable Dividends Notes payable Inventory, April 1, 2018 Common stock Sales Depreciation expense Income tax payable Store fixtures, cost $758 857 31 144 341 288 12 540 48 432 96 324 12 252 684 36 3,398 36 7 180 Assignment Different balance sheet and income statement accounts are listed above in random order. The balance sheet accounts are as at March 31, 2019, except where noted. The income statement amounts are for the year April 1, 2018, to March 31, 2019. 1. Determine whether each account is a balance sheet or an income statement item. 2. Prepare an income statement for Mason's Incorporated for the year ending March 31, 2019. 3. Prepare a statement of retained earnings for the year ended March 31, 2019. 4. Prepare a balance sheet as at March 31, 2019, for Mason's Incorporated.

Can you please show me the work? like how you find the plus: net purchases and all the calculations please?

Answer 1

1 Inventory, March 31 2019 Gross income (profit) Long-term notes payable Store fixtures, net Selling expense Accounts payable Income tax expense Retained Earnings April 1, 2018 Cash General and admintrative expenses Accrued expense payable Accounts receivable Dividends Notes payable Inventory April 1, 2018 Common stock Sales Depreciation expense Income tax payable Store fixtures, cost Balance Sheet Income Statement Balance Sheet Balance Sheet Income Statement Balance Sheet Income Statement Balance Sheet Balance Sheet Income Statement Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Income Statement Income Statement Balance Sheet Balance Sheet Working notes: Cost of goods sold Sales Less: Gross profit Cost of goods sold $3,398 $857 $2,541 2 (In '000s) MASON'S INCORPORATED Income Statement For The Year Ended March 31, 2019 Service Revenue $3,398 Less: Cost of goods sold $2,541 Gross profit $857 Less: Operating Expenses Selling expenses $341 General and Administrative expenses $432 Depreciation expense $36 Total Operating expenses $809 Income before tax $48 Income tax expense $12 Net Income $36 (In '000) 3 MASON'S INCORPORATED Statement of Retained Earnings For The Year Ended March 31, 2019 Opening balance, Retained Earnings Add: Net Income during the year $540 $36 $576 $12 $564 Less: Dividends Closing balance, Retained Earnings (In '000s) 4 MASON'S INCORPORATED Balance Sheet As on March 31, 2019 Assets Current Assets: Cash Accounts Receivable Inventory Total Current Assets $48 $324 $758 $1,130 $180 $36 $144 $1,274 Plant, Property and Equipment: Stores fixtures Less: Accumulated Depreciation Stores fixtures (net) Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Notes payable Accrued expenses payable Income tax payable Total current liabilities $288 $252 $96 $7 $6431 Long term liabilities: Long term notes payable Total liabilities $31 $674 $36 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $564 $600 $1,274