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    Eve Rose Tacadao II
    SPUI Co. had net sales of $760,000 for the year ending December 31, 2020. Their cost of goods sold was $561,000, resulting in a gross profit of $199,000. Operating expenses totaled $192,300, giving them an income before interest of $6,700. With interest income of $1,000, their net income was $7,700. Their assets included $450,000 in inventory and $112,000 in cash, against liabilities of $243,000 in payables. Their owner's equity was $730,200 at year-end.

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    Eve Rose Tacadao II
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    SPUI Co. had net sales of $760,000 for the year ending December 31, 2020. Their cost of goods sold was $561,000, resulting in a gross profit of $199,000. Operating expenses totaled $192,300, giving them an income before interest of $6,700. With interest income of $1,000, their net income was $7,700. Their assets included $450,000 in inventory and $112,000 in cash, against liabilities of $243,000 in payables. Their owner's equity was $730,200 at year-end.

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    SPUI Co. had net sales of $760,000 for the year ending December 31, 2020. Their cost of goods sold was $561,000, resulting in a gross profit of $199,000. Operating expenses totaled $192,300, giving them an income before interest of $6,700. With interest income of $1,000, their net income was $7,700. Their assets included $450,000 in inventory and $112,000 in cash, against liabilities of $243,000 in payables. Their owner's equity was $730,200 at year-end.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    28 views295 pages

    Line Item

    Uploaded by

    Eve Rose Tacadao II
    SPUI Co. had net sales of $760,000 for the year ending December 31, 2020. Their cost of goods sold was $561,000, resulting in a gross profit of $199,000. Operating expenses totaled $192,300, giving them an income before interest of $6,700. With interest income of $1,000, their net income was $7,700. Their assets included $450,000 in inventory and $112,000 in cash, against liabilities of $243,000 in payables. Their owner's equity was $730,200 at year-end.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 295

    TACADAO, EVE ROSE 12- ABM- A

    Problems on Merchandising FS-Line Item-SPUI CO.

    SPUI CO.
    Statement of Comprehensive Income
    For the year ended Dec. 31, 2020
    Net Sales (Sched 1) 760,000
    Less: Cost of Goods Sold (Sched 2) 561,000
    Gross Profit 199,000
    Less: Operating Expenses
    Administrative Expenses (Sched 3) 126,300
    Selling Expenses (Sched 4) 66,000 192,300
    Income before Interest 6,700
    Add: Interest Income 1,000
    Net income 7,700
    Schedule 1- Net Sales
    Gross Sales 790,000
    Less: Sales discounts 10,000
    Sales returns & allowances 20,000 30,000
    Net Sales 760,000

    Schedule 2- Cost of Goods Sold


    Merchandise Inventory, beginning 200,000
    Add: Net Purchases
    Purchases 828,000
    Add: Freight-in 15,000
    Gross Purchases 843,000
    Less: Purchase discounts 12,000
    Purchase returns & allowances 20,000 32,000 811,000
    Cost of Goods Available for Sale 1,011,000
    Less: Merchandising Inventory, ending -450,000
    Cost of Goods Sold 561,000

    Schedule 3- Administrative Expenses


    Salaries and wages 47,500
    Rent expenses 36,000
    Taxes and licenses 8,000
    Utilities Expense 10,500
    Store supplies expense 6,500
    Depreciation expense 15,000
    Bad debt expense 2,800
    Total Administrative Expense 126,300
    Schedule 4- Selling Expenses
    Freight-out 10,000
    Advertising Expense 56,000
    Total Selling Expense 66,000

    SPUI CO.
    Statement of Owner's Equity
    For the year ended Dec. 31, 2020
    SPUI capital, beginning 747,500
    Add: Net Income 7,000
    Subtotal 755,200
    Less: Drawings 25,000
    SPUI capital, ending 730,200

    SPUI CO.
    Statement of Financial Position
    As of Dec. 31, 2020
    ASSETS
    Current Assets
    Cash and other cash equivalents (Sched 5) 112,000
    Trade and other receivables (Sched 6) 269,200
    Merchandise Inventory 450,000
    Prepaid Expenses (Sched 7) 13,500
    Total Current Assets 845,700
    Non-Current Assets
    Property, Plant & Equipment (Sched 8) 127,500
    Total Assets 973,200
    LIABILITIES
    Current Liabilities
    Trade and other payable (Sched 9) 243,000
    OWNER'S EQUITY
    SPUI capital, ending 730,200
    Total Liabilities & Owner's Equity 973,200

    Schedule 5- Cash and cash equivalents


    Cash 112,000
    Total cash and cash equivalents 112,000

    Schedule 6- Trade and other receivables


    Accounts receivable 232,000
    Allowance for doubtful accounts -22,800
    Notes receivable 60,000
    Total trade and other receivables 269,200

    Schedule 7- Prepaid Expenses


    Prepaid Rent 12,000
    Store Supplies 1,500
    Total Prepaid Expenses 13,500

    Schedule 8- Property, Plant & Equipment Cost Accumulated Depeciation


    Store Equipment 150,000 22,500
    Total Property, Plant & Equipment 150,000 22,500

    Schedule 9- Trade and other payable


    Account payable 240,500
    Salaries Payable 2,500
    Total Trade and Other Payable 243,000
    ated Depeciation Book Value
    22,500 127,500
    22,500 127,500

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