PROBLEM 15-14

Dec. 31 Jan. 1
Assets 6,880,000.00 6,000,000.00
Liabilities 1,600,000.00 2,120,000.00
Equity 5,280,000.00 3,880,000.00

Equity, end 5,280,000.00

Withdrawals 400,000.00
Investments (600,000.00)
Equity, beg (3,880,000.00)
Net Income 1,200,000.00

Cash Sales 800,000.00 Equipment, beg

Collections 3,960,000.00 Purchase
Discounts 100,000.00 Sold
Returns 320,000.00 Equipment, end
Writeoff 120,000.00 Depreciation
Increase in TR 1,200,000.00
GS 6,500,000.00 Proceeds from sale
Discounts (100,000.00) CA
Returns (320,000.00) Gain on sale
Net Sales 6,080,000.00

Cash Purchases 600,000.00 Accrued Exp, beg

Payments 2,800,000.00 Interest Exp
Allowance 80,000.00 Accrued Exp, end
Decrease in TR (400,000.00) Total Interest
GS 3,080,000.00
Allowances (80,000.00) Unearned Income, beg
Net purchases 3,000,000.00 Rent Income
Inventory, beg 1,600,000.00 Unearned Income, end
Inventory, end (960,000.00) Total Rent Income
COGS 3,640,000.00

LANCER COMPANY
Income Statement
Year ended Dec 31, 2020

Net Sales $ 6,080,000.00

Cost of Goods Sold 3,640,000.00
Gross Profit $ 2,440,000.00
Other Income
 Gain on Sale $ 20,000.00
Rent Income 160,000.00 180,000.00
Total Income $ 2,620,000.00
Expenses 800,000.00
Depreciation 380,000.00
Doubtful Accounts 120,000.00
Interest 120,000.00 1,420,000.00
Net Income $ 1,200,000.00

PROBLEM 15-15
Dec. 31 Jan . 1
Assets 4,810,000.00 4,390,000.00
Liabilities 1,410,000.00 1,890,000.00
Equity 3,400,000.00 2,500,000.00

Increase in Equity 900,000.00 Porceeds

dividends 400,000.00 Face Value, note
Increase in Share Capital (800,000.00) Loss on Discounting
Net Income 500,000.00

Collections 2,950,000.00 Equipment beg

Discounted Note 200,000.00 Purchase
Returns 320,000.00 Equipment end
Increase in Trade receivabl 220,000.00 Depreciation
Sales 3,690,000.00
Expense
Payments 2,100,000.00 Prepaid Exp, beg
Decrease in Trade Payables (320,000.00) Accrued Exp, end
Purchases 1,780,000.00 Prepaid Exp,end
Inventory-beg 1,600,000.00 Accrued Exp, beg
Inventiry-end (1,500,000.00) Total expense
COGS 1,880,000.00
Interest
Bank loan(not included in TP) 300,000 x 12%(10/12)

Proceeds from sale 250,000.00

Investment, end 100,000.00
Investent, beg (400,000.00)
Loss on sale (50,000.00)

Corolla Company
 Income Statement
Year Ended Dec 31, 2020

Sales $ 3,370,000.00
COGS (1,880,000.00)
Gross Profit $ 1,490,000.00

Expenses $ 820,000.00
Depreciation 160,000.00
Interest 30,000.00
Loss on Sale 50,000.00
Loss on Discounting 10,000.00 1,070,000.00
Net Income $ 420,000.00

PROBLEM 15-16
Jan. 1 Accrued Salaries, end
Assets 1,590,000.00 Salaries Expense
Liabilities 460,000.00 Accrued Salaries, beg
Equity 1,130,000.00 Total Salaries

Cash 200,000.00 Supplies, beg

Deposits 3,930,000.00 Supplies Expense
Disbursements (3,360,000.00) Supplies, end
Service Charge (10,000.00) Total Supplies
Cash 760,000.00

Receipts 3,930,000.00 ADA, end

Writeoff 30,000.00 Write off
Increase in Receivables 30,000.00 ADA, beg
Sales 3,990,000.00 Doubtful Accounts

Payments 2,280,000.00 AP, beg

Returns (80,000.00) Purchase on Account
Decrease in Inventory 50,000.00 Returns
COGS 2,250,000.00 Payments
AP, end
Depreciation:
350,000 x 10% 35,000.00

Camry Company
Income Statement
 Year ended December 31, 2020

Sales $ 3,990,000.00
Cost of Goods Sold (2,250,000.00)
Gross Profit $ 1,740,000.00

Salaries $ 405,000.00
Supplies 95,000.00
Tax 45,000.00
Depreciation 35,000.00
Doubtful Accounts 60,000.00
Bank Charge 10,000.00
Other Expense 245,000.00
Miscellaneos 35,000.00 930,000.00
Net Income $ 810,000.00

PROBLEM 15-18

Ultimate Company
Income Statement
Year Ended Dec. 31, 2020
Sales $ 3,150,000.00
Cost of Goods Sold (1,555,000.00)
Gross Profit 1,595,000.00
Gain on Sale 25,000.00
Total Income 1,620,000.00

Expenses
Insurance $ 90,000.00
Salaries 400,000.00
Depreciation 280,000.00
Doubtful Accounts 10,000.00
Other Expenses 135,000.00 915,000.00
Net Income 705,000.00

Ultimate Company
Statement of Financial Position
Dec. 31, 2020

ASSETS
Current Assets
Cash $ 905,000.00
Account Receivable, net 190,000.00
Inventory 245,000.00
Prepaid Insurance 25,000.00
Total Current Assets $ 1,365,000.00

Noncurrent Assets
Property, plant, & equiptment 2,260,000.00
Total Assets 3,625,000.00

Liabilities and Shareholders' Equity

Current Liab.
Accounts Payable $ 100,000.00
Accrued Salaries 30,000.00
Dividends Payable 125,000.00
Advances to Customers 50,000.00
Total Liabilities $ 305,000.00

Equity
Share Capital 2,500,000.00
RE 820,000.00 3,320,000.00
Total Liab. & OE $ 3,625,000.00
 1,200,000.00
400,000.00
(100,000.00)
(1,120,000.00)
380,000.00

120,000.00
(100,000.00)
20,000.00

40,000.00
160,000.00
(80,000.00)
120,000.00

120,000.00
80,000.00
(40,000.00)
160,000.00
 190,000.00
(200,000.00)
(10,000.00)

1,000,000.00
280,000.00
(1,120,000.00)
160,000.00

790,000.00
120,000.00
50,000.00
(100,000.00)
(40,000.00)
820,000.00

30,000.00
 15,000.00
400,000.00
(10,000.00)
405,000.00

40,000.00
75,000.00
(20,000.00)
95,000.00

50,000.00
30,000.00
(20,000.00)
60,000.00

250,000.00
2,250,000.00
(70,000.00)
(2,200,000.00)
230,000.00