Business Finance
ACC 201 Great Basin College Neon Lumber Company Income Statement Excel Worksheet

ACC 201

Great Basin College

ACC

Question Description

Can you help me understand this Accounting question?

Using the Excel file provided below as a starting point, or by creating your own Excel file, complete the following problem, and submit your assignment as an attachment here. Be sure to save your work before you submit, and present your work in a reasonable format with major answers highlighted. Because you have plenty of time to do this assignment, and given that the textbook is available for your use, this assignment should really be close to perfect.

***************************************

Here is the problem:

The Neon Lumber Company uses the periodic inventory method, and it has a policy of adjusting and closing its books only at year end. The following adjusted trial balance for the company was prepared after posting the normal adjusting entries on December 31, 2020:

Account TitleDebitCredit
Cash66,240
Accounts Receivable140,500
Merchandise Inventory, January 1, 2020289,620
Supplies on Hand5,200
Prepaid Insurance4,800
Prepaid Rent56,000
Equipment92,000
Accumulated Depreciation16,460
Accounts Payable96,800
Capital Stock50,000
Retained Earnings, January 1, 2020

456,210

Dividends4,000
Sales910,120
Sales Discounts4,220
Sales Returns and Allowances6,530
Interest Revenue820
Purchases624,440
Purchase Discounts4,650
Purchase Returns and Allowances2,400
Transportation In9,420
Advertising Expense36,840
Sales Salaries Expense120,550
Administrative Salaries Expense60,300
Utilities Expense9,560
Delivery Expenses (Freight Out)2,610
Legal and Accounting Expense3,200
Interest Expense400
Miscellaneous Administrative Expense1,030
Totals1,537,4601,537,460

The ending inventory balance at Dec. 31, 2020 was $280,000.

Required:

A. Following the example on page 242 of the textbook, prepare the income statement for the year ended December 31, 2020. Do your best to distinguish between selling expenses and administrative expenses. Both interest revenue and interest expense, of course, are non-operating items.

B. Using the example on page 249 of the textbook, prepare the statement of retained earnings for the year ended December. 31, 2020.

C. Using the example on page 250 and other locations in the textbook, prepare the balance sheet as of December. 31, 2020.

D. Prepare the closing entries as of December 31, 2020.

*****************************************

Here is a very rough document that you might use to get you started on this assignment. Please feel free to modify it to the extent necessary to complete this assignment. In doing so, please change the name of the file to include your name before submitting it.

Unformatted Attachment Preview

Chapter 6 Homework #2 Name: Please add, delete, or move columns, rows, or numbers as necessary. Please make sure all numbers are formatted with appropriate commas. A Neon Lumber Company Income Statement For the Year Ending December 31, 2020 Operating Revenue Sales Sales Discounts Sales Returns and Allowances Net Sales Cost of goods sold: Merchandise Inventory, Jan. 1, 2020 Purchases Purchase Discounts Purchase Returns & Allownces Net Purchases Transportation In Net Cost of Purchases Goods Available for Sale Merchandise Inventory, Dec. 31, 2020 Cost of Goods Sold Gross Margin Operating Expenses: Selling Expenses: Sales Salaries Expense Advertising Expense Utilities Expense Delivery Expense Administrative Expenses: Administrative Salaries Expense Legal and Accounting Expense Misc Administrative Expense Total Operating Expenses Income from Operations Non-Operating Items: Interest Revenue 289,620 120,550 820 Interest Expense Net Income B Neon Lumber Company Statement of Retained Earnings For the Year Ending December 31, 2020 Retained earnings, Jan. 1, 2020 Net income for the year Dividends Retained ernings, Dec. 31, 2020 C Neon Lumber Company Balance Sheet As of December 31, 2020 Cash Accounts Receivable Merchandise Inventory Supplies of Hand Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Total Assets Liabilities: Accounts Payable Stockholders' equity: Capital Stock Retained Earnings Total Stockholders' equity Total Liabilities & Stockholders' Equity 66,240 D Closing Entries Accounts Sales Merchandise Inventory , Dec. 31 Interest Revenue Purchase Discounts Purchase Returns & Allowances Income Summary Income Summary Merchandise Inventory, Jan. 31 Sales Discounts Sales Returns and Allowances Purchases Transportation In Advertising Expense Sales Salaries Expense Administrative Salaries Expense Utilities Expense Delivery Expense Legal and Accounting Expense Interest Expense Misc Admin Expense Income Summary Retained Earnings Retained Earnings Dividends Debit Credit 910,120 ...
Purchase answer to see full attachment
Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Attached.

Chapter 6 Homework #2
Name:

A

Neon Lumber Company
Income Statement
For the Year Ending December 31, 2020
Operating Revenue
Sales
Sales Discounts
Sales Returns and Allowances
Net Sales
Cost of goods sold:
Merchandise Inventory, Jan. 1, 2020
Purchases
Purchase Discounts
Purchase Returns & Allownces
Net Purchases
Transportation In
Net Cost of Purchases
Goods Available for Sale
Merchandise Inventory, Dec. 31, 2020
Cost of Goods Sold
Gross Margin
Operating Expenses:
Sel...

Prof_Axel (2044)
Carnegie Mellon University

Anonymous
The tutor managed to follow the requirements for my assignment and helped me understand the concepts on it.

Anonymous
The tutor was knowledgeable, will be using the service again.

Anonymous
Awesome quality of the tutor. They were helpful and accommodating given my needs.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4