Question

Current Attempt in Progress An alphabetical list of Wildhorse Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal balances. Accounts payable $15,600 Notes payable $42,000 Accumulated depreciation-equipment 14,000 Prepaid insurance 575 Accumulated depreciation-furniture 17,500 R. Hall, capital 65,750 Cash 36,860 R. Hall, drawings 70,000 Cost of goods sold 265,640 Rent expense 25,000 Depreciation expense 7,100 Salaries expense 50,800 Equipment 35,000 Salaries payable 2,250 Furniture 42,000 Sales 472,000 Insurance expense 3,575 Sales returns and allowances 14,000 Interest expense 3,380 Supplies 950 Interest payable 555 Supplies expense 6,325 Merchandise inventory 71,050 Unearned revenue 2,600 Additional information: 1. Of the notes payable, $6,100 becomes due on February 17, 2025. The balance is due in 2026. 2. On July 18, 2024, R. Hall invested $4,200 cash in the business.

          Current Attempt in Progress
An alphabetical list of Wildhorse Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal
balances.
Accounts payable
$15,600
Notes payable
$42,000
Accumulated depreciation-equipment 14,000
Prepaid insurance
575
Accumulated depreciation-furniture
17,500
R. Hall, capital
65,750
Cash
36,860
R. Hall, drawings
70,000
Cost of goods sold
265,640
Rent expense
25,000
Depreciation expense
7,100
Salaries expense
50,800
Equipment
35,000
Salaries payable
2,250
Furniture
42,000
Sales
472,000
Insurance expense
3,575
Sales returns and allowances
14,000
Interest expense
3,380
Supplies
950
Interest payable
555
Supplies expense
6,325
Merchandise inventory
71,050
Unearned revenue
2,600
Additional information:
1. Of the notes payable, $6,100 becomes due on February 17, 2025. The balance is due in 2026.
2. On July 18, 2024, R. Hall invested $4,200 cash in the business.

Show more…

Current Attempt in Progress
An alphabetical list of Wildhorse Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal
balances.
Accounts payable
15,600
Notes payable42,000
Accumulated depreciation-equipment 14,000
Prepaid insurance
575
Accumulated depreciation-furniture
17,500
R. Hall, capital
65,750
Cash
36,860
R. Hall, drawings
70,000
Cost of goods sold
265,640
Rent expense
25,000
Depreciation expense
7,100
Salaries expense
50,800
Equipment
35,000
Salaries payable
2,250
Furniture
42,000
Sales
472,000
Insurance expense
3,575
Sales returns and allowances
14,000
Interest expense
3,380
Supplies
950
Interest payable
555
Supplies expense
6,325
Merchandise inventory
71,050
Unearned revenue
2,600
Additional information:
1. Of the notes payable, 6,100 becomes due on February 17, 2025. The balance is due in 2026.
2. On July 18, 2024, R. Hall invested4,200 cash in the business.

Added by April L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

06/16/2023

Step 1

To calculate the total liabilities, we need to add the accounts payable, notes payable, salaries payable, interest payable, and unearned revenue. Total liabilities = Accounts payable + Notes payable + Salaries payable + Interest payable + Unearned revenue Total Show more…

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Current Attempt in Progress An alphabetical list of Wildhorse Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal balances. Accounts payable: $15,600 Notes payable: $42,000 Accumulated depreciation - equipment: $14,000 Prepaid insurance: $17,500 Accounts receivable: $575 Accumulated depreciation - furniture: $65,750 Cash: $36,860 R. Hall, drawings: $70,000 Cost of goods sold: $265,640 Rent expense: $25,000 Depreciation expense: $7,100 Salaries expense: $50,800 Equipment: $35,000 Furniture: $35,000 Salaries payable: $42,000 Sales: $3,575 Sales returns and allowances: $3,380 Supplies: $555 Supplies expense: $71,050 Unearned revenue: $2,250 Total: $472,000 Insurance expense: $14,000 Interest expense: $56 Interest payable: $6,325 Merchandise inventory: $2,600 Additional information: 1. Of the notes payable, $6,100 becomes due on February 17, 2025. The balance is due in 2026. 2. On July 18, 2024, R. Hall invested $4,200 cash in the business.

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Transcript

00:07 Hello students, in this question, we have to prepare the income statement.

00:11 So it is prepared as particulars amount sales revenue given to us is 730 ,000.

00:22 Less cost of goods sold.

00:29 It is 43000.

00:32 It will give us the gross revenue, which is 292 ,000.

00:40 Now from this, we will deduct all the expenses, which is made by the company.

00:48 So the expenses are salaries, rent, interest, advertising, depreciation.

01:12 Salary is given to us is 109 ,500.

01:17 Rent 36 ,000.

01:19 Interest 3600.

01:22 Advertising 4600.

01:24 Depreciation 58 ,000.

01:27 So upon totaling of all the expenses, it will give us 211 ,700.

01:34 So we will deduct this from the gross revenue.

01:38 It will give us net income, which will be 80 ,300.

01:51 Now we will be preparing balance sheet.

01:53 So it will be so it is current assets and current assets.

02:07 We have been given account receivable, which is 320 ,000.

02:21 Inventory given to us is 48 ,000.

02:28 T -paid rent 12 ,000.

02:36 Cash given to us is 33 ,400.

02:41 So total of current asset would be sum of all these figures, which is 413 ,400...

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