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Dickens Corp.’s fiscal year ends on December 31. It started fiscal year 20X6 with $4,800 retained earnings. Below is its financial information as of December 31, 20X6.Cash $3,810Depreciation expense$1,005Accumulated depreciation-property, plant, & equipment $2,010Accounts receivable $2,430Inventory $2,901Dividends $975Salaries and wages expense $2,100Income tax payable $404Short-term investment $3,600Accounts payable $2,502Property, plant, & equipment $7,260Salaries and wages payable $667Land $9,300Interest expense $1,200Mortgage payable $10,500Cost of goods sold $3,180Insurance expens $630Prepaid insurance $180Notes payable $183Sales Revenue $15,300Common stock $2,700Income tax expense $495Prepare the following financial statements for Dickens Corp. Ensure you include appropriate headings and statements are in good form.1) Income statement for the year ended December 31, 20X6.2) Retained earnings statement for the year ended December 31, 20X6.3) Classified balance sheet as of December 31, 20X6.

Respuesta :

Answer:

(1) Income Statement for the year ended December  31,20X6

                                                                                   $               $  

Sales Revenue                                                        15,300  

Cost of goods sold                                               -  3,180

Gross Profit                                                                 12,120  

Administrative Expenses ( WK 1)                               -  3,735  

Operating Income                                                          8,385  

Finance costs (Interest expenses)                       -  1,200  

Profit before tax                                                          7,185  

Income Tax expenses                                                -   495  

Profit after tax                                                         6,690  

   

(2)Retained Earnings Statement for the year ended December 31,20X6    

                                                                                         $                 $

Balance as at January 1,20X6                                 4,800    

Current year profit                                                 6,690    

Dividends                                                              -    975

Retained Earnings as at December 31, 20X6        10,515  

   

(3)Balance Sheet as at the year ended December 31 ,20X6

                                                                                  $             $  

Non-current Assets :    

Property, Plant & Equipment ( WK 2)                     5,250    

Land                                                                     9,300    14,550  

   

Current Assets      :    

Cash                                                                      3,810    

Account Receivables                                              2,430    

Inventory                                                              2,901    

Short-term investment                                              3,600    

Prepaid Insurance                                                       180            

                                                                            12,921        

Current Liability     :  

Income Tax Payable                                               404    

Salaries & wages payable                                       667    

Notes payable                                                        183    

Account payable                                                     2,502  

                                                               3,756

Net current Assets                                                     9,165  

   

TOTAL ASSETS LESS CURRENT LIABILITIES                   23,715

   

FINANCED BY :    

Equity & Non-current liabilities    

Equity :  

Equity -Common Stock                             2,700    

Retained Earnings                                   10,515                   13,215  

   

Non-current liabilities  

Mortgage Payable                                                 10,500  

   

TOTAL EQUITY & LIABILITIES                                 23,715  

Explanation:

Workings  $

1 ) Administrative Expenses

Depreciation expenses                     1,005

Salaries & wages expenses                     2,100

Insurance Expenses                             630

                                                           3,735

2) Property,Plant & Equipment

Cost                                                      7,260

Accumulated Depreciation                     2,010

Net Book Value (NBV)                             5,250

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