Professional Documents
Culture Documents
Nature of Businesses
Service Business
Fees earned Operating expenses Net income Rs.XXX XXX Rs.XXX
Nature of Businesses
Merchandising Business
Sales Cost of Merchandise Sold Gross Profit Operating Expenses Net Income Rs. XXX XXX Rs. XXX XXX Rs.XXX
Revenues: Net sales Rent revenue Total revenues Expenses: Cost of merchandise sold Selling expenses Administrative expenses Interest expense Total expenses
Net income
Revenue from sales: Sales Less:Sales returns and allowances Sales discounts Net sales Cost of goods sold Gross profit
Continued
Operating expenses: Selling expenses: Sales salaries expense Advertising expense Depr. Expensestore equipment Miscellaneous selling expense Total selling expenses Administrative expenses: Office salaries expense Rent expense Depr. expenseoffice equipment Insurance expense Office supplies expense Misc. administrative expense Total admin. expenses Total operating expenses Income from operations
Continued
Other income and expenses: Rent revenue Interest expense Net income
Concluded
Retained earnings Net income for year Less dividends Increase in owners equity Retained earnings
Balance Sheet
Assets
Current assets: Cash Accounts receivable Merchandise inventory Office supplies Prepaid insurance Total current assets 52,950 91,080 62,150 480 2,650 209,310
Continued
Property, plant, and equipment: Land Store equipment Less accumulated depreciation Office equipment Less accumulated depreciation Total property, plant, and equipment Total assets
Continued
Liabilities Current liabilities: Accounts payable Note payable (current portion) Salaries payable Unearned rent Total current liabilities Long-term liabilities: Note payable (due 2017) Total liabilities Stockholders Equity Capital stock Retained earnings Total liab. and stockholders equity 22,420 5,000 1,140 1,800 30,360 20,000 50,360 25,000 186,200
211,200 261,560