Description 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 TitleDebitCreditCash66,240Accounts Receivable140,500Merchandise Inventory, January 1, 2020289,620Supplies on Hand5,200Prepaid Insurance4,800Prepaid Rent56,000Equipment92,000Accumulated Depreciation16,460Accounts Payable96,800Capital Stock50,000Retained Earnings, January 1, 2020456,210Dividends4,000Sales910,120Sales Discounts4,220Sales Returns and Allowances6,530Interest Revenue820Purchases624,440Purchase Discounts4,650Purchase Returns and Allowances2,400Transportation In9,420Advertising Expense36,840Sales Salaries Expense120,550Administrative Salaries Expense60,300Utilities Expense9,560Delivery Expenses (Freight Out)2,610Legal and Accounting Expense3,200Interest Expense400Miscellaneous Administrative Expense1,030 Totals1,537,4601,537,460The 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. 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } 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 Tags: retained earnings Operating Revenue Income Statement periodic inventory method adjusted trial balance User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

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 TitleDebitCreditCash66,240Accounts Receivable140,500Merchandise Inventory, January 1, 2020289,620Supplies on Hand5,200Prepaid Insurance4,800Prepaid Rent56,000Equipment92,000Accumulated Depreciation16,460Accounts Payable96,800Capital Stock50,000Retained Earnings, January 1, 2020456,210Dividends4,000Sales910,120Sales Discounts4,220Sales Returns and Allowances6,530Interest Revenue820Purchases624,440Purchase Discounts4,650Purchase Returns and Allowances2,400Transportation In9,420Advertising Expense36,840Sales Salaries Expense120,550Administrative Salaries Expense60,300Utilities Expense9,560Delivery Expenses (Freight Out)2,610Legal and Accounting Expense3,200Interest Expense400Miscellaneous Administrative Expense1,030 Totals1,537,4601,537,460The 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.

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

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

Tags:
retained earnings

Operating Revenue

Income Statement

periodic inventory method

adjusted trial balance

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.