“ACC 211 Chapter 10 Assignment Review
Problem

Name
______________________________________________ Date _________________
There is one problem with multiple parts that deal with the preparation of financial statements that we covered either in
chapter 4 (multi-step income statement) or chapters 2 & 3 (statement of
retained earnings and classified balance sheet). Total assignment is worth 35
points.
P1.
Charlotte Companys adjusted
trial balance on December 31, 2013, follows.
Debit Credit
Cash $20,000
Accounts Receivable 35,000
Prepaid expenses 10,000
Supplies 8,000
Merchandise inventory . .
. . . . . . . . . 43,000
Equipment . . . . . . . 184,000

Patent 20,000
Accumulated Depreciation –
Equip 70,000
Accounts payable 20,000
Salaries payable 8,000
Taxes payable 4,000
Interest payable 1,000
Note Payable (long term) .
. . . . . . . . . . . . . 75,000
Common stock . . . . . . . . . . . . . . . . 100,000
Retained earnings 20,000
Dividends paid . . . . . . . . . . . . 8,000
Sales . . . . . . . . . .
. . . . . . . . . . . . . . . 300,000

Sales discounts . . . . .
. . . . . . . . . . . . 4,000
Sales returns and allowances . . . . . . . 10,000
Cost of goods sold . . . . . . . . . . . . . .
120,000
Sales salaries expense . .
. . . . . . . . . . 45,000
Rent expense Selling
space . . . . . . . 15,000
Store supplies expense . .
. . . . . . . . . . 3,000
Advertising expense . . .
. . . . . . . . . . . 25,000
Office salaries expense .
. . . . . . . . . . . 40,000
Rent expense Office space
. . . . . . . 6,000
Office supplies expense .
. . . . . . . . . . 2,000
Totals . . . . . . . . . .
. . . . . . . . . . . . . . $ 598,000 $
598,000

Required.
Part 1. Prepare a multiple-step income
statement that includes separate categories for selling expenses and for
general and administrative expenses. Check figure: Net income should be $30,000.
(15 points total).
CHARLOTTE COMPANY
Income Statement
For Year Ended Dec 31, 2013

Part 2. Prepare a statement of retained
earnings for the same year ended Dec 31, 2013. Retained earnings at the
beginning of the year was $20,000. Check figure: Ending retained earnings as of
Dec 31, 2013 should be $42,000. (5 points)

CHARLOTTE
COMPANY, inc
Statement
of Retained Earnings
For
Month Ended Dec 31, 2013

Part 3. Prepare a classified balance
sheet as of December 31, 2013 for the same company. Check figures: Total
current assets should be $116,000 and total assets should be $250,000. (15
points)
CHARLOTTE COMPANY
Balance Sheet
December 31, 2013
ACC 211 Chapter 10 Assignment Review
ProblemName
______________________________________________ Date _________________There is one problem with multiple parts
that deal with preparation of financial statements that we covered either in
chapter 4 (multi-step income statement) or chapters 2 & 3 (statement of
retained earnings and classified balance sheet). Total assignment is worth 35
points. P1. Charlotte Companys adjusted
trial balance on December 31, 2013, follows.Debit CreditCash $20,000Accounts Receivable 35,000Prepaid expenses 10,000Supplies 8,000Merchandise inventory . .
. . . . . . . . . 43,000 Equipment . . . . . . . 184,000
Patent 20,000Accumulated Depreciation –
Equip 70,000Accounts payable 20,000Salaries payable 8,000Taxes payable 4,000Interest payable 1,000Note Payable (long term) .
. . . . . . . . . . . . . 75,000 Common stock . . . . . . . . . . . . . . . . 100,000 Retained earnings 20,000Dividends paid . . . . . . . . . . . . 8,000 Sales . . . . . . . . . .
. . . . . . . . . . . . . . . 300,000
Sales discounts . . . . .
. . . . . . . . . . . . 4,000 Sales returns and allowances . . . . . . . 10,000 Cost of goods sold . . . . . . . . . . . . . .
120,000 Sales salaries expense . .
. . . . . . . . . . 45,000 Rent expense Selling
space . . . . . . . 15,000 Store supplies expense . .
. . . . . . . . . . 3,000 Advertising expense . . .
. . . . . . . . . . . 25,000 Office salaries expense .
. . . . . . . . . . . 40,000 Rent expense Office space
. . . . . . . 6,000 Office supplies expense .
. . . . . . . . . . 2,000 Totals . . . . . . . . . .
. . . . . . . . . . . . . . $ 598,000 $
598,000 Required. Part 1. Prepare a multiple-step income
statement that includes separate categories for selling expenses and for
general and administrative expenses. Check figure: Net income should be $30,000.
(15 points total).CHARLOTTE COMPANYIncome StatementFor Year Ended Dec 31, 2013Part 2. Prepare a statement of retained
earnings for the same year ended Dec 31, 2013. Retained earnings at the
beginning of the year was $20,000. Check figure: Ending retained earnings as of
Dec 31, 2013 should be $42,000. (5 points)CHARLOTTE
COMPANY, incStatement
of Retained EarningsFor
Month Ended Dec 31, 2013Part 3. Prepare a classified balance
sheet as of December 31, 2013 for the same company. Check figures: Total
current assets should be $116,000 and total assets should be $250,000. (15
points)CHARLOTTE COMPANYBalance SheetDecember 31, 2013”