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    FM 1 Assignment 1

    Uploaded by

    Jelly Ann Andres
    The document provides information to prepare financial statements for two companies, FM Company and PETMALU Manufacturing Company. For FM Company, sales were $15 million with various expenses listed. The task is to prepare an income statement using the function of expense method. For PETMALU Manufacturing, various asset, liability and equity account balances are provided as of December 31, 2015. The task is to prepare a statement of financial position as of that date.

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    FM 1 Assignment 1

    Uploaded by

    Jelly Ann Andres
    194 views3 pages
    The document provides information to prepare financial statements for two companies, FM Company and PETMALU Manufacturing Company. For FM Company, sales were $15 million with various expenses listed. The task is to prepare an income statement using the function of expense method. For PETMALU Manufacturing, various asset, liability and equity account balances are provided as of December 31, 2015. The task is to prepare a statement of financial position as of that date.

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    FM 1 ASSIGNMENT 1

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    The document provides information to prepare financial statements for two companies, FM Company and PETMALU Manufacturing Company. For FM Company, sales were $15 million with various expenses listed. The task is to prepare an income statement using the function of expense method. For PETMALU Manufacturing, various asset, liability and equity account balances are provided as of December 31, 2015. The task is to prepare a statement of financial position as of that date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    194 views3 pages

    FM 1 Assignment 1

    Uploaded by

    Jelly Ann Andres
    The document provides information to prepare financial statements for two companies, FM Company and PETMALU Manufacturing Company. For FM Company, sales were $15 million with various expenses listed. The task is to prepare an income statement using the function of expense method. For PETMALU Manufacturing, various asset, liability and equity account balances are provided as of December 31, 2015. The task is to prepare a statement of financial position as of that date.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    I.

    CLASSIFICATION

    Financial Statement Account Identification. Mark each of the accounts listed in the following table
    as follows:
    a. In column (1), indicate in which statement-income statement (IS) or balance sheet (BS)- the account
    belongs.
    b. In column (2), indicate whether the account is a current asset (CA), current liability (CL), expense (E),
    fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders' equity (SE).

    (1) (2)
    Account Name Statement Type of Account

    1 Accounts payable    

    2 Accounts receivable    

    3 Accruals    

    4 Accumulated depreciation    

    5 Administrative expense    

    6 Building    

    7 Cash    

    8 Common stock (at par)    

    9 Cost of goods sold    

    10 Depreciation    

    11 Equipment    

    12 General expense    

    13 Interest expense    

    14 Inventories    

    15 Land    

    16 Long-term debts    

    17 Machinery    

    18 Marketable securities    

    19 Notes payable    

    20 Operating expense    
    Paid-in capital in excess of
    21 par    
    22 Preferred stock    

    23 Preferred stock dividends    

    24 Retained earnings    

    25 Sales revenue    

    26 Selling expense    

    27 Taxes    

    28 Vehicles    

    29 Mortgage Payable    

    30 Concession Revenue    

    Prepare the following financial statements.

    1. FM Company provided the following information for the year 2017:


    Sales 15,000,000
    Merchandise Inventory, January 1 2,000,000
    Merchandise Inventory, December 31 2,000,000
    Purchases 7,000,000
    Freight (40% applicable to sales) 200,000
    Office Salaries 600,000
    Sales Salaries 700,000
    Office Supplies 150,000
    Store Supplies 100,000
    Depreciation Expenses:
    Building 500,000
    Office equipment 300,000
    Store equipment 180,000
    Sales returns and allowances 150,000
    Sales discounts 80,000
    Purchase discounts 100,000
    Purchase returns and allowances 160,000
    Interest income 60,000
    Loss from lawsuit 10,500
    Interest expense 20,000
    Salesmen commission 100,000
    The income tax rate is 30%.

    Prepare the statement of comprehensive income for the year using function of expense
    method.

    2. PETMALU Manufacturing Company provided the following accounts on December 31, 2015:
    Accounts payable 198,960
    Accounts Receivable 550,000
    Accrued payroll, taxes & interest 227,190
    Accum. Depreciation - Bldg. 123,600
    Accum. Depreciation - Machinery & Equipt. 1,500,000
    Allowance for bad debts 17,800
    Buildings 609,220
    Cash 464,000
    Prepare the statement
    Current portion of financial
    of Long-term debt position as of 39,200
    December 31, 2016.
    Income tax payable 19,950
    Finished goods 346,000
    Land 129,800
    Machinery & Equipment 2,505,800
    Manufacturing supplies 19,500
    Marketable securities 164,000
    Mortgage payable 535,500
    Premium on common stock 51,600
    Prepaid expenses 44,000
    Raw materials 80,500
    Retained earnings 1,599,380
    Stockholders' Equity 800,000
    Work in Process 200,360

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