Financial Data of Bob’s Bacon House Inc. as of January 1, 20XX Accounts

Payable

200,500

Account Receivable

165,700

Accumulated Depreciation’s

350,000

Additional Paid-In Capital

40,000

Allowance for Doubtful Accounts

2,650

Building and Equipment

1,120,000

Cash

 45,300

Common Stock

544,850

Copyrights

112,000

Customer Deposits (expected to be paid in 20XX)

375

Goodwill

225,000

Income Taxes Payable

42,340

Inventories @ $25/unit

315,250

Long-term Investments in Warren Co. 

95,630

Deposits With Vendors

47,200

Land

125,000

Mortgage Payable ($2,780 per month)

667,200

2% Notes Payable to Banks (due 20XX)

26,000

Notes Receivable (due 20XX)

16,000

Patents

219,335

Retained Earnings

127,500

Trademarks

115,000

Twenty-year, 3% Bonds, Due 1/1/20XX

600,000

Financial Data of Bob’s Bacon House Inc. for the Year 20XX

1

Finished Goods inventory purchased from suppliers on account. 

2/10/20XX 10,000 units @ $26 each

6/12/20XX 15,000 units @ $28 each 

10/23/20XX 12,000 units @ $29 each

11/25/20XX 8,000 units @ $30 each

Bob’s Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account.

2 

Payments made to suppliers on account during 20XX are $1,124,450.

3 

Sales made to customers on account are 49,356 units @ $36 each.

4

Cash collected from customers during 20XX is $1,750,700.

5 

Total interest paid on notes payable and bonds payable amounted to $17,415.

6 

Rental income on property leased out is $25,650.

7 

Bob’s Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800.

8 

Bob’s Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX.

9 

Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. 

10

Income tax expense paid is $90,500. Bob’s Bacon House income tax rate for 20XX is 30%.

I NEED TO PREPARE THE INCOME STATEMENT

 

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