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Read the following scenario and perform the exercises below
Read the following scenario and perform the exercises below.
The company Computers Caribe, after making the adjustments in March, has the following balance sheets in the books, which are in the following adjusted check balance (trial balance):
1. Prepares the multi-step income statement.
2. Prepare the capital status (owner's capital statement).
3. Prepares the status status (balance sheet).
Caribbean computers
Adjusted Trial Balance
Period ending March 31, 2020
Account title Ref. Debit Credit
Cash $17,560
Account Receivable 18,065
Supplies 60,500
Building 180,000
Acc. Depreciation-Building $22,000
Equipment 45,600
Acc. Depreciation-Equipment 5,800
Account Payable 29,200
Salary Payable 3,500
Interest Payable 1,000
Unearned Sales Revenue 7,000
Note Payable, Long Term 85,000
J. Ayala, Capital 180,000
J. Ayala, Withdrawals 5,000
Sales Revenue 150,000
Sales Discounts 6,200
Sales Return and Allowances 7,600
Cost of Goods Sold 102,000
Selling Expense 18,400
General Expense 20,075
Interest Expense 2,500
Total 483,500 483,500
Expert Solution
| Computers Caribe Company | ||
| Multistep Income Statement | ||
| For the Year Ending March 31, 2020 | ||
| Revenue | ||
| Sales Revenue | 150000 | |
| Less: Sales discounts | 6200 | |
| Less: Sales Return and Allowances | 7600 | |
| Revenue | 136200 | |
| Cost of goods sold | 102000 | |
| Gross Profit | 34200 | |
| Operating Expense | ||
| General Expense | 20075 | |
| Selling Expense | 18400 | |
| Operating Expense | 38475 | |
| Operating Income | -4275 | |
| Interest Expense | 2500 | |
| Net Loss | -6775 |
| Computers Caribe Company | |
| Statement of Owner's Equity | |
| Owner's Equity at Beginning | 180000 |
| Less: Withdrawals | -5000 |
| Less: Net Loss | -6775 |
| Owner's Equity at End | 168225 |
| Computers Caribe Company | |
| Balance Sheet | |
| As at March 31, 2020 | |
| ASSETS | |
| Current Assets: | |
| Cash | 17560 |
| Account Receivable | 18065 |
| Supplies | 60500 |
| Total Current Assets | 96125 |
| Non-Current Asset: | |
| Equipment | 39800 |
| Building, Net | 158000 |
| Total Assets | 293925 |
| LIABILITIES AND OWNER'S EQUITY: | |
| Liabilities: | |
| Current Liabilities: | |
| Account Payable | 29200 |
| Salary Payable | 3500 |
| Interest Payable | 1000 |
| Unearned Sales Revenue | 7000 |
| Total Current Liabilities | 40700 |
| Note payable | 85000 |
| Owner's Equity | 168225 |
| Total Liabilities and Owner's Equity | 293925 |
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