Lanz Co.

Statement of Comprehensive Income

Sales 760,0
00
Less: Sales Discounts 10,000
For the period ended December 31,2020
Sales Returns 16,000
Less: Cost of Goods Sold
Merchandise Inventory, January 1 350,000
Add: Net Purchases
Purchases 725,000
Add:Freight In 15,000
Gross Purchases 740,000
Less:Purchase Discounts 11,000
Net Sales
Purchase Returns 12,000 23,000
Less:Merchandise Inventory, Ending 490,000 577,0
00
Gross Profit 157,0
00
Less:Operating Expenses
Administrative Expenses
Light and Water Expense 18,000
Salaries and Wages 32,000
Supplies Expense 15,000
Taxes and Licenses 10,000 75,000
Selling Expenses
Advertising Expense 15,000 15,000
Total Operating Expense 90,00
0
Income before Interest and Taxes 67,00
0
Net Income 67,00
0

Cost of Goods Availbale for Sale

Lanz Co.
Statement of Owner’s Equity
For the period ended December 31,2020

Lanz Capital, Beginning 288,000

Add:Net Income
Total
Less:Drawing 30,000
Lanz Capital, Ending 325,000
 Lanz Co.

Statement of Financial Position

December 31,2020

ASSETS
Current Assets
Petty Cash Fund 10,00
0
Cash in Bank 140,0
00
Accounts Receivable 80,000
Allowance for doubtful Accounts 12,000 68,00
0
Notes Receivable 160,0
00
Merchandising Inventory, ending 490,0
00
Prepaid Rent 48,00
0
Prepaid Insurance
Total Current Assets
Non-current Assets
Office Equipment 130,000
Less:Accumulated Depreciation – Office Equipment 124,000
Store Furnitures and Fixtures
Less:Accumulated Depreciation – Store Furnitures and Fixtures 20,000
330,000
Total Non-current Assets 454,000
Total Assets 1,395,000
LIABILITIES
Current Liabilities
Accounts Payable 290,000
Salaries Payable 280,000
Total Current Liabilities 570,0
00
Non-current Liabilities
Bank Loan Payable 500,000
Total Non-current Liabilities 500,00
Total Liabilities 1,070,00
0
OWNER’S EQUITY 0

SPUI Capital, Ending 325,00

0
Total Liabilities and Owner’s Equity 1,395,0
00
 Eve Rose Tacadao
12- Our Lady of Chartres
Fundamentals of Accountancy
Business and Management

Problems on Merchandising FS – Multiple Step –Lanz Co.