Lanz Co.

TACADAO, EVE ROSE 12-ABM-A
Problems on merchandising FS-Multiple step & Line Item- LANZ CO.
LANZ CO. MULTIPLE STEP

Lanz Co.
Statement of Comprehensive Income
For the year ended Dec. 31, 2020
Sales
Less: Sales returns and allowances
Sales discounts
Net Sales
Less: Cost of Goods Solds
Merchandise inventory, beginning
Add: Net Purchases
Purchases 725,000
Add: Freight-in 15,000
Gross Purchases 740,000
Less: Purchase returns and allowances 11,000
Purchase Discounts 12,000 23,000
Cost of Goods available for sale
Less: Merchandise Inventory, ending
Gross Profit
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
Selling Expenses
Advertising expense 15,000
Total Operating expense
Income before interest and taxes
Net Income
Lanz Co.
Statement of Owner's Equity
For the year ended December 31, 2020
Lanz capital, beginning
Add: Net income
Total
Less: Drawing
Lanz capital, ending
Lanz Co.
Statement of Financial Position
As of December 31, 2020
ASSETS
Current Assets
Petty cash fund
Cash in bank
Accounts receivable
Allowance for doubtful accounts
Notes Receivable
Merchandise Inventory, ending
Prepaid rent
Prepaid insurance
Total current assets
Non-current Assets
Office equipments
Less: Accumulated Depreciation-Office Equipment
Store Furniture and Fixture
Less: Accumulated Depreciation-Store furniture and fixtures
Total Non-current assets
Total Assets
LIABILITIES
Current Liabilities
Accounts payable
Notes Payable
Bank loan payable
Total current Liabilities
OWNER'S EQUITY
Total Liabilities & Owner's Equity
LANZ CO., LINE ITEM

Lanz Co.
Statement of Comprehensive Income
Net Sales (Sched 1)
Less: Cost of Goods Sold (Sched 2)
Gross Profit
Less: Operating Expenses
Administrative Expenses (Sched 3) 75,000
Selling Expenses (Sched 4) 15,000
Income before Interest
Net Income
Schedule 1- Net Sales

Gross Sales
Less: Sales discounts 10,000
Sales returns 16,000
Net Sales
Schedule 2- Cost of Goods Sold

Merchandise inventory, January 1, 2020
Add: Net Purchases
Puchases 725,000
Add: Freight-in 15,000
Gross Purchases 740,000
Less: Purchase discounts 11,000
Purchase returns and allowances 12,000 23,000
Cost of Goods Available for Sale
Less: Merchandising inventory, ending
Cost of Goods Sold
Schedule 3- Administrative Expenses

Light and Water expense
Salaries and wages
Supplies expense
Taxes and licenses
Total administrative expenses
Schedule 4- Selling expenses

Advertising Expense
Total Selling expense
Lanz Co.
Statement of Owner's Equity
Lanz capital, beginning
Add: Net Income
Subtotal
Less: Lanz,Drawing
Lanz Co.
Statement of Financial Position
As of Dec. 31, 2020
ASSETS
Current Assets
Cash and other cash equivalents (Schedule 5)
Trade and other receivables (Schedule 6)
Merchandise Inventory
Prepaid Expenses (Schedule 7)
Total current assets
Non-current Assets
Property, Plant & Equipment (Schedule 8)
Total Assets
LIABILITIES
Current Liabilities
Trade and other payable (Schedule 9)
OWNER'S EQUITY
Lanz, capital Ending
Total Liabilities & Owner's Equity
Schedule 5- Cash and Cash equivalents

Cash In bank
Petty cash fund
Total cash and cash equivalents
Schedule 6- Trade and other receivables

Accounts Receivable
Allowance for doubtful accounts
Notes Receivable
Total Trade and other Receivables
Schedule 7- Prepaid Expenses

Prepaid Rent
Prepaid Insurance
Total Prepaid Expenses
Schedule 8- Property, Plant & Equipment Cost Accumulated Depre

Office equipment 130,000 6,000
Store furniture and fixtures 350,000 20,000
Total Property, Plant & Equipment 480,000 26,000
Schedule 9- Trade and other Payable

Account Payable
Notes Payable
Bank loan Payable
Total Trade and other payables
760,000
10,000
16,000 26,000
734,000
350,000
717,000
1,067,000
490,000 577,000
157,000
75,000
15,000
90,000
67,000
67,000
288,000
67,000
355,000
30,000
325,000
10,000
140,000
80,000
12,000 68,000
160,000
490,000
48,000
25,000
941,000
130,000
6,000 124,000
350,000
20,000 330,000
454,000
1,395,000
290,000
280,000
500,000
1,070,000
325,000
1,395,000
734,000
577,000
157,000
90,000
67,000
67,000
760,000
26,000
734,000
350,000
717,000
1,067,000
490,000
577,000
18,000
32,000
15,000
10,000
75,000
15,000
15,000
288,000
67,000
355,000
30,000
325,000
150,000
228,000
490,000
73,000
941,000
454,000
1,395,000
1,070,000
325,000
1,395,000
140,000
10,000
150,000
80,000
-12,000
160,000
228,000
48,000
25,000
73,000
Accumulated Depreciation Book Value

6,000 124,000
20,000 330,000
26,000 454,000
290,000
280,000
500,000
1,070,000

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TACADAO, EVE ROSE 12-ABM-A

Problems on merchandising FS-Multiple step & Line Item- LANZ CO.

LANZ CO. MULTIPLE STEP

LANZ CO., LINE ITEM

Schedule 1- Net Sales

Schedule 2- Cost of Goods Sold

Schedule 3- Administrative Expenses

Schedule 4- Selling expenses

Schedule 5- Cash and Cash equivalents

Schedule 6- Trade and other receivables

Schedule 7- Prepaid Expenses

Schedule 8- Property, Plant & Equipment Cost Accumulated Depre

Schedule 9- Trade and other Payable

Accumulated Depreciation Book Value

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