Comprehensive Problem # 3 ACCOUNTING MAJORS ONLY

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CP3

COMPREHENSIVE PROBLEM 3
SPRINGDALE RETAIL, INC.
a.
Springdale Retail, Inc.
Income Statement
For the Year Ended December 31, 2015
Sales
Less: Sales returns and allowances
Net Sales
Cost of goods sold
Gross profit
Operating expenses:
Salaries
Rent Expense
Utilities expense
Depreciation expense: office equipment
Insurance expense
Office supplies expense
Income before income taxes
Income tax expense
Net income
b.
Springdale Retail, Inc.
Statement of Retained Earnings
For the Year Ending December 31, 2015
Retained earnings, January 1, 2015
Add: Net income (from income statement)
Deduct: Dividends declared
Ending Retained earnings, December 31, 2015

roufaiel: roufaiel: Check Figure: 28,300
roufaiel: roufaiel: Check Figure: 12,250

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&"Arial,Italic"&8© 2015 by McGraw-Hill Global Education Holdings, LLC. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

CP3(p.2)

COMPREHENSIVE PROBLEM 3
SPRINGDALE RETAIL, INC.
(continued)
c.
Springdale Retail, Inc.
Statement of Financial Position
As of December 31, 2015
ASSETS
Current assets:
Cash
Accounts receivable
Merchandise inventory
Office supplies
Prepaid rent
Total current assets
Non-current Assets
Office equipment
Less: Accumulated depreciation
Land
Total Assets
LIABILITIES
Current liabilities:
Accounts payable
Notes payable
Sales taxes payable
Total current liabilities
Non-current liabilities:
Bonds payable
Premium on bonds payable
Deferred income taxes
Total Liabilities
STOCKHOLDERS' EQUITY
Preferred stock, $20 par value, 250 shares issued and
outstanding
Common Stock, $10 par value, 1,800 shares issued
Additional paid-in capital (common stock)
Retained earnings
Less: Treasury stock (200 common shares at cost)
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

roufaiel: roufaiel: Check Figure: 104,500

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&9© The McGraw-Hill Companies, Inc., 2012 &A

&"Arial,Italic"&8© 2015 by McGraw-Hill Global Education Holdings, LLC. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

&"Arial,Italic"&8Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.