Single Entry Method

Lancer Company - 15-14

Dec. 31 Jan. 1
1) Total Assets 6,880,000 6,000,000
Total Liabilities 1,600,000 2,120,000
Capital 5,280,000 3,880,000

Capital, December 31 5,280,000

Add: Withdrawal 400,000
Total 5,680,000
Less: Capital, January 1 3,880,000
Investment 600,000 4,480,000
Net Income 1,200,000

2) Notes Receivable, December 31 1,200,000

Accounts Receivable, December 31 2,000,000
Collection of Accounts Receivable 3,000,000
Collection of Notes Receivable 960,000
Sales Discounts 100,000
Bad Debts (Written Off) 120,000
Sales Returns 320,000
Total 7,700,000
Less: Notes Receibable, January 1 400,000
Notes Receivable, January 1 1,600,000 2,000,000
Sales on Account 5,700,000
Cash Sales 800,000
Total Sales 6,500,000

3) Notes Payable, December 31 480,000

Accounts Payable, December 31 1,040,000
Payment of Accounts Payable 1,520,000
Payment of Notes Payable 1,280,000
Purchase Allowance 80,000
Total 4,400,000
Less: Accounts Payable, January 1 1,200,000
Notes Payable, Janauary 1 720,000 1,920,000
Purchases on Account 2,480,000
Cash Purchases 600,000
Total Purchases 3,080,000

4) Rent Received 80,000

Add: Unearned Rent Income, January 1 120,000
Total 200,000
Less: Unearned Rent Income, December 31 40,000
Rent Income 160,000

5) Sale Price of Equipment 120,000

Less: Carrying Amount of Equipment Sold 100,000
Gain on Sale of Equipment 20,000

6) Equipment, January 1 1,200,000

Add: Acquisition 400,000
Total 1,600,000
Less: Equipment, December 31 1,120,000
Carrying Amount of Equipment Sold 100,000 1,220,000
Depreciation 380,000

7) Interest Paid 160,000

Add: Accrued Interest Payable, Decembr 31 40,000
Total 200,000
 Less:Accrued Interest Payable, January 1 80,000
Interest Expense 120,000

Lancer Store
Income Statement
Year Ended December 31, 2021

Net Sales (Note 1) 6,080,000

Cost of Goods Sold (Note 2) 3,640,000
Gross Income 2,440,000
Other Income (Note 3) 180,000
Total 2,620,000
Expenses:
Adminstrative Expense 800,000
Distribution Expenses 500,000
Finance Cost 120,000 1,420,000
Net Income 1,200,000

Note 1 - Net Sales

Sales 6,500,000
Sales Discount (100,000)
Sales Returns (320,000)
Net Sales 6,080,000

Note 2 - Cost of Goods Sold

Inventory, January 1 1,600,000
Purchases 3,080,000
Purchase Allowance 80,000 3,000,000
Goods Available for Sale 4,600,000
Less: Inventory, December 31 960,000
Cost of Goods Sold 3,640,000

Note 3 - Other Income

Rent Income 160,000
Gain on Sale of Equipment 20,000
Total 180,000

Corolla Company Problem 15-15

1) Retained Earnings, December 31 600,000

Add: Dividend 400,000
Total 1,000,000
Less: Retained Earnings, January 1 500,000
Net Income 500,000

2) Notes Receivable, December 31 210,000

Accounts Receivable, December 31 950,000
Collection of Accounts Receivable & Notes 2,950,000
Notes Discountesd 200,000
Total 4,310,000
Less: Notes Receibable, January 1 200,000
Notes Receivable, January 1 740,000 940,000
Sales on Account 3,370,000

3) Loss on Notes Discounted ( 200,000 - 190,000) 10,000

4) Accrued Interest Expense on Notes Issued (300,000 x 12% x 10/12) 30,000

5) Sales Price 250,000

Less: Cost of Investment Sold 300,000
Loss on Sale of Investment (50,000)
6) Notes Payable, December 31 580,000
Less: Notes Payable- Bank 300,000
Notes Payable Trade 280,000
Accounts Payable, December 31 750,000
Payments of Accounts and Notes Payable 2,100,000
Total 3,130,000
Less: Notes Payable, January 1 750,000
Accounts Payable, Janauary 1 600,000 1,350,000
Purchases on Account 1,780,000

7) Expenses Paid 790,000

Add: Prepaid Expense, January 1 120,000
Accrued Expense, December 31 50,000
Total 960,000
Less: Prepaid Expense, December 31 100,000
Accrued Expense, January 1 40,000 140,000
Total Expense 820,000

6) Equipment, January 1 1,000,000

Add: Acquisition 280,000
Total 1,280,000
Less: Equipment, December 31 1,200,000
Depreciation 80,000

Corolla Company
Income Statement
Year Ended December 31, 2021

Sales 3,370,000
Cost of Goods Sold
Inventory, January 1 1,600,000
Purchases 1,780,000
Goods Available for Sale 3,380,000
Less: Inventory, December 31 1,500,000 1,880,000
Gross Income 1,490,000
Expenses:
Expenses: 820,000
Depreciation 80,000
Loss on Sale of Investment 50,000
Loss on Notes Discounted 10,000
Interest Expense 30,000 990,000
Net Income 500,000

Camry Company Problem 15-16

1) Total Assets 1,590,000

Less: Liabilities
Accounts Payable 250,000
Accrued Salaries Payable 10,000
Notes Payable 200,000 460,000
Capital, January 1 1,130,000

2) Cash Balance, January 1 200,000

Add: Deposit 3,930,000
Total 4,130,000
Less: Checks Drawn 3,360,000
Bank Service Charge 10,000 3,370,000
Cash Balance, December 31 760,000
3) Accounts Payable, January 1 250,000
Add: Purchases 2,280,000
Total 2,530,000
Less: Purchase Returns 70,000
Payments 2,200,000 2,270,000
Accounts Payable, December 31 260,000

4) Salaries Paid 400,000

Accrued Salaries, Decmber 31 15,000
Total 415,000
Less: Accrued Salaries, January 1 10,000
Salaries Expense 405,000

5) Supples Paid 75,000

Add: Prepaid Supplies, January 1 40,000
Total 115,000
Less: Prepaid Supplied, December 31 20,000
Supplies Expense 95,000

6) Taxes Paid 45,000

7) Miscellaneous Expense Paid 35,000

8) Other Expenses Paid 245,000

9) Notes Payable, January 1 200,000

Less: Payment 120,000
Notes Payable, December 31 80,000

10) Accounts Receivable, December 31 450,000

Accounts Collected 1,720,000
Accounts Written Off 30,000
Total 2,200,000
Less: Accounts Receivable, January 1 420,000
Sales on Account 1,780,000

11) Allowance for Doubtful Accounts, Jan. 1 20,000

Add: Doubtful Accounts Expense (Squeeze) 60,000
Total 80,000
Less: Accounts Written Off 30,000
Allowance for Doubtful Accounts, Dec. 31 50,000

12) Total Deposit 3,930,000

Less: Accounts Receivable Collected 1,720,000
Cash Sales 2,210,000
Add: Sales on Account 1,780,000
Total Sales 3,990,000

13) Depreciation (350,000 x 10%) 35,000

Camry Company
Income Statement
Year Ended December 31, 2021
Sales 3,990,000
Cost of Goods Sold
Inventory, January 1 700,000
Purchases 2,280,000
Less: Purchase Returns 70,000 2,210,000
Goods Available for Sale 2,910,000
 Less: Inventory, December 31 650,000 2,260,000
Gross Income 1,730,000
Expenses:
Salaries 405,000
Suplies 95,000
Taxes 45,000
Other Expenses 245,000
Doubtful accounts expense 60,000
Depreciation 35,000
Bank Service Charge 10,000
Miscellaneous Expense 35,000 930,000
Net Income 800,000

Camry Company
Statement of Financial Position
December 31, 2021
Assets
Current Assets:
Cash 760,000
Accounts Receivable (net) 400,000
Merchandise Inventory 650,000
Prepaid Insurance 20,000
Total Current Assets 1,830,000
Noncurrent Assets:
Equipment 350,000
Less Accumulated Depreciation 135,000
Total Noncurrent Assets 215,000
Total Assets 2,045,000

Liabilities and Stockholders' Equity

Current Liabilities:
Accounts Payable 260,000
Notes Payable 80,000
Accrued Salaries Payable 15,000
Total Current Liasbilities 355,000
Equity:
Capital, January 1 1,130,000
Add: Net Income 800,000
Total 1,930,000
Less: Drawing 240,000
Total Equity 1,690,000
Total Liabilities and Equity 2,045,000