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Chapter $5$ Financial Statements Practice Problem

Cost of Goods Sold $7,980,178$

Depreciation Expense, Store Equipment $1,395,000$

Rent Expense $-$ Office Space $4,375,000$

Accumulated Depreciation, Store Equipment $1,395,000$

Prepaid Insurance $2,510,950$

Utilities Expense $560,000$

Office Supplies $1,276,820$

Land $8,200,000$

Accumulated Depreciation, Office Furniture $988,000$

Dividends $575,600$

Advertising Expense $3,500,600$

Salaries Payable $5,900,550$

Computer Equipment $3,695,000$

Common Stock $5,500,000$

Store Salaries Expense $4,170,900$

Accumulated Depreciation, Building $5,895,000$

Notes Payable $[$Due on Dec $31,2024]1,911,583$

Office Furniture $2,280,000$

Cash $1,600,000$

Sales $39,900,890$

Building $[$Retail Store$]10,800,000$

Office Salaries Expense $4,244,950$

Accumulated Depreciation, Computer Equipment $1,169,200$

Utilities Payable $560,000$

Merchandise Inventory $7,980,000$

Depreciation Expense, Building $($Retail Store$)5,895,000$

Insurance Expense $1,210,000$

Accounts Receivable $3,990,000$

Depreciation Expense, Computer Equipment $1,169,200$

Retained Earnings, September $1,20224,800,965$

Accounts Payable $6,400,120$

Depreciation Expense, Office Furniture $988,000$

Supplies Expense $700,110$

Store Equipment $6,200,000$

Notes Payable $[$Due on Dec $31,2026]10,876,000$

HAPPINESS CORPORATION

General Ledger Account Balances

August $31,2023$

$2$

Directions:

Use the above information to prepare the below financial

statements. To prepare the Financial Statements students will be

required to only use the examples provided on Canvas and$/$or

the Textbook. Do Not Google answers or use YouTube.

The Financial Statements are demonstrated on Canvas and in the

textbook.

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