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Alchemical Company Statement of Earnings For the Month Ended May 31, 2011 (in millions) Cash Deduct expenses Cost of goods sold Cost of goods sold Other assets Sales revenue Selling and administrative expense Net earnings (loss) Accounts payable Accounts receivable Cash Cost of goods sold Depreciation Inventory Other assets Other liabilities Property, plant and equipment Rent and insurance expense Sales revenue Selling and administrative expense Stockholders' equity Cartof ASSES Liabilities - Stocknoiders Equity Other Other Cash AR . Inv Assets PPE AP . Liab SE Bal4/27 571 1.632 1,523 6,032 2.364 1896 8,645 1,581 33 a1 22 - a2 (7) . (7) b 11 11 12 - (12) 60 d (60) (6) 1 (0 (8) - (20) (20) 9 (3) (3) h 520 1,842 1,527 6,072 2361 1,901 8,645 1.576 Bal Requirement 2. Prepare a statement of earnings for the month ended May 31 and a balance sheet as of May 31 Ignore income taxes Begin by preparing the statement of earnings for the month of May (Leave any unused cells blank. Use a minus sign or parentheses for a net loss.) Data table $ $ Cash Receivables Inventories 1,896 8,645 571 Accounts payable 1,632 Other liabilities 1,523 6,032 Shareholders' equity 2,364 1,581 Other assets Property, plant, and equipment $ 12,122 Total 12,122 Total Print Done More info a. Peanut butter carried in inventory at a cost of $7 was sold for cash of $11 and on open account of $22, for a grand total of $33. b. Acquired inventory on account, $11. c. Collected receivables, $12 d. On May 2, used $60 cash to prepay some rent and insurance for 3 months. Alchemical classifies prepaid expenses as Other Assets e. Payments on accounts payable (for inventories), $6. Paid selling and administrative expenses in cash, $8. g. Prepaid expenses of $20 for rent and insurance expired in May h. Depreciation expense of $3 was recognized for May Print Done

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