Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 573

Financial Statements

Chapter 18

Student Assignment

Comprehensive Financial Statement Problems18.3.4

1. A to Z Auto Parts
   A) Prepare the income statement for the period ended December 31, 20XX, using the account bal-
   ances provided. Include component percentages for net sales, cost of merchandise sold, gross
   profit on sales, total expenses, and net income.
   B) Compute the ending balance in the Owner’s Capital account as of December 31, 20XX, using the
   account balances and information provided.
   C) Prepare the balance sheet as of December 31, 20XX, using the account balances and information
   provided.


2. Electron Games
   A) Prepare the income statement for the period ended December 31, 20XX, using the account bal-
   ances provided. Include component percentages for net sales, cost of merchandise sold, gross
   profit on sales, total expenses, and net income.
   B) Compute the ending balance in the Owner’s Capital account as of December 31, 20XX, using the
   account balances and information provided.
   C) Prepare the balance sheet as of December 31, 20XX, using the account balances and information
   provided.