Question

From the account balances below. create a proper balance sheet and alement with proper headings for ACME. Incorporated for the period ending 12-31-2010. This was the entity's first year of operations. All de expressed in thousands of dollars. Classify your balance sheet. went Liability, LTL = long term liability. PP&E = long term asset. 28 Property, Plant & Equipment (PP&E) 100 Sales 100 Notes payable (CL) 20 Accounts receivable Inventory 20 Depreciation expense 20 Mortgages owed (LTL) 116 Cash axes payable Accumulated depreciation Rent expense Cost of goods sold Retained earnings Conferences attended expense Interest expense Auto expense Messenger service expense

Answer 1

$30 $15 $20 ACME Balance Sheet December 31, 2010 Million) Liabilities & Shareholders' Equity Current Liabilities: Taxes Payable $28 Short-Term Note Payable $20 Total Current Liabilities $78 Long-term Liabilities: Mortgage Payable $100 Total Liabilities $20 Shareholders' Equity: $80 Retained Earnings $158 Total Liabilities & Shareholders' equity Assets Current Assets: Cash Accounts receivable Inventory Total Current Assets Property, Plant & Equipment: Property, Plant & Equipment Less: Accumulated Depreciation Plant, Property & Equipment, Net Total Assets $35 $116 $151 $7 $ 158

ACME Income Statement For The Year Ended December 31, 2010 Million) Sales Revenue $100 Cost of goods sold $45 Gross profit $55 Operating expenses: Messenger service exp. Rent expense Auto expense Conf. attend expense Depreciation expense Total operating expenses $41 Operating Income $14 Other revenues and expenses: Interest expense Net Income