Question

Accounts Payable 57,000 Long-term investments 35,000 Accounts Receivable 32,000 Trademarks 6,000 Building 255,000 Accrued Expenses 9,000 Cash 15,000 Short-term Notes Payable 35,000 Equipment 76,000 Common Stock 1,000 Retained Earnings Interest Income 2,000 Prepaid Expenses 12,000 Inventory 82,000 Sales 123,000 Dividends paid 25,000 Salary Expense 22,000 Cost of Goods Sold 62,000 Prepare a balance sheet.

Answer 1

Income Statement
Revenues
Sales		$ 1,23,000
Less: Expenses
Salary expense	$ 22,000
Utility expense	$   8,000
Cost of goods sold	$ 62,000
Income tax expense	$   9,000
Total expenses		$ 1,01,000
Net income		$     22,000

Balance Sheet
Assets
Current assets
Cash	$     15,000
Accounts receivable	$     32,000
Interest receivable	$       2,000
Inventory	$     82,000
Prepaid expenses	$     12,000
Total current assets		$ 1,43,000
Non-current assets
Long term investments		$     35,000
Property, Plant and Equipment
Building	$ 2,55,000
Equipment	$     76,000
Total Property, Plant and Equipment		$ 3,31,000
Intangible assets
Trademarks		$       6,000
Total assets		$ 5,15,000
Liabilities and stockholders equity
Current liabilities
Accounts payable	$     57,000
Short term note payable	$     35,000
Accrued expenses	$       9,000
Total current liabilities		$ 1,01,000
Stockholders Equity
Common stock	$       1,000
Retained earnings ($416,000+$22,000-$25,000)	$ 4,13,000
Total stockholder Equity		$ 4,14,000
Total liabilities and stockholders Equity		$ 5,15,000

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