Question

Now that you have reviewed financial accounting, here's a chance to quickly see how well you remember the essentials of your previous accounting classes.

Using the account titles below, create these financial statements for EXAMPLE COMPANY for the year ended December 31, XXXX:

• income statement,
• statement of retained earnings, and
• balance sheet.

Please prepare your answers in a spreadsheet that you create, using proper spreadsheet techniques. You don't need to add numbers.

Once you are done, select the Submit Assignment button and submit your spreadsheet.

It is important that you understand what accounts belong on the different financial statements. However, it is critical that you understand how they interact and tell the story of the company's economic position.

Account Title

Account Payable

Account Receivable

Accumulated Depreciation - Building

Accumulated Depreciation - Office Equipment

Accumulated Depreciation - Store Fixtures

Administration Salaries Expense

Advertising expense

Allowance for Doubtful Accounts

Beginning Retained Earnings

Building

Cash

Common Stock

Cost of Good Sold

Credit Card Revenues

Depreciation Expense - Building

Depreciation Expense - Office Equipment

Depreciation Expense - Store Equpment

Dividends on Common Shares

Employer Taxes payable

Freight expense

Gains on Sales of Equipment

Insurance expense

Interest Expense

Interest Payable

Inventory

Land

Mortgage Payable

Notes Payable

Notes Receivable

Office equipment

Office supplies

Office Supplies Expense

Paid in Excess of Par

Patents

Petty Cash

Prepaid Insurance

Rent expense

Rent revenue

Salaries Payable

Sales

Sales Commissions

Sales discounts

Sales returns

Sales Tax payable

Store fixtures

Supplies

Supplies Expense

Unearned revenue

Unfunded Pension Due

Utilities Expense

Answer 1

Prepare financial statements as follows:

EXAMPLE COMPANY
Income Statement
For the Year ended December 31, XXXX
Revenue:
Sales
Less: Sales return
Less: Cost of Goods Sold
Gross profit
Add: Credit card revenues
Add: Rent revenue
Gains on Sales of Equipment
Less: Operating Expense:
Administration Salaries Expense
Advertising expense
Allowance for Doubtful Accounts
Depreciation Expense - Building
Depreciation Expense - Office Equipment
Depreciation Expense - Store Equipment
Freight expense
Insurance expense
Interest Expense
Office Supplies Expense
Rent expense
Sales Commissions
Supplies Expense
Sales discounts
Utility Expense
Net Income/Loss

__________________________________________________________________

EXAMPLE COMPANY
Statement of Retained Earnings
Beginning Retained Earnings
Add: Net Income/(Loss)
Less: Dividends on Common Shares
Ending Balance

_______________________________________________________________________

EXAMPLE COMPANY
Balance Sheet
December XXXX
Assets
Current Assets:
Cash
Office supplies
Petty Cash
Prepaid Insurance
Inventory
Account Receivable
Notes Receivable
Supplies
Total Current Assets
Non-Current Assets:
Land
Building
Less: Accumulated Depreciation - Building
Office equipment
Less: Accumulated Depreciation - Office Equipment
Store fixtures
Less: Accumulated Depreciation - Store Fixtures
Patents
Total Non-current Assets
Total Assets
Liabilities
Current liabilities:
Notes Payable
Interest Payable
Salaries Payable
Sales Tax payable
Unearned revenue
Unfunded Pension Due
Account Payable
Employer Taxes payable
Total Current liabilities
Non-current liabilities:
Mortgage Payable
Total liabilities
Stockholder's Equity
Common Stock
Paid in Excess of Par
Retained Earnings
Total
Total Liabilities & Stockholder's Equity