Question

Cash $28,784 Depreciation Expense $4,100 Taxes Payable $712 Land $62,000 Treasury Stock $2,210 Mortgage $43,500 Payable Sales Discounts $1.258 and Returns $5,292 $355 Accounts Receivable Accumulated Depreciation Supplies Expenses Income Tax Expense Bonds Payable $38,000 $17,250 $780 Equipment $32,600 $2,900 Notes Payable $11,000 Cost of Goods $31.500 Interest Expense Current Portion of Bonds Payable Utilities Expense $6,200 Current Portion of Mortgage Payable $2,350 Sold Product Sales (Gross) $66,145 $950 Inventory $12,500 Discount of Bonds Payable $970 Salaries Expense $12,000 $1,050 Buildings 00 Goodwill $350 $5,340 Revenues from Software Licenses Advertising Expenses Marketable Securities Deferred Revenues Current Portion Notes Payable Sales Expenses $7,200 Salaries Payable $412 $3,450 $5,340 $1,100 $670 Accounts Payable Interest Payable PrePaid Expenses Dividends Payable $710 $500 1,100 In addition, the company had common stock of $42,000 at the beginning of the year and issued an additional $3,500 during the year. The company also had retained earnings of $28,700 at the beginning of the year and declared dividends of $1,500 during the year.

Use the information above to develop a Balance Sheet and Income Statement. Answer the following questions

A) Calculate the Net Income (or Net Loss) After Interest and Taxes

B) Calculate the Total Amount of Current Assets

C) Calculate the Total Amount of Current Liabilities.

D) Calculate the Total Assets

E) What is the total amount of the stockholders equity

Answer 1

ANSWER

Trial Balance December 31 Income Statement For the Year Ended December 31 Account Titles Cash Marketable Securities $66,145 -$1,258 Debit Credit Sales Less: Sales Returns and Allowances Net Sales Revenue $28,784 $3,450 $5,292 $12,500 $1,100 $62,000 $52,000 $32,600 $350 $64,887 $1,050 $65,937 $31,500 $34,437 Revenues from Software Licenses Accounts Receivable Total Operating Revenue Cost of Goods Sold Gross Profit Inventory Prepaid Expenses Land Buildings Equipment Goodwill Accumulated Depreciation Accounts Payable Salaries Payable Taxes Payable Interest Payable Deferred Revenue Dividends Payable Current Portion of Bonds Payable Current Portion of Mortgage Payable Current Portion of Note Payable Bonds Payable Discount of Bonds Payable Mortgage Payable Note Payable Common Stock Operating Expenses: Sales Expenses Depreciation Expense Salaries Expense Adevertising Expense Supplies Expense Utilities Expense Total Operating Expenses Operating Profit Interest Expense Income Before Taxes $7,200 $4,100 $12,000 $5,340 $355 $950 $17,250 $5,340 $412 $712 $710 $670 $500 $6,200 $2,350 $1,100 $38,000 $29,945 $4,492 $2,900 $1,592 $780 $812 Income Tax Expense Net Income (or Net Loss) After Interest and Taxes $970 Statement of Retained Earnings For the Year Ended December 31 $43,500 $11,000 $45,500 $28,700 Retained Earnings - Beginning Balance Add: Net Income Less: Dividends Net decrease in retained earnings Retained Earnings - Ending Balance $812 -$1,500 [Ref: Income Statement] Treasury Stock Retained Earnings Dividends $2,210 $28,700 $688 $28,012 $1,500

Product Sales (Gross) Revenues from Software Licenses Sales Discounts and Returns Cost of Goods Sold Sales Expenses Depreciation Expense Salaries Expense Adevertising Expense Supplies Expense Income Tax Expense Utilities Expense Interest Expense Totals $66,145 $1,050 $1,258 $31,500 $7,200 $4,100 $12,000 $5,340 $355 $780 $950 $2,900 $269,139 $269,139 Balance Sheet December 31 Liabilities & Shareholders' Equity Assets Current Assets: Current Liabilities: Accounts Payable Salaries Payable Taxes Payable Interest Payable $28,784 $3,450 $5,292 $5,340 $412 Cash Marketable Securities $712 Accounts Receivable $12,500 $710 Inventory $670 $1,100 Deferred Revenue Prepaid Expenses Dividends Payable $51,126 $500 Total Current Assets

Current Portion of Bonds Payable $6,200 $2,350 $1,100 Current Portion of Mortgage Payable Property, Plant and Equipment: $62,000 $52,000 $32,600 $146,600 Current Portion of Note Payable Land $17,994 Buildings Total Current Liabilities Long-Term Liabilities: Bonds Payable Discount of Bonds Payable Equipment $38,000 -$970 $43,500 $11,000 -$17,250 Less: Accumulated Depreciation Property, Plant and Equipment, Net $129,350 Mortgage Payable Note Payable Intangible Assets: $350 $91,530 $109,524 Goodwill Total Long-Term Liabilities Total Liabilities Shareholders' Equity: $45,500 -$2,210 $28,012 Common Stock Treasury Stock Retained Earnings Shareholders' Equity [Ref: Statement of Retained Earnings] $71,302 $180,826 Total Assets $180,826 Total Liabilities & Shareholders' equity

__________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU*************