Question

34 Extra Homework From the following information for 2019 for Logan, Inc. prepare Financial Statements. Assume a December 31-year end. Accounts Payable $200,000 80,000 46,000 19,000 300,000 108,000 300,000 500,000 Accounts Recelvable Accumulated Depreciation Advertising Expense Building Cash Common Stock Cost of Goods Sold Equipment Interest Expense 5,000 118,000 28,000 10,000 50,000 75,000 171,000 825,000 60,000 100,000 18,000 9,000 40,000 Depreciation Expense Notes Payable, Long-Term Patent Rent Expense Retained Earnings Sales Salaries Payable Salary Expense Tax Expense Taxes Payable Utilities Expense Logan, Inc. issued 200 shares of common stock on June 30, 2019. There were 800 shares of common stock outstanding at the end of 2018 (last year). The company declared and paid a $10,000 dividend during 2019. The beginning Common Stock was $240,000 and the beginning Retained Earnings was $141,000.

Answer 1

	TRIAL BALANCE
	Account	Debit	Credit
	Accounts payable		$200,000
	Accounts Receivable	$80,000
	Accumulated Depreciation		$46,000
	Advertising expenses	$19,000
	Building	$300,000
	Cash	$108,000
	Common Stock		$300,000
	Cost of goods sold	$500,000
	Equipment	$140,000
	Interest expense	$5,000
	inventory	$118,000
	Depreciation expense	$28,000
	Notes Payable-Long term		$10,000
	Patent	$50,000
	Rent expense	$75,000
	Retained Earnings		$141,000
	Sales		$825,000
	Salaries payable		$60,000
	Salary expense	$100,000
	Tax expense	$18,000
	Taxes Payable		$9,000
	Utilities expense	$40,000
	Dividend	$10,000
	Total	$1,591,000	$1,591,000
	INCOME STATEMENT
	Sales		$825,000
	Cost of goods sold		$500,000
	Gross Profit		$325,000
	Operating Expenses:
	Salary expense	$100,000
	Utilities expense	$40,000
	Advertising expenses	$19,000
	Rent expense	$75,000
	Depreciation expense	$28,000
	Total Operating expenses		$262,000
	Earning Before interest and taxes (EBIT)		$63,000
	Interest expense		$5,000
	Earning Before Taxes (EBT)		$58,000
	Tax expenses		$18,000
	Net Income		$40,000
	STATEMENT OF RETAINED EARNINGS:
	Retained Earnings as on January1, 2018	$141,000
	Net Income for the year	$40,000
	Dividend paid during the year	($10,000)
	Retained earnings as on January1, 2019	$171,000
	BALANCE SHEET
	Current Assets:
	Cash	$108,000
	Accounts Receivable	$80,000
	inventory	$118,000
	Total Current Assets	$306,000
	Non Current Assets:
	Building	$300,000
	Equipment	$140,000
	Patent	$50,000
	Accumulated Depreciation	($46,000)
	Total Non Current Assets	$444,000
	Total Assets	$750,000
	Current Liabilities:
	Accounts payable	$200,000
	Salaries payable	$60,000
	Taxes Payable	$9,000
	Total Current Liabilities	$269,000
	Long Term Liabilities:
	Notes Payable-Long term	$10,000
	Total Liabilities	$279,000
	Shareholders' Equity;
	Common Stock	$300,000
	Retained earnings	$171,000
	Total Shareholders' Equity	$471,000
	Total Liabilities & Shareholders' Equity	$750,000