Question

The Pina Colada Corp. is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All account balances are normal. Accounts Payable Accounts Receivable Accumulated Depr.-Equipment Cash Common Stock Cost of Goods Sold Dividends Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue Unadjusted $25,100 30,400 33,000 27,000 9.900 502,000 10,500 5,300 147,000 Adjusted $25,100 30,400 44,000 27.000 9.900 502.000 10,500 5,300 147.000 11,000 7,600 6,300 12.000 Inventory Notes payable Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue Utilities Expense Unadjusted Adjusted $28,500 $28,500 35,500 35,500 10,100 2.500 2,500 2.500 14,600 14.600 61,700 61,700 92.800 92.800 6,500 11.000 4,500 7,300 7,300 720,000 720,000 8.900 8.900 6,300 12,000

Answer 1

Balance Sheet
Assets
Current Assets
Cash	$        27,000
Accounts Receivable	$        30,400
Inventory	$        28,500
Prepaid Insurance	$          2,500
Total Current Assets		$        88,400
Property, Plant and Equipment
Equipment	$      147,000
Less : Accumulated Depreciation	$      (44,000)
Total Property, Plant and Equipment		$     103,000
Total Assets		$     191,400
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$        25,100
Sales Commission Payable	$          4,500
Property Tax Payable	$          2,500
Interest Payable
Total Current Liabilities		$        32,100
Long term Liabilities
Notes Payable		$        35,500
Total Liabilities		$        67,600
Stockholder's Equity
Common Stock	$          9,900
Retained Earnings	$      113,900
Total Stockholder's Equity		$     123,800
Total Liabilities & Stockholder's Equity		$     191,400

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