Question

Amazing Company began operations on January 1, 2015, and is now in its fourth year of operations. It is a retail sales company with a large number of online sales. The adjusted trial balance as of December 31, 2019 appears below, along with prior year balance sheet data and some additional transaction data for 2018.

AMAZING COMPANY Adjusted Trial Balance 12/31/2019 2019 2018 Account Title Adjusted Trial Balance Post-Closing Trial Balance Debit Credit Debit Credit Cash $ 120,000 $ 125,600 Accounts Receivable 55,000 35,000 Prepaid Insurance 5,000 6,000 Inventory 36,000 15,600 Office Equipment 53,000 47,000 Machinery & Tools 59,000 21,000 Accumulated Depreciation $ 24,000 16,000 Accounts Payable 12,200 16,800 Salaries Payable 2,600 2,700 Sales Tax Payable 2,000 4,000 Note Payable-Long Term 23,000 12,100 Common Stock, $10 par 240,000 160,000 Retained Earnings 38,600 38,600 Dividends 10,000 Sales Revenue 240,000 Cost of Goods Sold 142,600 Rent Expense 20,000 Salaries Expense 48,000 Insurance Expense 11,800 Legal Fees 9,200 Depreciation Expense 8,000 Interest Expense 1,800 Income Tax Expense 3,000 $ 582,400 $ 582,400$ 250,200 250,200

Transaction Data for 2018 (Note, these transactions were included in the trial balance numbers above.)
Cash paid for purchase of office equipment	$                6,000
Cash paid for purchase of tools	15,000
Acquisition of Machinery with Notes Payable—Long-term	23,000
Cash payment of dividends	10,000
Cash receipt from issuance of 8,000 shares of common stock	80,000

I need to create an Income Statement, Balance Sheet, and Statement of Cash Flows with this data. What should I use for each? Thank you!

Answer 1

AMAZING COMPANY Income Statement For the year ended 31 Dec, 2019 Sales Revenue $240,000 Cost of goods Sold 142600 Gross Margin $97,400 20000 Operating Expenses Rent Expense Salaries Expense Insurance Expense Legal Fees Depreciation Expense Operating Income 48000 11800 9200 8000 97000 $400 Other income and expenses Dividends 10000 Interest Expense 1800 11800 Income or loss before Tax Income tax Expense Net Loss ($11,400) 3000 ($14,400)

AMAZING COMPANY BALANCE SHEET 31-Dec-19 Liabilities and Shareholders Equity Assets Current Assets Cash Accounts Receivable Inventory Prepaid Insurance Current Liabilities $120,000 Accounts Payable 55000 Salaries Payable 36000 Sales tax Payable 5000 Total Current $216,000 Liabilities $12,200 2600 2000 Total Current Assets $16,800 23000 Property and Equipment Office Equipment Machinery and Tools Less accumulated depreciation Notes Payable Long Term 53000 Shareholders Equity 59000 Common Stock 240000 -24000 Retained Earnings Net Loss $304,000 38600 - 14400 $304,000 Total Assets

AMAZING COMPANY Statement of Cash Flows 31st December 2019 $125,600 Cash, Opening Balance Cash flow from operating expenses Net loss -14400 Additions Depreciation Decrease in Prepaid Insurance 8000 1000 -20000 -20400 Less Increase in Accounts Receivable Increase in Inventory Decrease in Accounts Payable Decrease in Salaries Payable Decrease in Sales tax Payable Net Cash from operating activities -4600 -100 -2000 ($52,500) Cash flow from investing activities Purchase of office equipment Purchase of Machinery and Tools -6000 -38000

Cash flow from investing activities Long term money received Notes Cash from issuance of common stock 10900 80000 Cash flow for the period 12/31/2019 Closing Cash balance 12/31/2019 ($5,600) $120,000

Dividend paid in cash of $10000 already considered in net loss.