Question

There's 2 pictures for this assginment. also can you show me the work you do? like the calculations please?

Answer 1

Answer:

Income Statement:

INCOME STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30,2012
PARTICULAR	AMOUNT
SALES	$ 4,87,000.00
PURCHASES	$ 3,30,000.00
OPENING STOCK	$     82,000.00
CLOSING STOCK (Balancing fig.)	$     91,000.00
COST OF GOOD SOLD	$ 3,21,000.00
GROSS PROFIT	$ 1,66,000.00
ADMINISTRATIVE EXPENSES	$ 1,30,000.00
DEPRECIATION	$       5,000.00
OPERATING PROFIT	$     31,000.00
TAX EXPENSE	$       8,000.00
NET OPERATING PROFIT AFTER TAXES	$     23,000.00

Statement of Retained Earning:

Statement of Retained Earnings
OPENING BALANCE (balancing fig.)	$ 1,01,000.00
CURRENT YEAR PROFIT	$     23,000.00
LESS DIVIDENT PAID	$       3,000.00
CLOSING BALANCE	$     81,000.00

Balance Sheet:

BALANCE SHEET as on 30, September 2012
ASSETS	AMOUNT
RECEIVABLES	$ 1,03,000.00
MARKETABLE SECURITIES	$     60,000.00
CASH BALANCE (balancing figure)	$     62,000.00
STOCK	$     91,000.00
GOODWILL (EXCESS PAID OVER BOOKS	$     25,000.00
BUILDING LESS DEPRECIAITON	$     65,000.00
Total Assets	$ 4,06,000.00
LIABILITIES
CREDITORS	$     68,000.00
NOTES PAYABLE	$     67,000.00
CURRENT PORTION OF LONG TERM DEBT	$     10,000.00
LONG TERM BOND	$ 1,13,000.00
OS TAX	$       3,000.00
DEBENTURES	$     34,000.00
Total liabilities	$ 2,95,000.00
SHAREHOLDER EQUITY
COMMON STOCK	$     30,000.00
RETAINED EARNING	$     81,000.00
Total Equity	$ 1,11,000.00
Total liabilities and shareholders equity	$ 4,06,000.00

Cash balance as on September 30, 2012 is $ 62000/-.