Question

I need some help with the following information. Thanks in advance!   

selling exp.	36,000	allowance for bad debts	30,000	additional paid-in cap.	60,000	income tax	42,000
acc. pay.	45,000	payroll tax pay.	16,000	acc. rec.	50,000	cash	96,000
interest exp.	24,000	investment income	15,000	marketable security	90,000	common stock $4 par	105,000
research exp.	10,000	land	110,000	ret. earnings	64,500	merch. inventory	132,000
declared and paid dividends	19,500	building	126,000	notes pay. ($20,000 repaid by next yr.)	150,000	accum. dep. in land	108,000
treasury stocks	45,000	prepaid insurance	12,000	CGS	4,800
admin. exp.	20,000	bonds pay.	21,000	sales	450,000

Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2012, and a balance sheet at December 31, 2012, for Shae, Inc.

Answer 1

SHAE, INC.
Income Statement
For the Year Ended December 31, 2012
Sales		450,000
Cost of goods sold		-4,800
Gross profit		445,200
Less: Operating Expense
Selling expense	36,000
Administrative Expense	20,000
Research Expenses	10,000
Total Operating Expenses		-66,000
Income from operations		379,200
Investment Income		15,000
Interest expense		-24,000
Income before taxes		370,200
Income tax expense		-42,000
Net Income		328,200
SHAE, INC.
Statement of Changes in Stockholders’ Equity
For the Year Ended December 31, 2012
Paid - in capital:
Common stock		105,000
Additional Paid in Capital		60,000
Retained earnings:
Beginning balance	64,500
Net income for the year	328,200
Less: Dividends declared and paid during year	-19,500
Ending balance		373,200
Less: Treasury Stock		-45,000
Total stockholders’ equity		493,200
SHAE, INC.
Balance Sheet
31-Dec-12
Assets:
Cash		96,000
Accounts receivable	50,000
Less: Allowance for Doubtful debts	-30,000	20,000
Marketable securities		90000
Merchandise inventory		132,000
Prepaid insurance		12,000
Total current assets		350,000
Land		110,000
Buildings and equipment	126,000
Less: Accumulated depreciation	-108,000	18,000
Differnce		247,200
Total assets		725,200
Liabilities:
Accounts payable	45,000
Payroll tax pay.	16,000
Total Current Liabiliities		61,000
Bonds Payable		21,000
Notes payable (long- term)		150,000
Total liabilities		232,000
Stockholders’ equity:		493,200
Total liabilities and stockholders’ equity		725,200