Question

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

selling exp.	1,900,000	allowance for bad debts	45,000	additional paid-in cap.	800,000	income tax	68,880
acc. payable	577,000	payroll tax exp.	30,000	acc. rec.	760,000	cash	172,000
interest exp.	151,000	investment income	79,000	marketable security	729,000	common stock ($2 par)	400,000
research exp.	200,000	land	278,000	ret. earnings	178,000	merch. inv.	500,000
dividends declared and paid	20,000	building	971,120	notes pay. ($50,000 will be repaid in the next yr.)	600,000	accum. dep. in building	200,000
treasury stocks	60,000	prepaid insurance	20,000	CGS	4,700,000
admin. exp.	800,000	bonds pay.	500,000	sales	7,921,000

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

Enter the amounts in given format to get desired results: -

В SHAE, INC 1 Income Statement 2 For the Year Ended December 31, 2012 3 7921000 4700000 -C4-C5 4 Sales 5 Cost of goods sold Gross profit 7 Less: Operating Expense Selling expense 9 Administrative Expense 10 Research Expenses 11 Total Operating Expenses 12 Income from operations 1900000 800000 200000 B8+B9+B10 ЕС6-C11 79000 151000 ЕC12+C13-C14 68880 -C15-C16 Investment Income 14 Interest expense 15 Income before taxes 16 Income tax expense 17 Net Income

E F G SHAE, INC 1 Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2012 4 Paid in capital: 400000 800000 5 Common stock 6 Additional Paid in Capital 7 Retained earmings: 178000 -C17 8 Beginning balance 9 Net income for the year 10 Less: Dividends declared and paid during year 20000 11 Ending balance 12 Less: Treasury Stock 13 Total stockholders' equity =F8+F9-F10 60000 -G11+G5+G6-G12

J К SHAE, INC 1 Balance Sheet as on 31-12-2012 4 Assets 172000 5 Cash 760000 6 Accounts receivable 45000J6-J7 729000 500000 20000 Less: Allowance for Doubtful debts 7 8 Marketable securities 9 Merchandise inventory 10 Prepaid insurance -SUM(K5K10) 278000 11 Total current assets 12 Land 13 Buildings and equipment 14 Less: Accumulated depreciation 971120 200000J13-J14 -K26-SUM(K11:K14) - SUM(K11 K15) 15 Difference 16 Total assets 17 18 Liabilities: 19 Accounts payable 20 Рayroll tax pаy. 577000 30000 J19+ J20 500000 600000 |-SUM(K21:K23) -G13 21 Total Current Liabiliities 22 Bonds Payable 23 Notes payable (long- term) 24 Total liabilities 25 Stockholders' equity: 26 Total liabilities and stockholders' equity -SUM(K24:K25)

End Results would be as follows: -

A. C SHAE, INC 1 Income Statement 2 For the Year Ended December 31, 2012 $7,921,000.00 $4,700,000.00 S3,221,000.00 4 Sales 5 Cost of goods sold 6 Gross profit 7 Less: Operating Expense 8 Selling expense 9 Administrative Expense 10 Research Expenses 11 Total Operating Expenses 12 Income from operations $1,900,000.00| $800,000.00 $200,000.00 $2,900,000.00 $321,000.00 $79,000.00 $151,000.00 $249,000.00 $68,880.00 $180,120.00 13 Investment Income 14 Interest expense 15 Income before taxes 16 Income tax expense 17 Net Income

E F G SHAE, INC 1 Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2012 4 Paid in capital: $400,000.00 $800,000.00 5 Common stock 6 Additional Paid in Capital 7 Retained earmings: 8 Beginning balance 9 Net income for the year 10 Less: Dividends declared and paid during year 11 Ending balance 12 Less: Treasury Stock 13 Total stockholders' equity $178,000.00 $180,120.00 $20,000.00 $338,120.00 $60,000.00 $1,478.120.00

K SHAE, INC 1 Balance Sheet 2 as on 31-12-2012 4 Assets $172,000.00 5 Cash 6 Accounts receivable $760,000.00 $45,000.00 S715,000.00 $729,000.00 $500,000.00 $20,000.00 $2,136,000.00 $278,000.00 Less: Allowance for Doubtful debts 7 8 Marketable securities 9 Merchandise inventory 10 Prepaid insurance 11 Total current assets 12 Land 13 Buildings and equipment 14 Less: Accumulated depreciation $971,120.00 $200,000.00 $771,120.00 $0.00 $3,185,120.00 15 Difference 16 Total assets 17 18 Liabilities: 19 Accounts payable 20 Рayroll tax pаy. $577,000.00 S30,000.00 $607,000.00 $500,000.00 $600,000.00 S1,707,000.00 $1,478,120.00 $3,185,120.00 21 Total Current Liabiliities 22 Bonds Payable 23 Notes payable (long- term) 24 Total liabilities 25 Stockholders' equity 26 Total liabilities and stockholders' equity