Problem I-ANNUAL FINANCIAL STATEMENTS FOR 2017 (due Wednesday, September 26, 201

Question

Problem I-ANNUAL FINANCIAL STATEMENTS FOR 2017 (due Wednesday, September 26, 2018, at the beginning of class) -10 points Each student is required to use a computer spreadsheet to develop a complete set of formal finan- cial statements (Income Statement, Retained Earnings Statement, and Balance Sheet) for Company (you may select the name of your company). The financial statements should be prepared in proper order using proper terminology and showing appropriate totals and subtotals. The financial statements should be linked so that changes in one statement will be automatically reflected in the other financial statements. The financial statements will be based upon the alphabetical trial balance on December 31. 2017, on the next page. These financial statements will be updated to December 31, 2018, in a later computer project problem this semester and will be updated periodically next semester for additional transactions. The transactions will correspond with material covered in class in Intermediate II. The transactions will be cumulative, which means that you will be expected to make corrections to previous assignments before you proceed with additional assignments. In keeping the transactions corresponding with the classroom material, the order of the transactions will be somewhat unrealistic and the amounts of the transactions will be relatively small. Two accounts have been omitted from the list on the next page. Income Tax Expense and Income Tax Payable have not been calculated yet. Assume the company is in a 30% tax bracket and that the 30% rate applies to all items of income or loss, including "weird" items. Merchandise inventory at the beginning of the year was S(look at Income Summary and work backwards). For earnings per share calculations, assume no common stock was sold or purchased during the year. Please format all numbers on the financial statements with commas and NO decimals (except for earnings per share-which should have two decimals)

Explanation / Answer

TOTAL

181750

Balance Sheet as at 30/9/2018 ABC company Particulars Note no. Figs EQUITY & LIABILITIES (1) Shareholders Funds (a) Share Capital 1 151500 (b) Reserves & surplus 2 29550 ©Money received against share warrants 0 (2)Share application money pending allotment 0 (3) Non Current Liabilities (a)Long term borrowing 0 (b)Deferred tax liabilities 0 ©Other Long Term liabilities 0 (d)Long Term provisions 0 (4)Current liabilities (a) Short term borrowings 0 (b) Trade payables 12000 ©Other current liabilities 3 2000 (d)Short Term provisions 0 TOTAL 195050 ASSETS (1) Non Current Assets (a)Fixed Assets (i)Tangible Assets 6 97000 (ii)Intangible Assets 8000 (iii)Capital Wip 0 (iv)Intangible assets under development 0 (b)Non Current Investments 0 ©Deferred tax assets 0 (d)Long Term Loans & Advances 0 (e)Other Non Current Assets 0 (2)Current Assets (a)Current investments 10000 (b)Inventories 18500 ©Trade Receivables 25000 (d)Cash & Cash Equivalents 20250 (e)Short Term Loans & Advances 0 (f)Other current assets 4 3000

TOTAL

Statement of Profit & Loss ABC company Profit & Loss statement for the year ended Particulars Note No. Figs I.Revenue from operations 5 128000 II.Other income 4500 III.Total Revenue 132500 IV.Expense a.Cost of materials consumed 1000 b.Purchase of stock in trade 49500 c.Change in Inventories of Finished goods , WIP & stock in trade 0 d.Employee Benefit Expenses 25000 e.Finance Costs 3500 f.Depriciation & amortisation expense 11000 g.Other Expense 7 31950 IV.Total Expense 121950 V.Profit before exceptional and extraordinary items & tax (III-IV) 10550 VI.Exceptional items 0 VII.Profit before extraordinary items & Tax(V-VI) 10550 VIII.Extraordinary items 0 IX.Tax expense (1)Current Tax 3165 (2)Deferred Tax 0 XI.Profit(loss)for the period from continuing operations(VII-VIII) 10550 XII.Profit/Loss from discontinuing operations -13000 XIII.Tax expense of discontinuing Operations 0 XIV.Profit /Loss drom discontinuing operation (after tax)(XII-XIII) -13000 XV.Profit/Loss for the period(XI+XIV) -2450 XVI. Earning Per share 1. Share Capital Bonds 35000 Stock 83000 Paid in capital 25000 Treasury Stock 8500 TOTAL 151500 2. Reserves & Surplus Retained earning 30000 Dividend declared 3000 Dividend Income 1000 2000 Profit /loss for the year -2450 TOTAL 29550 3.©Other current liabilities O/s Interest 1500 O/d wages 500 TOTAL 2000 4. (e)Other Current Assets Prepaid Insurance 3000 TOTAL 3000 5.I.Revenue from operations Sales 140000 Less: Sales return 2000 120000 Income from merchandise 8000 TOTAL 128000 6.Tangible Assets Equipment 110000 Less:Accumulated depriciation 29000 Less: Depriciation 9000 Total 72000 Land 25000 TOTAL 97000 7. Other expense Bad debts 2500 Less:Allowance for doubtful debts 500 2000 Insurance expense 4000 Rent expense 7000 Royalty Expense 2000 Supplies expense 3700 Utilities expense 13250 TOTAL 31950

181750

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