Hello! I need assistance with the balance sheet listed below. I am unable to get
ID: 2387860 • Letter: H
Question
Hello!
I need assistance with the balance sheet listed below. I am unable to get the balance sheet to balance. I am not sure what I am doing wrong. Below is the Balance sheet, income statement and the list of accounts. I would appreciat any help to get the balance sheet to balance.
Thank you!
Balance Sheet
Assets
List of Accounts
Hello!
I need assistance with the balance sheet listed below. I am unable to get the balance sheet to balance. I am not sure what I am doing wrong. Below is the Balance sheet, income statement and the list of accounts. I would appreciat any help to get the balance sheet to balance.
Thank you!
Balance Sheet
Assets
Current assets Cash $42,485 Securities (available for sale) - at fair market value $28,250 Account Receivable $165,824 Allowance for doubtful accounts -$1,850 $163,974 Inventories $499,493 Prepaid Expenses $16,252 Total current assets $750,454 Noncurrent assets Notes Receivable (due next year) $23,000 Deposits with Vendors $50,000 Total noncurrent assets $73,000 Property, plant and equipment Land $125,000 Building $975,800 Accumulated Depreciations -$341,200 $634,600 Property, plant and equipment, net $759,600 Intangible assets Goodwill $100,000 Patents $125,000 Trademarks $80,000 Copyrights $105,000 Total intangible assets $410,000 Total Assets $1,993,054 Liabilities and Shareholders Equity Current liabilities Notes Payable to Banks $50,000 Accounts Payable $197,532 Accrued Interest on Notes Payable $500 Salaries Payable $52,000 Income Taxes Payable $62,520 Accrued Liabilities $9,500 Mortgage Payable ($1,500 per month) $308,000 Customer Deposits (expected to be paid next year) $420 Total current liabilities $680,472 Noncurrent liabilities Twenty-year, 12% Bonds, due 1/1/2013 $500,000 Total Liabilities $1,180,472 Shareholder's equity Investments in Warren Co. $87,500 Preferred Stock, 7% $300,000 Common Stock $400,000 Additional Paid-in Capital $37,500 Retained earnings $162,582 Total shareholder's equity $987,582 Total liabiltities and Shareholder's Equity $2,168,054 Income Statement Revenue Sales Revenue $2,000,000 Less: Sales Discount $120,000 $1,880,000 Divident Income $30,000 Rental Income $50,000 Interest Revenue $25,000 $1,985,000 Expenses Cost of Goods Sold $1,000,000 Depreciation Expenses $100,000 Selling Expenses $300,000 Administrative Expenses $350,000 $1,750,000 Net Income $235,000Explanation / Answer
Assets Current assets Cash $42,485 Account Receivable $165,824 Allowance for doubtful accounts 1,850 Net accounts receivable 163,974 Inventories 499,493 Securities (available for sale)-at fair Market value 28,250 Notes Receivable (due next year) 23,000 Prepaid Expenses 16,252 Total current assets $773,454 Non-Current assets Investments in Warren Co. $87,500 Land 125,000 Building $975,800 Accumulated Depreciations 341,200 Net building 634,600 Goodwill 100,000 Patents 125,000 Copyrights 105,000 Trademarks 80,000 Deposits with Vendors 50,000 Total noncurrent assets $1,307,100 Total assets $2,080,554 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts Payable $197,532 Income Taxes Payable 62,520 Salaries Payable 52,000 Notes Payable to Banks 50,000 Mortgage payable - current portion 18,000 Accrued Liabilities 9,500 Accrued Interest on Notes Payable 500 Customer Deposits (expected to be paid next year) 420 Total current liabilities $390,472 Noncurrent liabilities Mortgage Payable $290,000 Twenty-year, 12% Bonds, due 1/1/2013 500,000 Total noncurrent liabilities $790,000 Total liabilities $1,180,472 Stockholders equity Preferred Stock, 7% $300,000 Common Stock 400,000 Additional Paid-in Capital 37,500 Retained Earnings 162,582 Total stockholders' equity $900,082 Total liabilities and stockholders equity $2,080,554 - Company Name Income statement For the year ended December 31, 20XX Sales Revenue $2,000,000 Sales Discounts 120,000 Net sales revenue $1,880,000 Cost of Goods Sold 1,000,000 Gross profit $880,000 Less: Operating expenses Selling Expenses Selling Expenses $300,000 Depreciation expenses 60,000 Total selling expenses 360,000 Administrative expenses Administrative Expenses $350,000 Depreciation expenses 40,000 Total administrative expenses 390,000 Total operating expenses 750,000 Total operating income $130,000 Other operating income Rental Income $50,000 Dividend Income 30,000 Interest Revenue 25,000 105,000 Earnings before taxes $235,000 Income Tax Expense 82,250 Net income $152,750
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