Listed below are the accounts for Colton’s Peppa Pigs, Inc. at December 31, 2015
ID: 2488478 • Letter: L
Question
Listed below are the accounts for Colton’s Peppa Pigs, Inc. at December 31, 2015 and their balances. The amounts listed for the Income Statement accounts are before the closing entry has been posted. The amounts for the Balance Sheet accounts are after the closing entry has been posted.
Accounts Payable $60,000
Accounts Receivable 150,000
Accumulated Depreciation 85,000
Advertising Expense 8,000
Building 200,000
Cash 183,200
Common Stock 10,000
Cost of Goods Sold 460,000
Equipment 100,000
Interest Expense 9,600
Insurance Expense 2,400
Inventory 62,000
Depreciation Expense 46,000
Note Payable 80,000
Office Expense 2,000
Paid in Capital 200,000
Rent Expense 36,000
Retained Earnings 280,200
Sales 900,000
Salaries Payable 8,000
Salary Expense 200,000
Security Deposit 40,000
Tax Expense 37,000
Taxes Payable 12,000
Utilities Expense 10,000
Colton’s Peppa Pigs beginning balance (12/31/14) in Retained Earnings was $200,000 and the beginning Common Stock and paid in capital balances were $140,000. The company had 13,000 shares of $1 par value common stock outstanding at the beginning of the year. During 2015 the company paid a dividend of ?????. The corporation issued 7,000 shares of common stock on April 1, 2015. The Note Payable requires annual payments of $10,000 on principal plus interest at 8% on December 31st.
(You need to do some Figuring to get the common stock correct.) Prepare a Financial Statement and the Earnings per share
Explanation / Answer
Balance sheet as at Dec 31, 2014 Liabilities $ Assets $ Common stock 10,000 Building 2,00,000 Paid in capital 2,00,000 Equipment 1,00,000 Accounts Payable 60,000 Security deposits 40,000 Retained earnings 2,80,200 Accounts Receivable 1,50,000 Notes Payable (70000-10000) 70,000 Inventory 62,000 Accumulated Depreciation 85,000 Cash (183200-10000) 1,73,200 Salaries Payable 8,000 Tax Payable 12,000 7,25,200 7,25,200 Statement of Profit & Loss Particulars $ Particulars $ Cost of goods sold 4,60,000 Sales 9,00,000 Gross Profit c/d 4,40,000 9,00,000 9,00,000 Salary expenses 2,00,000 Gross Profit b/d 4,40,000 Rent expenses 36,000 Office expenses 2,000 Advertising Expense 8,000 Interest expenses 9,600 Insurance expenses 2,400 Utilities expenses 10,000 Depreciation expenses 46,000 Tax expenses 37,000 Net Profit 89,000 4,40,000 4,40,000 Computation of devidend paid $ Retained earnings at the begning of the year 200000 (+) Profit of the year 89000 289000 (-) Retained earnings at the end of the year 280200 Dividend paid in the current year 8800
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