Klinger Corporation’s balance sheet at December 31, 2013, is presented below. KL

Question

Klinger Corporation’s balance sheet at December 31, 2013, is presented below.

KLINGER CORPORATION
Balance Sheet
December 31, 2013

During 2014, the following transactions occurred.

Adjustment data:

The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Prepare a balance sheet.

KLINGER CORPORATION
Balance Sheet
December 31, 2013

Cash $25,720 Accounts payable $25,740 Accounts receivable 45,580 Common stock ($10 par) 81,600 Allowance for doubtful accounts (1,570 ) Retained earnings 137,120 Supplies 4,590 Land 43,640 Buildings 149,000 Accumulated depreciation—buildings (22,500 ) $244,460 $244,460

Explanation / Answer

Working Trans. No Assets = Liabilities Stockholder equity Income Expenses Paticulars Amt Paticulars Amt Paticulars Amt Paticulars Amt Paticulars Amt 1 Cash 76500 8% Preferrence Stock 75000 paid in capital in excess of par 1500 2 Cash 24700 Common stock 820*10 8200 paid in capital in excess of par- Comon Stock (24700-8200) 16500 3 Accounts Receivable 329000 sales 329000 4 Cash 37200 Unearned Revenue 37200 5 Cash 279000 Accounts Receivable -279000 6 Supplies 35700 Accounts Payable 35700 7 Cash -32000 Accounts Payable -32000 8 Cash (400*26) -10400 Treasury Stock -10400 9 Cash -187900 Operating Expenses 187900 10 Dividend Payable (1500*50*8%)+((8160+820-400)*1) 14580 Retained Earnings -14580 11 Accounts Receivable -1700 Allowance for Doubtfuldebts -1700 12 Supplies (35700-5700) and 4590 -34590 Supplies Expenses 34590 13 Unearned Revenue -37200 Sales 37200 14 Allowance for Doubtful Debts 3530 Bad Debt Expense (3400-(1570-1700) 3530 15 Accumulated Depreciation -4500 Depreciation Expense (149000-14000)/30 4500 Income Before taxes 135680 Income Tax (30%) 40704 Income after Tax 94976 Balance Sheet Cash 212820 Accounts receivable 93,880 Allowance for doubtful accounts -3400 90,480 Supplies 5700 Land 43,640 Buildings 149,000 Accumulated depreciation—buildings -27000 122,000 474640 Liabilities Current Libailities Accounts payable $29,440 Dividend Payable $14,580 Income Tax Payable $40,704 Stockholder equity Common stock ($10 par) 89,800 Preferred Stock 75,000 paid in capital in excess of par- Comon Stock 16500 paid in capital in excess of par=Preferred Stock 1,500 Retained earnings (137120-14580+94976) 217516 Treasury stock -10400 Stockholder Equity 389,916 Total $474,640

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