One of the key outcomes of our course is to understand financial statements, how
ID: 2568241 • Letter: O
Question
One of the key outcomes of our course is to understand financial statements, how they are structured and what is included in them. Below you will find a list of items that might appear on a balance sheet or income statement. Your assignment is to do the following:
Open the Balance Sheet and Income Statement files
Identify where each item on list below goes on either the balance sheet or income statement.
Insert the item name and the amount in the proper place on the appropriate financial statement.
Make appropriate calculations where needed.
1)I have put an asterisk (*) on each place on the balance sheet and income statement where an item is needed.
2)Some totals are given and that should help you make sure that you have placed items in the correct place and calculated correctly.
3)Gross profit should compute to 30%.
Accumulated Depreciation 30,800
Buildings 110,000
Cash 4,400
Depreciation Expense 11,000
Common Stock 57,200
Purchases, Net 303,600
Inventory, Beginning of year 19,800
Total Stockholder’s Equity 77,000
Net Other income (Expense) (2,200)
Beginning Balance, Retained Earnings 11,000
Dividends 4,400
Accounts Payable 13,200
Corporate Income Tax Expense 4,400
Accounts Receivable 6,600
Telephone Expense 15,400
Costs of Goods Sold 308,000
Machinery and Equipment 26,400
Ending Balance, Retained Earnings 19,800
Mortgage payable 41,800
Revenue 440,000
Wages Expenses 63,800
Advertising Expense 22,000
Inventory, End of Year 15,400
$
ASSETS Current Assets * * * Total Current Assets $ Fixed Assets * * * Net Fixed Assets $ TOTAL ASSETS $ LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities * Total Current Liabilities $ *Long-term Debt TOTAL LIABILITIES $ Stockholders' Equity * * Total Stockholders' Equity $ TOTAL LIABILITIES & EQUITY$
Explanation / Answer
Balance Sheet $ $ Assets Current assets Cash 4400 Accounts receivable 6600 Inventory 15400 Total current assets 26400 Fixed assets Machinery and Equipment 26400 Building 110000 Accumulated depreciation -30800 105600 Total fixed assets 105600 Total assets 132000 Liabilities & stockholders' equity Liabilities Current Liabilities Accounts payable 13200 Total current liabilites 13200 Long-term liabilites Mortgage payable 41800 Total Long-term Liabilities 41800 Stockholders' equity Common stock 57200 Retained earnings 19800 Total stockholders' equity 77000 Total Liabilities & stockholders' equity 132000
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