How to make income statement and balance sheet

Assignment Help Financial Accounting

Reference no: EM13497172

Below find the trial balance for Nybrostrand Company. Prepare an income statement and balance sheet in good format. After you have completed the two statements comment on the success of the company. Support your answer with information from the financial statements you just prepared.

Nybrostrand Company
31-Dec-11
Trial Balance (accounts in alphabetical order)
	Debit	Credit
Accounts payable		$ 78,000
Accounts receivable	$ 36,500
Cash	16,700
Common stock		10,000
Depreciation expense	24,350
Cost of goods sold	317,000
Equipment (net of depreciation)	395,000
Insurance	1,400
Inventory	34,000
Long-term debt		127,000
Marketing	4,500
Paid-in capital		50,000
Property taxes	16,900
Rent	28,000
Retained earnings		?
Revenues		586,000
Salaries	78,500
Utilities	6,700

Total	959,550	851,000

The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.

We are using the same company as in the first module. However, you need to consider some additional information.

One client had indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.
The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2011 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.

Nybrostrand Company
31-Dec-11

Trial Balance (accounts in alphabetical order)
	Debit	Credit
Accounts payable		78,000
Accounts receivable	36,500
Cash	16,700
Common stock		10,000
Depreciation expense	24,350
Cost of goods sold	317,000
Equipment (net of depreciation)	395,000
Insurance	1,400
Inventory	34,000
Long-term debt		127,000
Marketing	4,500
Paid-in capital		50,000
Property taxes	16,900
Rent	28,000
Retained earnings		?
Revenues		586,000
Salaries	78,500
Utilities	6,700

Total	959,550	851,000

Prepare an income statement for the company in good format. Always include the name of the company and the priod covered in the title. Don't forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.

The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.

Reference no: EM13497172

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