Preparation of income statement and balance sheet

Assignment Help Financial Accounting
Reference no: EM1314234

Preparation of Income statement and Balance Sheet.

Financial Data for 2008

1. Sales for the year, all on account, were $221,632.

2. Cash collected from customers on account, $219,514

3. Purchases of merchandise were $132,500, of which $12,425 had not been paid by the end of the year

4. Operating expenses of the current year, paid in cash, were $57,394.  In addition, $1,575 of such expenses were incurred but not paid by the end of the year.

5. Rent paid in cash during the year was $7,800, of which $6,000 related to 2008, and the remainder to 2009.  This payment is not included in #4 above.

6. Accounts receivable of $1,950 was written off as uncollectible.

7. Beginning accounts payable were paid.

8. A cash dividend of $2,500 was paid to the shareholders during the year.

9. Prepaid rent at 12/31/07 was for January and February of 2008.

10. As a result of the physical inventory, it was determined that inventory on hand at 12/31/08 was $27,500.

11. Based on an aging of the accounts receivable, it was determined that the allowance for bad debts at 12/31/08 should be $1,100.

12. Depreciation expense for the year is $2,700 (classified as an operating expense).

13. The note payable bears simple interest at 8% annually.  Interest for 2008 is due January 3, 2009.

14. Income tax expense is 20% of net income before taxes.  These taxes are payable March 15, 2009.

Reference no: EM1314234

Questions Cloud

Identify and describe the deficiencies in the balance sheet : Identify and describe the deficiencies in the balance sheet prepared by the company's accountant. Include in your answer items that need additional disclosure, either on the face of the statement or in a note. Your answer to this question may be p..
Explain questions on investments and transfer pricing : Explain questions on investments and transfer pricing and capital budgeting and One criticism of the payback method is that it ignores cash flows that occur after the payback point has been reached
Preparation of multi-step income statement : Preparation of Multi-step Income statement - Using the information provided, prepare a multi-step income statement for the year ended December 31, 2009 in proper format including earnings per share disclosure.
Closing entries and statement of retained earnings : Preparation of closing entries and statement of retained earnings - Prepare a Statement of Retained Earnings for the year ended December 31, 2009 in proper format.
Preparation of income statement and balance sheet : Preparation of Income statement and Balance Sheet and  Financial Data for 2008 Based on an aging of the accounts receivable, it was determined that the allowance for bad debts at 12/31/08 should be $1,100.
Computation of net present value and return on investment : Computation of net present value and return on investment and Create a template like the attachment or use the template however just remember to use the numbers given in the assignment
Evaluate internal rate of return method : In the payback method, depreciation is added back to net operating income when computing the net annual cash flows and net present value method and the internal rate of return method can be used as a screening tool in capital budgeting decisions.
Transformation of exponential model functions : Solving the transformation of exponential model functions.
Describe decision making based on npv of capital project : Describe Decision making based on NPV of capital project and calculate the present value of the salary differential for completing the certification pro-gram

Reviews

Write a Review

Financial Accounting Questions & Answers

  Activities of insurance business

Show which of the above activities would be viewed as value-added in the eyes of Prince Insurance's Customers. Give reasons for your answer and explain the value and non value added in the activities of insurance business.

  Evaluate the basic earnings per share

Evaluate the basic earnings per share - Determine basic EPS, Ringemup, Inc. had net income of $473,400 for its fiscal year ended October 31, 2009

  Record the journal entries necessary on crain''s books

Record the journal entries necessary on Crain's books for 2005 assuming that Crain uses the equity method to account for its investment in Downey.

  Purpose statement of net assets

Purpose, in good form, a Statement of Net Assets for Southern State University as of 30 th June, 2012.

  Calculate best-case and worst-case prices

Free Cash Flow (FCF) Forecast based on assumptions for Best and Worst Case Scenarios.Net Present Value (NPV) computation based on Cost of Capital, different Discounting Rates and Terminal Values.

  Company''s book balance of cash

Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31. 2005.

  Computation of par value of stock after split off

How much of the $1,000,000 notes payable should be classified as current in Reeds balance sheet at December, 2007 and Computation of par value of stock after split off

  Evaluate the contribution margin per unit

For each model, evaluate the contribution margin per unit. and For each model, compute the contribution margin per machine-hour.

  Purpose a memo to the president in response

Purpose a memo to the president in response to her request for advice.

  Evaluate the amount of the shortfall

Evaluate the amount of the shortfall

  Evaluate the income statement

Evaluate the income statement

  Evaluate the annual break-even point

Evaluate the annual break-even point, in number of haircuts.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd