Prepare the income statement and balance sheet, Financial Accounting

Assignment Help:

Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011.  Previous period's information were as follows: net receivables, $290,000 and inventory, $82,000.  Total revenues were $350,000 for 2010, 360,000 for 2009, and 295,000 for 2008.

Requirements:

1)  Prepare the income statement, statement of retained earnings, and balance sheet.

2) Calculate the following ratios: current ratio, quick ratio, debt ratio, accounts receivable turnover, and inventory turnover.  Briefly explain your answers.

3)  Calculate the vertical analysis for total current assets.

4)  Calculate the horizontal analysis on total revenues from 2008 thru 2011.

Cash                                                                        198,000

Accounts receivable                                                    300,000

Inventories                                                                 78,000

Prepaid insurance expense                                            4,000

Supplies                                                                      2,000

Furnitures                                                                 100,000

Accumulated depreciation, furnitures                              60,000

Building                                                                      250,000

Accumulated depreciation, building                                140,000

Accounts payable                                                        310,000

Salaries payable                                                           5,000

Unearned service revenue                                           13,000

Notes payable ($12,000 due in the current year)            40,000

Mortgage payable (1/3 is due in the current year)          30,000

Retained earnings                                                    293,000

Dividends                                                                   65000

Service revenue                                                           300,000

Professional fees revenue                                            30,000

Salary expense                                                            170,000

Supplies expense                                                         4,000

Depreciation expense, furnitures                                20,000

Depreciation expense, building                                   11,000

Rent expense                                                               9,000

Interest expense                                                          7,000

Utilities expense                                                          3,000


Related Discussions:- Prepare the income statement and balance sheet

Maximum cost recovery deduction, In May of 2010 a calendar year taxpayer, p...

In May of 2010 a calendar year taxpayer, placed in service $2,137,000 of USED 15-year recovery property. The taxpayer has taxable income of $1,175,000 before the cost recover

Concepts in accounting, Mr. Inherits 30000. Decides to open a salon jj salo...

Mr. Inherits 30000. Decides to open a salon jj salon. On 1/4/2016 commits 10000 to the business Opens an a/c in the bank What will be the money under capital in his books on 1/4/10

Present value.., natasha kingrey to calculate present value of salary diffe...

natasha kingrey to calculate present value of salary differential for completing mba

Prospective financial information, Prospective Financial Information (forec...

Prospective Financial Information (forecast and projection) - Forecast: Prospective financial statements which present, to the best of responsible party's knowledge and belief, an

Specific accounting and related issues , Joe seeks your assistance in asses...

Joe seeks your assistance in assessing these investment options. He has five particular concerns, as outlined below. 1. Regarding his photographic studio, which would be a bette

Bill Receivable, What is the function of bill receivable? What is the meani...

What is the function of bill receivable? What is the meaning of bill receivable?

Goodwynn & wolf incorporated, Nine years ago, Goodwynn& Wolf Incorporated s...

Nine years ago, Goodwynn& Wolf Incorporated sold a 16-year bond issue with a 11% yearly coupon rate and a 10% call premium. Today, G&W known as the bonds. The bonds originally were

Assembly of financial statements, Q. Assembly of Financial Statements? ...

Q. Assembly of Financial Statements? Assembly of Financial Statements -Providing of various accounting or data-processingservices by an accountant, output of which is in the fo

Stock valuation, D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow contin...

D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow continually at rate of 3% per year stating from year 5 onward.assuming the required rate of return to this stock is 12%.what wil

Items reducing the deficit-liquidation of companies, Items reducing the def...

Items reducing the deficit: Items reducing the deficit would include: (a)    Profits from trading; (b)    Estimated profit on the realisation of assets. Notes: (a) Whe

Write Your Message!

Captcha
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