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

Grounds for compulsory winding up-liquidation of companies, Grounds for com...

Grounds for compulsory winding up A company may be wound up by the court under s.219 if: 1) The company so resolves by special resolution, 2) Default is made in delivering th

Resolution for voluntary winding up-liquidation of companies, Resolution Fo...

Resolution For Voluntary Winding Up A company may be put into voluntary liquidation: 1) By ordinary resolution: where any period fixed for the duration of the company has ex

Estimate the expected return, Case study Josephine Josephine has jus...

Case study Josephine Josephine has just landed her first job out of graduate school.  She is lucky enough to be working for one of the Big Four, earning $50,000 per year.  S

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

Personal property, Personal Property - Movable property which isn't affixed...

Personal Property - Movable property which isn't affixed to land (REAL PROPERTY). Personal property comprises tangible items likecars, cash and computers and intangible items, like

What is asset acquisition, Asset Acquisition An alternate way of condu...

Asset Acquisition An alternate way of conducting a buyout by purchasing few assets an industry may have inspite of purchasing that organizations stock.

Average firm in the industry, Suppose that the average firm in your company...

Suppose that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. Your company is about as risky as the avera

What are the january cash collections from sales, O'Neill Co. has $298,106 ...

O'Neill Co. has $298,106 in accounts receivable on January 1. Budgeted sales for January are $840,001. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80%

Financial accounting theory, This assessment item may be completed either i...

This assessment item may be completed either individually or in groups of two (2) students.  The group mark on both assessment items will be given to both students.  Please ensure

Estimate cost of equity using market values, Q. Estimate cost of equity usi...

Q. Estimate cost of equity using market values? The cost of equity as well as cost of debt should always be estimated using market values. If the approximate cash flows of a

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