Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1)prepare an ending 2014 income statement and bala

1)Prepare an ending 2014 Income Statement and Balance Sheet from the following information: Sales $800,000; Cost...

Free

70.2K

Verified Solution

Question

Finance

1)Prepare an ending 2014 Income Statement and Balance Sheet fromthe following information: Sales $800,000; Cost of Goods Sold$300,000; Accounts Receivables $20,000; Bonds Outstanding $160,000;Accounts Payable $20,000; Advertising Expense $1,000;Administrative Expenses $35,000; Interest Expense $24,000;Depreciation Expense $40,000; Dividends Paid $137,000; Rent Expense$5,000; Accruals $20,000; Common Stock $100,000; Retained Earnings$245,000 (Beginning 0f 2014); Cash $20,000; Inventory $45,000; NetFixed Assets $600,000 (Beginning of 2014). (Assume a 40% TaxRate)

Answer & Explanation Solved by verified expert
4.0 Ratings (605 Votes)

Income Sstatement
Sales 800000
Less: Cost of goods sold 300000
Gross Profit 500000
Less: expenses
Advertising expense 1000
Admin expense 35000
Interest expens 24000
Depreciation expenses 40000
Rent expenses 5000
Income before tax 395000
Less: tax @ 40% 158000
After tax Income 237000
Statement of RE:
Beginning balance 245000
Add: Net Income 237000
Sub-total 482000
Less: Dividend 137000
Ending balance of RE 345000
Balance Sheet:
Assets:
Current assets:
Cash 20000
Accounts receivable 20000
Inventory 45000
Total Current assets 85000
Fixed assets 560000 (600000-40000)
Total Assets 645000
Liabilities and Equity:
Liabilities:
Accounts payable 20000
Accruals 20000
Bonds Payable 160000
Total liabilities 200000
Stockholder's equity:
Common Stock 100000
Retained earnings 345000
Total Stockholder's equity 445000
Total Liabilities and Equity 645000

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

1)Prepare an ending 2014 Income Statement and Balance Sheet fromthe following information: Sales $800,000; Cost of Goods Sold$300,000; Accounts Receivables $20,000; Bonds Outstanding $160,000;Accounts Payable $20,000; Advertising Expense $1,000;Administrative Expenses $35,000; Interest Expense $24,000;Depreciation Expense $40,000; Dividends Paid $137,000; Rent Expense$5,000; Accruals $20,000; Common Stock $100,000; Retained Earnings$245,000 (Beginning 0f 2014); Cash $20,000; Inventory $45,000; NetFixed Assets $600,000 (Beginning of 2014). (Assume a 40% TaxRate)

Other questions asked by students

Q

a fast food restaurant sells an average of 113 cheeseburger meals a day, with a standard...

Statistics
Q

Global CO2 concentration is rising rapidly. Which type of plants are more likely to benefit from...

Biology
Q

Given the following vector v:Step 1 of 2: Find a unit vector pointing in the...

Basic Math
Q

1. What is a budget? What is budgetary control? 2. Discuss some of the major...

Accounting
Q

Written Inc has outstanding 600,000 shares of $2 par common stock and 120,000 shares of...

Accounting
Q

Larry recently invested $25,000 (tax basis) in purchasing a limited partnership interest in which he...

Accounting
Q

Forten Company, a merchandiser, recently completed its calendar-year 2013 operations. For the year, (1) all...

Accounting
Q

A new startup clothing company is looking to install an accounting system that helps manage...

Accounting
Q

QUESTION 4 The following table provide information on the call and put option listed Chicago...

Finance
Q

Tanner-UNF Corporation acquired as a long-term investment $240 million of 7% bonds, dated July 1,...

Accounting
Q

Financial Statement Analysis 1. Obtain a copy of the 2009 annual report for a publicly...

Accounting
Q

c finance question finance question Probiem 3.12 (5tatement of Cash Flows)...

Finance