I have been working on this for a week. Here is the Problem and what I have done.

Prepare a balance sheet
debits credits
cash 197,000
sales 8,100,000
trading securities (at cost, 145,000) 153,000
cost of goods sold 4,800,000
long-term investments, bonds 299,000
long-term investments, stocks 277,000
short-term notes payable 90,000
accounts payable 455,000
selling expenses 2,000,000
investment revenue 63,000
land 260,000
buildings 1,040,000
dividends payable 136,000
accrued liabilities 96,000
accounts receivable 435,000
accum. Deprec. - buildings 152,000
allowance for doubtful accounts 25,000
administrative expenses 900,000
interest expense 211,000
inventories 597,000
extraordinary gain 80,000
long-term notes payable 900,000
equipment 600,000
bonds payable 1,000,000
accum. Deprec. - equipment 60,000
franchise 160,000
common stock ($5 par) 1,000,000
treasury stock 191,000
patent 195,000
retained earnings 78,000
additional paid-in-capital 80,000
totals 12,315,000 12,315,000

Here is what I have done. What am I doing or recording wrong? Please Help!





Current Assets
Cash 197,000
Accounts Receivable 435,000
Less: Allowance for Doubtfull Accts 25,000 410,000
Trading Securities (at cost, 145,000)
At fair market value 153,000
Inventories 597,000
Total Current Assets 1,357,000

Long-Term Assets
Bonds 299,000
Stocks 277,000
Total Long-Term Assets 576,000

Property, Plant, & Equipment
Land 260,000
Buildings 1,040,000
Less: Accum. Deprec.-Buildings 152,000 888,000
Equipment 600,000
Less: Accm. Deprec.-Equipment 60,000 540,000
Total Property, Plant & Equipment 1,688,000

Intangible Assets
Franchise 160,000
Patent 195,000
Total Intangible Assets 355,000
Total Assets 3,976,000


Current Liabilities
Accounts Payable 455,000
Short-Term Notes Payable 90,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Total Current Liabilities 777,000

Long-Term Liabilities
Notes Payable 900,000
Bonds Payable 1,000,000
Total Long-Term Liabilities 1,900,000

Stockholder’s Equity
Common Stock, $5 par value, 1,000,000
200,000 shares
Additional Paid-in-Capital 80,000
Unrealized Gain on Investments 8,000
Retained Earnings 78,000
Less: Treasury Stock (191,000)
Total Stockholder’s Equity 975,000
Total Liabilities & Stockholder’s Equity 3,652,000


I have gone over and over this problem for the last week and cannot put my finger on what I am doing wrong. Please help me out.

Define cash flow and fund flow statement