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New Member
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Sep 19, 2007, 08:06 PM
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Prepare a Balance Sheet and Income Statement
My accountant has given me the following list of account balances for Moes Tires as of December 31, 2003:
Acccounts Payable 7,500
Accounts Receivable 10,000
Building 4,000
Cash 2,500
Common Stock 3,000
Cost of Goods Sold 5,000
Depreciation 1,000
Furniture and Fixtures 1,500
Inventory 2,000
Long Term Debt 8,000
Payoll Expenses 2,000
Sales 10,000
Taxes 400
Create a Balance Sheet and Income Statement.
Determine the Retained earnings as of 12/31/03.
Retained Earnings for the prior period was $1,000, determine if divedends were paid and if so, for how much?
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New Member
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Sep 19, 2007, 08:17 PM
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A couple questions for clarification:
*Inventory: Is this the cost for a physical inventory being performed, or is this the total dollar amount of in-stock inventory?
*Common Stock: For dividends paid out to employees, or common stock earnings?
Basically what you need to do is assign each item to one of two catagories: Money In and Money Out.
Add each category. Subtract Money Out from Money In to determine the total Profit or Loss for the period.
Also, what is the formula for determining the dividends paid out?
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New Member
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Nov 27, 2007, 02:38 PM
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Income Statement
Sales $10,000
Less COGS (5,000)
Equals Gross profit $5,000
Less payroll expenses (2,000)
Less depreciation (1,000)
Equals income before taxes $2,000
Less tax (400)
Equals Net income $1,600
Layout of Balance sheet
Cash
A/R
Furniture and fixtures
Inventory
Total current assets
Building
Accumulated depreciation
Total assets
Accounts payable
Long term debt
Total liabilities
Common stock
Retained earnings
Plug in your numbers to get the balance sheet total.
To find change in retained earnings: Net income minus dividends paid
Then add answer to the prior's years retained earnings to get retained earnings.
To find dividends paid: Net Income - Change in Retained earnings
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New Member
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Jan 14, 2010, 05:37 PM
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Income Statement
Sales $10,000
Less COGS (5,000)
Equals Gross profit $5,000
Less payroll expenses (2,000)
Less depreciation (1,000)
Equals income before taxes $2,000
Less tax (400)
Equals Net income $1,600
Layout of Balance sheet
Cash
Accounts Recievable
Furniture and fixtures
Inventory
Total current assets
Building
Accumulated depreciation
Total assets
Accounts payable
Long term debt
Total liabilities
Common stock
Retained earnings
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