1 Attachment(s)
My Balance sheet is not balancing
Here is the information that was given: I have to do an income statement, earnings per share (assuming that of the total common stock at the end of the year, 90 shares were sold on September 1, 2008), retained earnings, and classified balance sheet for December 31, 2008, assuming there is a flat 30% tax rate on all items including extraordinary items. I have included all of the items that were given and what I have done. Please help! I have also attached the document in excel of what I have done.
Acct. Payable Credit of $2,866
Acct. Receiv. Debit 2,866
Acc. Depr.-Equip Credit 6,532
Advertising Exp. 1,437
Advances from Customers Credit 850
Allowance for Doubtful Accts. Credit 256
Amortization Expense Debit 100
Available for sale securities Debit 462
Bad Debts Expense Debit 325
Bonds Payable (9%, due December 31, 2013) Credit 10,000
Cash Debit 2,109
Cash Dividend Declared Debit 130
Common Stock, $10 Par, 3000 shares authorized credit 6500
COGS Debit 12,661
Depr. Expense Debit 3,890
Discount on Bonds Payable Debit 300
Equipment Debit 28,613
Income Tax Expense ?
Income Tax Payable ?
Interest Expense debit 950
Interest Payable credit 20
Interest income credit 143
Loss on Sale of Investments Debit 907
Merchandise inventory debit 6,519
Paid in Capital in excess of Par-Common credit 6,120
Plant expansion fund debit 1,100
Prepaid rent debit 200
Retained earnings, January 1 credit 2,154
Rent expense debit 1,900
Sales credit 33,471
Trademark debit 500
Utilities expense debit 1,286
Wages expense debit 4,158
Wages payable credit 156
Here is the income statement that I did:
Income Statement
For the Year Ending December 31, 2008
Net Sales $33,471
COGS ($12,661)
Gross Profit $20,810
OPERATING EXPENSES:
Advertising Expense ($1,437.00)
Amortization Expense ($100.00)
Bad Debts Expense ($325.00)
Depreciation Expense ($3,890.00)
Utiltities Expense ($1,900.00)
Rent Expense ($1,286.00)
Wages Expense ($4,158.00)
TOTAL OPERATING EXPENSES ($13,096.00)
Income from Operations $7,714.00
OTHER REVENUE
Interest Income $143 $143
OTHER EXPENSES
Loss on Sale of Investment ($907.00)
Interest Expense ($950.00)
($1,857.00)
Income Before Income Tax $6,000.00
Income Tax Rate 30%
Income Tax $1,800.00
NET INCOME $4,200.00
Here is the Retained Earnings statement that I did:
Retained Earnings Statement
For the Year Ending December 31, 2008
Beginning Balance Previously
Reported as of January 1 $2,154
Net Income $4,200
Cash Dividends Declared ($130)
ENDING BALANCE: $6,224
Here is the Balance sheet that I did:
ASSETS
Current Assets
Cash $2,109
Accounts Receivables $2,866
Allowance for Doubtful Accounts ($256)
Merchandise Inventory $6,519
Prepaid Rent $200
Total Current Assets $11,438
INVESTMENTS AND FUNDS
Available for Sale Securities $462
Plant Expansion Fund $1,100
Total Investments & Funds $1,562
FIXED ASSETS
Equipment $28,613
Accumulated Depreciation on Equipment ($6,532)
Total Fixed Assets $22,081
INTANGIBLE AND OTHER ASSETS
Trademark $500 $500
TOTAL ASSETS $35,581
LIABILITIES
Current Liabilities
Accounts Payable $4,211
Interest Payable $20
Advances from Customers $850
Wages Payable $156
$5,237
Total Current Liabilities
NON-CURRENT LIABILITIES
Bonds Payable (9%, due December 31, 2013) $10,000
Discount on Bonds Payable ($300)
Total Non-Current Liabilities $9,700
TOTAL LIABILITIES $14,937
STOCKHOLDERS EQUITY
Paid in Capital
Common Stock, $10 Par, 3,000 shares authorized $6,500
Paid in Capital in Excess of Par-Common $6,120
Total Paid in Capital $12,620
Retained Earnings $6,224
TOTAL STOCKHOLDER'S EQUITY $18,844
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $33,781
