Ask Experts Questions for FREE Help !
Ask
    adj63's Avatar
    adj63 Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 19, 2007, 08:06 PM
    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?
    Ygramul's Avatar
    Ygramul Posts: 18, Reputation: 5
    New Member
     
    #2

    Sep 19, 2007, 08:17 PM
    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?
    Peaceofgod04's Avatar
    Peaceofgod04 Posts: 1, Reputation: 1
    New Member
     
    #3

    Nov 27, 2007, 02:38 PM
    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
    kuzzy92's Avatar
    kuzzy92 Posts: 1, Reputation: 1
    New Member
     
    #4

    Jan 14, 2010, 05:37 PM
    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

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Multi-Step Income Statement & Classified Balance Sheet Help! [ 1 Answers ]

Hi I'm new in studying accounting. I have quiz coming up tomorrow and I was wondering how I set up a Certified balance sheet and a multi-step income statement. The example we received was this. On may 1st, 2006 Jane Win began the Jane Win Co. which owns a business selling gift items. She ivested...

Income statement, owners equity statement and balance sheet [ 6 Answers ]

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases………………... E250,000 Freight In……………… E8,000 Sales discounts…………. 4,000 Purchase returns…….. 7,000 Inventory Sales…………………. ...

Balance Sheet/Income Statement Questions [ 2 Answers ]

My assignment includes writing up both a balance sheet and income statement given the trial balance. I've completed most of it, but I'm a bit unsure on a few things... 1) Allowance for Bad Debts. - Am I to consider this a current asset? 2) Patents. - Most likely long-term asset? Also, I'm...

Income statement and balance sheet [ 4 Answers ]

Help please here the question. 1. Study the following financial year accounts of Brakers Ltd and answer the following questions. Items on the income statement on 28 February 1985 Administration and sales expense 50 000 Interest paid 7 500 Gross income 157 500 Income before tax 100 000

Interlocking Balance Sheet and Income Statement [ 1 Answers ]

I'm starting a company and have prepared a four-year proforma statement of income. Now I need to prepare proforma balance sheets and statements of cash flow. I know that current retained earnings less previous retained earnings from the balance sheet equal current net income from the income...


View more questions Search