[potus63]

Company Ledger Preparation
12-31
2007 2006

Cash 35,000 32,000
Accounts receivable 33,000 30,000
Allowance for doubtful accounts (1,300) (1,100)
Inventory 31,000 47,000
Property, plant, & equipment 100,000 95,000
Accumulated depreciation (16,500) (15,000)
Trade accounts payable (25,000) (15,500)
Income taxes payable (21,000) (29,100)
Deferred income taxes (5,300) (4,600)
8% callable bonds payable (45,000) (20,000)
Unamortized bond discount 4,500 5,000
Common stock (50,000) (40,000)
Additional paid-in capital (9,100) (7,500)
Retained earnings (25,200) (64,600)
Sales (558,300) (778,700)
Cost of goods sold 250,000 380,000
Selling expenses 141,500 172,000
General and administrative expenses 137,000 151,300
Interest expense 4,300 2,600
Income tax expense 20,400 61,200
$ - $ -



Cash Sales 72,600
Collections on Receivables 477,900
Purchases (219,500)
Purchase of Equipment (5,000)
Wages (150,700)
Payments to Suppliers (126,300)
Tax Payments (27,800)
Borrowing 30,000
Repayment of Debt (5,000)
Interest Payments (3,800)
Sale of Stock 11,600
Dividends (51,000)


Additional information:
1. Company purchased $5,000 in equipment during 2007.
2. Company allocated one-third of its depreciation expense to selling expenses and
The remainder to general and administrative expenses.
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts
Totaled $4,800.

4. $12, 000 of the debt is current portion.

[morgaine300]

Firstly, take a look at the guidelines for posting homework problems:
Ask Me Help Desk - Announcements in Forum : Homework Help

We are not here just to do your homework for you. You should post any attempts you've made and then get guidance from there. Or ask specifically something that you need clarified.

Second, the problem is a bit confusing. In order to prepare a balance sheet, you do not need 2006 figures, unless they want two years on it. (And they would usually either say so in the problem, or that would be the assumption made from the examples in the text.) Also, if that is the ending balances for 2007, I don't understand how half the additional info is necessary. Some of it would be related to adjusting entries, but that list isn't just a bunch of adjusting entries. Like the purchase of equipment during 2007 - well, if it was during 2007 then it should already been in the account balance at the end of 2007.

So some things there don't make much sense to me. You are possibly leaving out some important instructions.

You also can't make a balance sheet unless you've already done the income statement and statement of retained earnings.

There's an overview and some samples statements here:
Principles of Accounting Chapter 4