[jberns214]

As the accountant for Wheatley International, it is your job to prepare the company’s income statement and balance sheet. Use the accounts listed below to construct the statements. Assume that the tax rate is 25%.


List of Accounts for

Wheatley International


Accounts Receivable $120,600

Land 1,100,000

Notes Receivable 71,200

Insurance Expenses 53,400

Accounts Payable 55,000

Interest Expenses 24,600

Common Stock 1,896,000

Net Sales 1,153,000

Inventory 126,600

Notes Payable (Long-term) 210,000

Retained Earnings 1,459,800

Advertising Expense 80,000

Cash 82,000

Salaries expense 180,000

Short-Term Notes Payable 35,600

Cost of goods sold 345,000

Buildings 1,050,000

Rent 13,300

Utilities 10,400

Equipment & Vehicles 1,166,000

Bonds Payable 60,000

[jberns214]

I can't find the revenue on their and I don't have the book on me. Anyone able to help?

[rehmanvohra]

Income Statement
Net Sales 1,153,000
COGS (345,000)
Gross Profit 808,000
Expenses
Salaries expense 180,000
Insurance Expenses 53,400
Rent 13,300
Utilities 10,400
Advertising Expense 80,000
Total expenses 337,100
Operating profit 470,900
Interest Expenses 24,600
Net Income before taxes 446300
Income tax 111,575
Net Income 334,725

Balance Sheet
Assets
Land 1,100,000
Buildings 1,050,000
Equipment & Vehicles 1,166,000
Inventory 126,600
Accounts Receivable $120,600
Notes Receivable 71,200
Cash 82,000
Total assets 3,716,400
Accounts Payable 55,000
Short-Term Notes Payable 35,600
Notes Payable (Long-term) 210,000
Bonds Payable 60,000
Income tax payable 111,575
Common Stock 1,896,000
Retained Earnings 1,794,525
Total liab and equity 4,162,700

There seems to be a difference of $446,300
Please recheck your question and you will find the trial balance is short of debit by 446,300