Balance Sheet -Smith Company
31-Dec-12
Assets
Cash 169,700
Accounts Receivable 24,500
Inventory 60,500
Current Assets 254,700
Equipment 425,000
Land 400,000
Total Assets 1,079,700
Liabilities
Accounts Payable 67,000
Long Term Debt 495,000
Total Liabilities 562,000
Shareholders' Equity
Common Stock 235,000
Paid In Capital 90,000
Retained Earnings 108,550
Total Equity 433,550
995,550
Total Equity & Liabilities
Assets do not equal total Equity
and Liabilities
Financial Accounting - Balance Sheet - Module 3
We’re continuing to analyze the same company as in modules 1 and 2.
Additional information added in module 2:
• One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the purchase.
• The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2012 and did not adjust ending inventory for the $35,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 3:
• The company made a secondary offering of stock and raised an additional $225,000.
• The company had already paid $22,000 in dividends before deciding on the offering.
• The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $50,000 and a note to the bank covers the rest.
Smith Company
31-Dec-12
Trial Balance (accounts in alphabetical order)
Debit Credit
Accounts payable 67,000
Accounts receivable 24,500
Cash 16,700
Common stock 10,000
Depreciation expense 24,350
Cost of goods sold 254,000
Equipment (net of depreciation) 425,000
Insurance 1,400
Inventory 25,000
Long-term debt 145,000
Marketing 4,500
Paid-in capital 90,000
Property taxes 8,900
Rent 18,000
Retained earnings
Revenues 456,000
Salaries 67,500
Utilities 6,700
Total 876,550 768,000
Required
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.
31-Dec-12
Assets
Cash 169,700
Accounts Receivable 24,500
Inventory 60,500
Current Assets 254,700
Equipment 425,000
Land 400,000
Total Assets 1,079,700
Liabilities
Accounts Payable 67,000
Long Term Debt 495,000
Total Liabilities 562,000
Shareholders' Equity
Common Stock 235,000
Paid In Capital 90,000
Retained Earnings 108,550
Total Equity 433,550
995,550
Total Equity & Liabilities
Assets do not equal total Equity
and Liabilities
Financial Accounting - Balance Sheet - Module 3
We’re continuing to analyze the same company as in modules 1 and 2.
Additional information added in module 2:
• One client had indicated that they were interested in purchasing $35,500 worth of products. However, the client has not actually committed to the purchase.
• The bookkeeper may have made a mistake when computing cost of good sold. She included total production costs for 2012 and did not adjust ending inventory for the $35,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 3:
• The company made a secondary offering of stock and raised an additional $225,000.
• The company had already paid $22,000 in dividends before deciding on the offering.
• The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $50,000 and a note to the bank covers the rest.
Smith Company
31-Dec-12
Trial Balance (accounts in alphabetical order)
Debit Credit
Accounts payable 67,000
Accounts receivable 24,500
Cash 16,700
Common stock 10,000
Depreciation expense 24,350
Cost of goods sold 254,000
Equipment (net of depreciation) 425,000
Insurance 1,400
Inventory 25,000
Long-term debt 145,000
Marketing 4,500
Paid-in capital 90,000
Property taxes 8,900
Rent 18,000
Retained earnings
Revenues 456,000
Salaries 67,500
Utilities 6,700
Total 876,550 768,000
Required
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.
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