Question: A. Prepare an income statement (multiple step), balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co.
A. Prepare an income statement (multiple step), balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co. presented below.
Balance sheet: December 31
2015
Cash.......................................................... $52,000
Accounts receivable (net)........................... 64,000
Inventory.................................................. 178,000
Land.......................................................... 78,800
Equipment................................................. 504,000
TOTAL............................................ $876,800
Accumulated depreciation.......................... $94,000
Accounts payable....................................... 50,400
Notes payable - short-term........................ 67,200
Notes payable - long-term.......................... 178,000
Common stock........................................... 420,000
Retained earnings...................................... 67,200
TOTAL............................................ $876,800
Trial balance
December 31, 2016
................................................................. DR CR
Cash.......................................................... $60,000
Accounts receivable (net)........................... 75,000
Allowance for doubtful accounts..4,500
Inventory.................................................. 148,000
Land.......................................................... 58,800
Equipment................................................. 620,000
Accumulated depreciation.......................... 40,000
Accounts payable....................................... 48,700
Notes payable - short-term........................ 24,200
Notes payable - long-term.......................... 154,000
Common stock........................................... 420,000
Retained earnings...................................... 67,200
Sales revenue............................................ 630,500
Cost of goods sold.285,000
Salary expense.95000
Advertising expense14,600
Depreciation expense.10,000
Bad debt expense.2,500
Other expense.20,000
Additional data for 2016:
1. Land was sold at its original cost.
2. Equipment was purchased
3. Notes were repaid
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