Managerial Accounting Practice Module

Constructing Financial Statements from Account Data Barth Company reports the following year-end account balances at December 31, 201 1. Prepare the 2011 income statement and the balance sheet as of December 31, 2011. Accounts payable $ 4,000 Inventory 3; 9,000 Accounts receivable 7,500 Land 20,000 Bonds payable, longterm 50,000 Goodwlll 2,000 Buildings 37,750 Retained earnings 15,000 Cash 12,000 Sales revenue 100,000 Common stock 37,500 Supplies inventory 750 Cost of goods sold 45,000 Supplies expense 1,500 Equipment 17,500 Wages expense 10,000 Barth Company Income Statement For Year Ended December 31, 2011 0 en Expenses 0 0 0 Total expenses Net income $ Barth Company Balance Sheet December 31, 2011 Assets Cash $ Liabilities and equlty 6 iii A A V v Total current assets Total liabilities A A V v A A V V 3 Total equity Total liabilities and equity Total assets 51: $ ' 4 Identifying and Classifying Balance Sheet and Income Statement Accounts Following are selected accounts for Procter & Gamble. (a) Indicate whether each account appears on the balance sheet (B) or income statement [I]. ($ millions) Classification Sales $43,373 Accumulated depreciation ' 0,438 Depreciation expense 1,703 Retained earnings ' 1,686 Netincome 5,186 Property, plant &equipment, net '3,104 9 Accounts receivable 3,038 Selling, general & administrative expense ' 3,009 Total liabilities 27,520 Stockholders' equity ' 6,186 6 (b) Using the data, compute total assets and total expenses. Total Assets = $ Total Expenses = $ Determining Missing Information Using the Accounting Equation Use your knowledge of accounting relations to complete the following table for Boatsman Company. 2012 2011 Beginning retained earnings $ $90,123 Net income (loss) 48,192 Dividends 15,060 0 Ending retained earnings 123,588