Problem 1.

A. Make 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....................................... see below

Notes payable - short-term......................... 24,200

Notes payable - long-term.......................... 154,000

Common stock........................................... 420,000

Retained earnings....................................... 67,200

Sales revenue............................................. see below

Cost of goods sold..............................................see below

Salary expense....................................................see below

Advertising expense..........................................see below

Depreciation expense........................................see below

Bad debt expense..............................................see below

Other expense....................................................see below