Using the trial balance on the provided excel workbook for your company Almost Done Corporation, calculate and
Question:
Using the trial balance on the provided excel workbook for your company Almost Done Corporation, calculate and present all 4 of the required financial statements: Balance sheet showing 2011 and 2012 balances, Income statement for 2012, Statement of Stockholders Equity for 2012, and the Statement of Cash Flows for 2012. ADC uses a calendar year end.
Additional information you might need is as follows.
1. You sold some fixed assets on January 1 for a gain of $80,000. The original basis of the assets sold was $4,500,000 and the accumulated depreciation was $1,125,000.
2. During 2011, you acquired a stake in one of your suppliers by investing $1 million in cash in their common stock. This investment gives you 20% of the company and two seats on their board of directors. The investment in Never Finished Corporation was made right at the end of 2011 and during 2012, NFC earned an after tax profit of $800,000. They also distributed a dividend to you of $40,000 in cash and $60,000 of additional stock.
3. You purchased additional fixed assets on June 30 for $750,000 using money you borrowed from the bank.
4. On December 31, 2012, you paid off $2,250,000 of your outstanding bank loans and made sure there was no interest payable balance at the end of the year.
5. You paid dividends to the shareholders during 2012 of $1,000,000.
6. To raise some additional funds, you sold common stock during the year. You sold 500,000 additional shares at an average price of $10 per share. You paid your attorneys and accountants a total of $800,000 for offering assistance.
7. You made income tax payments during the year and your effective tax rate is 40%.
8. You bought some more fixed assets on December 31, 2012 in exchange for a note payable to the seller of the fixed assets for a total purchase price of $2 million.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella