You have been contacted by WWMD Corporation to assist them with the closeout of their year-
end. Their family accountant of 35 years decided that he wanted to start retirement a little early
this year. You are inheriting an adjusted trial balance which needs to be properly presented
into a set of GAAP financials. Here is what we know:
 You can assume that all account balances are accurate.
 This is the first year of operations.
 You will need to record a tax accrual. Assume a flat tax rate of 24%.
 The family accountant left you a love note indicating that the company had
recently issued 100, shares of $10 par value stock in exchange for a tract of
land.
 No footnote disclosures are needed.
 No dividends were paid this year.
 The loss on disposal of asset was the result of an asset being discarded. No
cash proceeds were received on this transaction.
 You can feel free to add any accounts that you deem necessary.
Each financial statement prepared in proper format is worth 5 points.
Your job is to complete the above and create a set of GAAP financial statements 

Cash	185,000.00
Accounts Receivable	715,000.00
Product Sales Revenue		12,000,000
Stockholder Loans Payable		65,000
Inventory-Raw Materials	520,000.00
Inventory-Finished Goods	261,000.00
Land	147,000.00
Building & Improvements	403,000.00
Machinery & Equipment	1,312,000.00
Computer Equipment	16,000.00
Furniture & Fixtures	35,000.00
Transportation Equipment	155,000.00
Accounts Payable		620,000
Allowance for Doubtful Accounts		42,000
Accrued payroll taxes		6,500
Accrued Wages		67,000
Income taxes payable		-
Line of credit		600,000
Current portion of LTD		42,000
Contra current portion of LTD	42,000.00
Common Stock, $10 Par.   100,000 shares authorized.		300,000
Stockholder Loan Receivable	215,000.00
Retained Earnings
Freight Charge Revenue		125,000
Sales Discounts	80,000.00
Outbound Freight	155,000.00
Manufacturing Costs	5,350,000.00
Payroll Wages	2,900,000.00
Payroll Taxes	225,000.00
Freight - Inbound	146,000.00
Waste Disposal	120,000.00
Subcontract Labor	78,000.00
Utilities	166,000.00
Uniform Service Expense	25,892.00
Interest Revenue		20,000
Equipment Rental	45,964.00
Insurance	85,000.00
Health Care Insurance	86,000.00
Trucking Expense	383,000.00
Sales Commissions	180,000.00
Bad Debt Expense	45,000.00
Notes payable		420,001
Bank Service Charges	23,000.00
Loss on disposal of assets	65,000.00
Depreciation Expense	42,000.00
Dues and Subscriptions	3,600.00
8,000 shares of Treasury Stock	45,000.00
Licenses and Permits	13,000.00
Prepaid expenses	25,000.00
Disc Ops - Closure of Plant		260,000
Advertising	17,800.00
Alarm Billing	14,600.00
Prepaid Insurance	12,000.00
Repairs and Maintenance	58,000.00
Telephone	8,000.00
Travel	36,300.00
Payroll Processing	3,300.00
Accumulated Depreciation		42,000
Professional Fees	95,000.00
Supplies expense	35,000.00
6% Preferred Stock, $12 par.		30,000
Property Taxes	52,045.00
Office Supplies	14,000.00
Federal Income Tax	-
	14,639,501.00	14,639,501.00

Answer rating: 100% (QA)

SOLUTION To prepare the GAAP financial statements for WWMD Corporation we will need to organize the provided account balances into the following financial statements 1 Income Statement 2 Statement of ... View the full answer