Question
Amy's Cleaning Services has been operating for 5 years. At December 31 of last year, the accounting records reflected the following: Assets Amount Liabilities &
Amy's Cleaning Services has been operating for 5 years. At December 31 of last year, the accounting records reflected the following:
Assets | Amount | Liabilities & Equity | Amount |
Cash | $ 35,000 | Accounts Payable | $ 20,000 |
Marketable Securities | 15,000 | Notes Payable (Short-Term) | 25,000 |
Accounts Receivable | 20,000 | Long Term Notes Payable | 60,000 |
Equipment | 100,000 | Common Stock | 20,000 |
Factory | 80,000 | Additional Paid in Capital | 35,000 |
Intangibles | 10,000 | Retained Earnings | 100,000 |
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Total Assets | $260,000 | Total Liabilities & Equity | $260,000 |
During the current year, the company had the following summarized activities:
Purchased furniture for $7,000 cash.
Purchase supplies on account for $3,000.
Purchased equipment that cost a total of $29,000; paid $1,000 cash and signed a one-year note for the balance.
Hired a new president at the end of the year. The contract was for $75,000 per year plus options to purchase company stock at a set price based on company performance.
Issued additional shares of common stock for $25,000 cash and $10,000 in equipment.
Purchased a new vehicle for $48,000 by putting down $5,000 cash and obtained a 5 year note payable from a local bank.
Purchased Land for $20,000 cash.
Performed Services for a customer and received $52,500 cash.
Built an addition to the factory for a total cost of $95,000; paid $5,000 in cash and signed a three-year note for the balance.
Performed services for a customer on account for $42,600.
Paid $10,500 on account.
Received $45,900 from a customer on account.
Paid expenses: Rent-$4,500, Advertising-$2,000 and Salaries-$7,000
Paid dividends $5,000.
Need Guidance on: (If possible please provide where the numbers are coming from and or how to calculate revenue, net income, etc)
Prepare a Balance Sheet as of December 31, of the current year.
Analyze the financial status of the company over this last year. (Dont forget to use ratios.)
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