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Posted on Jul 12, 2024

for cash flow statement some will come out if the 2018 trail balance 2019 trail balnce: 2018 Trail Balnce: Scenario You are an accountant at

for cash flow statement some will come out if the 2018 trail balance

2019 trail balnce:

2018 Trail Balnce:

Scenario You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint we covered a few of the many possible formulas in discussion posts) Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers. Generally, buyers are most interested in knowing about profits Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 te Income statement Batance Shoet. Statement of Owners Equity/Rutained Earnings, Statement of Cash Flows. 2.) Write a letter to potential buyers, D E F G B Credit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 10300 Savings 10100 Checking 10400. Petty Cash 11000 Accounts Receivable 12000 - Undeposited Funds 12100 Inventory Asset 12800. Employee Advances 13100 - Pre-paid Insurance 13400 - Retainage Receivable 1600 scooter 15000 Fumiture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16900 Land 17000. Accumulated Depreciation 18700 Security Deposits 20000 - Accounts Payable 20500 QuickBooks Credit Card 20600. Call Credit Card 24000 Payroll Liabilities:24010 Federal Withholding 24000 Payroll Liabilities:24020 FICA Payable 24000 Payroll Liabilities:24030 - AEC Payable 24000 Payroll Liabilities:24040. FUTA Payable C Dec 31, 19 Debit 17910 19 35,068.48 755 05 92,707 93 2.440.00 30,683 38 832 00 4 050.00 3,70302 4,000.00 34,326 00 78.936 91 325,000.00 15,300.00 90,000.00 110,344 60 1,720.00 . 15,536 30 150,004 20 38262 136400 2 118 82 0.00 25 26 10000 Trial Balance 2019 Trial Balance 2018 1 Dec 31, 19 Debre Credit 2 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 88%89%%9 24000 Payroll Liabilities:24050. State Withholding 24000 - Payroll Liabilities:24060. SUTA Payable 24000. Payroll Liabilities:24070 - State Disability Payable 24000. Payroll Liabilities:24080 Worker's Compensation 24000 - Payroll Liabilities:24100 Emp. Health Ins Payable 25500. Sales Tax Payable 2600 - Scooter Loan 23000 Loan Vehicles (Van) 23100 - Loan - Vehicles (Utility Truck) 23200 - Loan - Vehicles (Pickup Truck) 28100 Loan - Construction Equipment 28200 - Loan Furniture Office Equip 28700 - Note Payable - Bank of Anycity 28900 Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 - Construction Income:40110 - Design Income 40100 Construction Income:40130 - Labor Income 40100 Construction Income:40140 - Materials income 40100 Construction Income:40150 Subcontracted Labor Income 40100 Construction Income:40199. Less Discounts given 40500 - Reimbursement Income:40520 Permit Reimbursement Income 40500 Reimbursement Income:40530Reimbursed Freight & Delivery 299.19 110.00 48.13 1,214 31 150.00 957,63 4,000.00 10,501 47 19,936 91 22 64100 13,911 32 21,000.00 2,693 21 296,283.00 39,273.75 61,756.76 0.00 36,729 25 208,225.42 119,920.67 82,710,35 48,35 1.223.75 896 05 Tral Balance 2019 Trial Balance 2018 A A B Dec 31. 19 Credit Debit 14,766.19 1.850.00 99,435 90 700.00 63,217 95 51 52 53 54 55 56 57 58 59 60 797 10 201.81 44.95 & 38 39 88 89% SAN 1.588.70 2,850.24 2,406 00 300.00 62 63 64 50100 Cost of Goods Sold 54000. Job Expenses:54200 - Equipment Rental 54000 - Job Expenses:54300. Job Materials 54000. Job Expenses:54400 Permits and Licenses 54000 Job Expenses:54500 Subcontractors 54000 Job Expenses:54520 - Freight & Delivery 54000. Job Expenses:54599. Less Discounts Taken food 60100 - Automobile:60110 - Fuel 60100 Automobile:60120 - Insurance 60100 . Automobile:60130. Repairs and Maintenance 60300 Bad debt 60600 - Bank Service Charges 62100 Insurance:62110 Disability Insurance 62100. Insurance:62120 Liability Insurance 62100. Insurance:62130Work Comp 62400 Interest Expense:62420 Loan Interest 62700. Payroll Expenses:62710 Gross Wages 62700. Payroll Expenses:62720. Payroll Taxes 62700. Payroll Expenses 62730 FUTA Expense 62700 Payroll Expenses:62740 SUTA Expense 63100. Postage 63600 Professional Fees:63610 Accounting 64200 Repairs:64210 Building Repairs 66 67 68 69 70 71 72 73 74 125.00 58206 5,885.96 13,657 07 151,995.65 110,400 10 8.445.61 268.00 1123350 04 20 250 00 175.00 Trial Balance 2019 Thal Balance 2018 D E E F B Dec 31, 19 Debit 1 2 Credit - 64200 - Repairs:64220 . Computer Repairs 64200 - Repairs:64230. Equipment Repairs 64800. Tools and Machinery 65100 - Utilities:65110 - Gas and Electric 65100 - Utilities:65120 - Telephone 65100 Utilities:65230 - Water 70100. Other Income 70200. Interest Income TOTAL 0.00 1,350,00 2,820.68 1.164 16 841 15 264.00 146.80 229.16 L225,000.48 4,225,000.48 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 Trial Balance 2019 Trial Balance 2018 A BU D E a Dec 31, 18 Debit 15,881.03 36,810.16 Meredit 3 500.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 10300 Savings 10100 Checking 10400 - Petty Cash 11000 Accounts Receivable 12000 . Undeposited Funds 12100 - Inventory Asset 12800. Employee Advances 13100 - Pre-paid Insurance 13400 - Retainage Receivable 15000 - Furniture and Equipment 15100 Vehicles 15200 - Buildings and Improvements 15300 - Construction Equipment 16900 Land 21,249.39 18,252.08 12.767.04 770.00 4,943 02 1,796.72 22,826.00 78,936.91 325,000.00 15,300.00 90,000.00 110,344.60 1,720.00 osch 13,100.00 0.00 17000 Accumulated Depreciation 18700 - Security Deposits 20000 - Accounts Payable 20500 QuickBooks Credit Card 20600 - CalOil Credit Card 24000. Payroll Liabilities:24010 - Federal Withholding 24000. Payroll Liabilities:24020 - FICA Payable 24000. Payroll Liabilities:24040 - FUTA Payable 24000. Payroll Liabilities:24050 - State Withholding 24000. Payroll Liabilities:24060 - SUTA Payable 530.00 0.00 0.00 0.00 0.00 0.00 Enal Balance 2019 Trial Balance 2018 B Dec 31. 18 Debit Credit 1 2 0.00 0.00 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 24000 - Payroll Liabilities:24070 - State Disability Payable 24000 - Payroll Liabilities:24080. Worker's Compensation 25500. Sales Tax Payable 23000 Loan - Vehicles (Van) 23100 Loan - Vehicles (Utility Truck) 23200 - Loan - Vehicles (Pickup Truck) 28100 Loan - Construction Equipment 28200. Loan - Furniture Office Equip 28700 - Note Payable - Bank of Anycity 28900. Mortgage - Office Building 30100 - Capital Stock 32000. Retained Earnings 40100 Construction Income:40110 Design Income 40100 Construction Income:40130 - Labor Income 40100 Construction Income:40140 - Materials Income 40100 - Construction Income:40150 Subcontracted Labor Income 40500 - Reimbursement Income:40520 Permit Reimbursement Income 50100 Cost of Goods Sold 54000 Job Expenses:54300 Job Materials 54000 Job Expenses:54400. Permits and Licenses 54000 Job Expenses:54500 Subcontractors 60100 - Automobile:60110 - Fuel 60100 . Automobile:60120. Insurance 60100 Automobile:60130 Repairs and Maintenance 72 18 16.290.52 19,936.91 22,641.00 14,343 11 21,000 00 31 180.52 296.283.00 39,273.75 36,213 97 3,400.00 16,335.00 36,023.77 112,656 50 835.00 5.620.96 12 171 60 225,00 53,350.00 1.715.00 2.850 24 2,550.00 Thal Balance 2019 Tral Balance 2018 D E E A B Dec 31, 18 Debit credit 150.00 44,435.91 600.00 5,092.98 3,300.00 4,705.48 250.00 & 8 8 3 9 88% 983N 714.00 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 60600 - Bank Service Charges 60900 Depreciation Expense 62100 Insurance:62110 - Disability Insurance 62100. Insurance:62120 Liability Insurance 62100. Insurance:62130. Work Comp 62400 - Interest Expense:62420 Loan Interest 63600 Professional Fees:63610 Accounting 64200 Repairs:64220 - Computer Repairs 64200. Repairs:64230. Equipment Repairs 64800 - Tools and Machinery 65100 Utilities:65110 - Gas and Electric 65100 - Utilities:65120 - Telephone 65100. Utilities:65130 - Water 70200 - Interest Income TOTAL 1,800.00 1,457 91 1,841.43 880.00 288.00 281 03 290.750.86 '90,750.86 Trial Balance 2019 Trial Balance 2018 Scenario You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint we covered a few of the many possible formulas in discussion posts) Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers. Generally, buyers are most interested in knowing about profits Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 te Income statement Batance Shoet. Statement of Owners Equity/Rutained Earnings, Statement of Cash Flows. 2.) Write a letter to potential buyers, D E F G B Credit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 10300 Savings 10100 Checking 10400. Petty Cash 11000 Accounts Receivable 12000 - Undeposited Funds 12100 Inventory Asset 12800. Employee Advances 13100 - Pre-paid Insurance 13400 - Retainage Receivable 1600 scooter 15000 Fumiture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16900 Land 17000. Accumulated Depreciation 18700 Security Deposits 20000 - Accounts Payable 20500 QuickBooks Credit Card 20600. Call Credit Card 24000 Payroll Liabilities:24010 Federal Withholding 24000 Payroll Liabilities:24020 FICA Payable 24000 Payroll Liabilities:24030 - AEC Payable 24000 Payroll Liabilities:24040. FUTA Payable C Dec 31, 19 Debit 17910 19 35,068.48 755 05 92,707 93 2.440.00 30,683 38 832 00 4 050.00 3,70302 4,000.00 34,326 00 78.936 91 325,000.00 15,300.00 90,000.00 110,344 60 1,720.00 . 15,536 30 150,004 20 38262 136400 2 118 82 0.00 25 26 10000 Trial Balance 2019 Trial Balance 2018 1 Dec 31, 19 Debre Credit 2 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 88%89%%9 24000 Payroll Liabilities:24050. State Withholding 24000 - Payroll Liabilities:24060. SUTA Payable 24000. Payroll Liabilities:24070 - State Disability Payable 24000. Payroll Liabilities:24080 Worker's Compensation 24000 - Payroll Liabilities:24100 Emp. Health Ins Payable 25500. Sales Tax Payable 2600 - Scooter Loan 23000 Loan Vehicles (Van) 23100 - Loan - Vehicles (Utility Truck) 23200 - Loan - Vehicles (Pickup Truck) 28100 Loan - Construction Equipment 28200 - Loan Furniture Office Equip 28700 - Note Payable - Bank of Anycity 28900 Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 - Construction Income:40110 - Design Income 40100 Construction Income:40130 - Labor Income 40100 Construction Income:40140 - Materials income 40100 Construction Income:40150 Subcontracted Labor Income 40100 Construction Income:40199. Less Discounts given 40500 - Reimbursement Income:40520 Permit Reimbursement Income 40500 Reimbursement Income:40530Reimbursed Freight & Delivery 299.19 110.00 48.13 1,214 31 150.00 957,63 4,000.00 10,501 47 19,936 91 22 64100 13,911 32 21,000.00 2,693 21 296,283.00 39,273.75 61,756.76 0.00 36,729 25 208,225.42 119,920.67 82,710,35 48,35 1.223.75 896 05 Tral Balance 2019 Trial Balance 2018 A A B Dec 31. 19 Credit Debit 14,766.19 1.850.00 99,435 90 700.00 63,217 95 51 52 53 54 55 56 57 58 59 60 797 10 201.81 44.95 & 38 39 88 89% SAN 1.588.70 2,850.24 2,406 00 300.00 62 63 64 50100 Cost of Goods Sold 54000. Job Expenses:54200 - Equipment Rental 54000 - Job Expenses:54300. Job Materials 54000. Job Expenses:54400 Permits and Licenses 54000 Job Expenses:54500 Subcontractors 54000 Job Expenses:54520 - Freight & Delivery 54000. Job Expenses:54599. Less Discounts Taken food 60100 - Automobile:60110 - Fuel 60100 Automobile:60120 - Insurance 60100 . Automobile:60130. Repairs and Maintenance 60300 Bad debt 60600 - Bank Service Charges 62100 Insurance:62110 Disability Insurance 62100. Insurance:62120 Liability Insurance 62100. Insurance:62130Work Comp 62400 Interest Expense:62420 Loan Interest 62700. Payroll Expenses:62710 Gross Wages 62700. Payroll Expenses:62720. Payroll Taxes 62700. Payroll Expenses 62730 FUTA Expense 62700 Payroll Expenses:62740 SUTA Expense 63100. Postage 63600 Professional Fees:63610 Accounting 64200 Repairs:64210 Building Repairs 66 67 68 69 70 71 72 73 74 125.00 58206 5,885.96 13,657 07 151,995.65 110,400 10 8.445.61 268.00 1123350 04 20 250 00 175.00 Trial Balance 2019 Thal Balance 2018 D E E F B Dec 31, 19 Debit 1 2 Credit - 64200 - Repairs:64220 . Computer Repairs 64200 - Repairs:64230. Equipment Repairs 64800. Tools and Machinery 65100 - Utilities:65110 - Gas and Electric 65100 - Utilities:65120 - Telephone 65100 Utilities:65230 - Water 70100. Other Income 70200. Interest Income TOTAL 0.00 1,350,00 2,820.68 1.164 16 841 15 264.00 146.80 229.16 L225,000.48 4,225,000.48 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 Trial Balance 2019 Trial Balance 2018 A BU D E a Dec 31, 18 Debit 15,881.03 36,810.16 Meredit 3 500.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 10300 Savings 10100 Checking 10400 - Petty Cash 11000 Accounts Receivable 12000 . Undeposited Funds 12100 - Inventory Asset 12800. Employee Advances 13100 - Pre-paid Insurance 13400 - Retainage Receivable 15000 - Furniture and Equipment 15100 Vehicles 15200 - Buildings and Improvements 15300 - Construction Equipment 16900 Land 21,249.39 18,252.08 12.767.04 770.00 4,943 02 1,796.72 22,826.00 78,936.91 325,000.00 15,300.00 90,000.00 110,344.60 1,720.00 osch 13,100.00 0.00 17000 Accumulated Depreciation 18700 - Security Deposits 20000 - Accounts Payable 20500 QuickBooks Credit Card 20600 - CalOil Credit Card 24000. Payroll Liabilities:24010 - Federal Withholding 24000. Payroll Liabilities:24020 - FICA Payable 24000. Payroll Liabilities:24040 - FUTA Payable 24000. Payroll Liabilities:24050 - State Withholding 24000. Payroll Liabilities:24060 - SUTA Payable 530.00 0.00 0.00 0.00 0.00 0.00 Enal Balance 2019 Trial Balance 2018 B Dec 31. 18 Debit Credit 1 2 0.00 0.00 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 24000 - Payroll Liabilities:24070 - State Disability Payable 24000 - Payroll Liabilities:24080. Worker's Compensation 25500. Sales Tax Payable 23000 Loan - Vehicles (Van) 23100 Loan - Vehicles (Utility Truck) 23200 - Loan - Vehicles (Pickup Truck) 28100 Loan - Construction Equipment 28200. Loan - Furniture Office Equip 28700 - Note Payable - Bank of Anycity 28900. Mortgage - Office Building 30100 - Capital Stock 32000. Retained Earnings 40100 Construction Income:40110 Design Income 40100 Construction Income:40130 - Labor Income 40100 Construction Income:40140 - Materials Income 40100 - Construction Income:40150 Subcontracted Labor Income 40500 - Reimbursement Income:40520 Permit Reimbursement Income 50100 Cost of Goods Sold 54000 Job Expenses:54300 Job Materials 54000 Job Expenses:54400. Permits and Licenses 54000 Job Expenses:54500 Subcontractors 60100 - Automobile:60110 - Fuel 60100 . Automobile:60120. Insurance 60100 Automobile:60130 Repairs and Maintenance 72 18 16.290.52 19,936.91 22,641.00 14,343 11 21,000 00 31 180.52 296.283.00 39,273.75 36,213 97 3,400.00 16,335.00 36,023.77 112,656 50 835.00 5.620.96 12 171 60 225,00 53,350.00 1.715.00 2.850 24 2,550.00 Thal Balance 2019 Tral Balance 2018 D E E A B Dec 31, 18 Debit credit 150.00 44,435.91 600.00 5,092.98 3,300.00 4,705.48 250.00 & 8 8 3 9 88% 983N 714.00 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 60600 - Bank Service Charges 60900 Depreciation Expense 62100 Insurance:62110 - Disability Insurance 62100. Insurance:62120 Liability Insurance 62100. Insurance:62130. Work Comp 62400 - Interest Expense:62420 Loan Interest 63600 Professional Fees:63610 Accounting 64200 Repairs:64220 - Computer Repairs 64200. Repairs:64230. Equipment Repairs 64800 - Tools and Machinery 65100 Utilities:65110 - Gas and Electric 65100 - Utilities:65120 - Telephone 65100. Utilities:65130 - Water 70200 - Interest Income TOTAL 1,800.00 1,457 91 1,841.43 880.00 288.00 281 03 290.750.86 '90,750.86 Trial Balance 2019 Trial Balance 2018