I have tried to give you the entire problem. I have done phase 1 of the problem and attached it for your view. How do I determine which financial statement notes to add to my signature project phase 2, Part 3? I have tried to start writing some, but I have no idea if I am heading in the correct direction or not? Please assist me with this.
BOB'S BACON HOUSE, INC. BALANCE SHEET December 31, 2020 Customer deposits 375 Income taxes payable 24,647 Assets Notes payable to banks (@2%) 26,000 Current assets $ 576,010 395,072 Cash Total current liabilities Long-term debt Accounts receivable 191,816 Mortgage payable 667,200 Less: Allowance for doubtful accounts 3,836 187,980 Twenty-year 3% bonds due January 1, 2040 600,000 1,267,200 Notes receivable 16,000 Total liabilities 1,662,272 Inventories 206,350 986.340 Stockholders' equity Total current assets Long-term investments Common stock 544,850 95,630 Long-term investments in Warren Co. Property, plant, and equipment Additional paid-in capital 40,000 584,850 Building and equipment 1,000,000 Retained earnings 297,383 Less: Accumulated depreciation 381,000 619,000 Total stockholders' equity 882,233 Land 125,000 Total liabilities and stockholders' equity 2,544.505 744,000 Total property, plant, and equipment Intangible assets Copyrights 112,000 Goodwill 225,000 End of document I Patents 219,335 Trademarks 115,000 671,335 Other assets Deposits with vendors 47,200 47,200 Total assets 2,544,505 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 344,050 BOB'S BACON HOUSE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Sales Sales revenue Cost of goods sold Gross profit 1,776,816 1,376,900 399,916 Operating Expense Selling expenses Selling and administrative expenses Bad debts expense Depreciation expense 72,475 3,836 56,000 132,311 267,605 Income from operations Other revenues and gains Rent revenue 25,650 293,255 17,415 275,840 Other expenses and losses Interest on bonds and notes Income from continuing operations Discontinued operations Loss on disposition of store Income before income tax Income tax Net income 35,800 240,040 90,500 149,540 Part-3-Disclosure notes Accounting Policies --The-accounting policies section provides information on the accounting: policies adopted by the management-in preparing the financial statements. -Disclosing the accounting policies helps users interpret-and-understand the financial statements better. I Inventory.valuation-Bob's-Bacon House, Inc. uses periodic inventory system andLIFO. costing method. Depreciation of Assets - Straightline depreciation used Events -like-thesale-of-division --Bob's Bacon-House-Inc. was operating a retail store in: Chicago. Original cost of building and equipment was $120,000-with-a-book-valueof-$95,000.- During 20XX, New York Traders disposed of this store-at-a-loss of $35,800.T Accounting for intangibles ---Trademarks, patents, how the value is determined. Bob's-Bacon: House-has Copyrights, customer deposits, goodwill, patents, trademarks, [ T 9 Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. Income tax expense paid is $90,500. Bob's Bacon House income tax rate for 20XX is 30%. 10 Finished Goods inventory purchased from suppliers on account 1 2/10/20XX 10,000 units @ $26 each 6/12/20XX 15,000 units @ $28 each 10/23/20XX 12,000 units @ $29 each 11/25/20XX 8,000 units @ $30 each Bob's Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account Payments made to suppliers on account during 20XX are $1,124,450 Sales made to customers on account are 49,356 units @ $36 each 2 3 4 Cash collected from customers during 20XX is $1,750,700. 5 Total interest paid on notes payable and bonds payable amounted to $17,415. Rental income on property leased out is $25,650. 6 7 Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800. 8 Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX Financial Data of Bob's Bacon House Inc. as of January 1, 20XX Accounts Payable 200,500 Account Receivable 165,700 Accumulated Depreciation's 350,000 Additional Paid-In Capital 40,000 Allowance for Doubtful Accounts 2,650 Building and Equipment 1,120,000 Cash 45,300 Common Stock 544,850 112,000 Copyrights Customer Deposits (expected to be paid in 20XX) 375 Goodwill 225,000 Income Taxes Payable 42,340 Inventories @ $25/unit 315,250 Long-term Investments in Warren Co. 95,630 Deposits With Vendors 47,200 Land 125,000 Mortgage Payable ($2,780 per month) 667,200 26,000 2% Notes Payable to Banks (due 20XX) Notes Receivable (due 20XX) 16,000 Patents 219,335 Retained Earnings 127,500 BOB'S BACON HOUSE, INC. BALANCE SHEET December 31, 2020 Customer deposits 375 Income taxes payable 24,647 Assets Notes payable to banks (@2%) 26,000 Current assets $ 576,010 395,072 Cash Total current liabilities Long-term debt Accounts receivable 191,816 Mortgage payable 667,200 Less: Allowance for doubtful accounts 3,836 187,980 Twenty-year 3% bonds due January 1, 2040 600,000 1,267,200 Notes receivable 16,000 Total liabilities 1,662,272 Inventories 206,350 986.340 Stockholders' equity Total current assets Long-term investments Common stock 544,850 95,630 Long-term investments in Warren Co. Property, plant, and equipment Additional paid-in capital 40,000 584,850 Building and equipment 1,000,000 Retained earnings 297,383 Less: Accumulated depreciation 381,000 619,000 Total stockholders' equity 882,233 Land 125,000 Total liabilities and stockholders' equity 2,544.505 744,000 Total property, plant, and equipment Intangible assets Copyrights 112,000 Goodwill 225,000 End of document I Patents 219,335 Trademarks 115,000 671,335 Other assets Deposits with vendors 47,200 47,200 Total assets 2,544,505 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 344,050 BOB'S BACON HOUSE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Sales Sales revenue Cost of goods sold Gross profit 1,776,816 1,376,900 399,916 Operating Expense Selling expenses Selling and administrative expenses Bad debts expense Depreciation expense 72,475 3,836 56,000 132,311 267,605 Income from operations Other revenues and gains Rent revenue 25,650 293,255 17,415 275,840 Other expenses and losses Interest on bonds and notes Income from continuing operations Discontinued operations Loss on disposition of store Income before income tax Income tax Net income 35,800 240,040 90,500 149,540 Part-3-Disclosure notes Accounting Policies --The-accounting policies section provides information on the accounting: policies adopted by the management-in preparing the financial statements. -Disclosing the accounting policies helps users interpret-and-understand the financial statements better. I Inventory.valuation-Bob's-Bacon House, Inc. uses periodic inventory system andLIFO. costing method. Depreciation of Assets - Straightline depreciation used Events -like-thesale-of-division --Bob's Bacon-House-Inc. was operating a retail store in: Chicago. Original cost of building and equipment was $120,000-with-a-book-valueof-$95,000.- During 20XX, New York Traders disposed of this store-at-a-loss of $35,800.T Accounting for intangibles ---Trademarks, patents, how the value is determined. Bob's-Bacon: House-has Copyrights, customer deposits, goodwill, patents, trademarks, [ T 9 Selling and administrative expenses are $128,475. These expenses include $56,000 depreciation expense on building and equipment but exclude bad debts expenses. Income tax expense paid is $90,500. Bob's Bacon House income tax rate for 20XX is 30%. 10 Finished Goods inventory purchased from suppliers on account 1 2/10/20XX 10,000 units @ $26 each 6/12/20XX 15,000 units @ $28 each 10/23/20XX 12,000 units @ $29 each 11/25/20XX 8,000 units @ $30 each Bob's Bacon House Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account Payments made to suppliers on account during 20XX are $1,124,450 Sales made to customers on account are 49,356 units @ $36 each 2 3 4 Cash collected from customers during 20XX is $1,750,700. 5 Total interest paid on notes payable and bonds payable amounted to $17,415. Rental income on property leased out is $25,650. 6 7 Bob's Bacon House Inc. was operating a retail store in Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 20XX, New York Traders disposed of this store at a loss of $35,800. 8 Bob's Bacon House Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 20XX Financial Data of Bob's Bacon House Inc. as of January 1, 20XX Accounts Payable 200,500 Account Receivable 165,700 Accumulated Depreciation's 350,000 Additional Paid-In Capital 40,000 Allowance for Doubtful Accounts 2,650 Building and Equipment 1,120,000 Cash 45,300 Common Stock 544,850 112,000 Copyrights Customer Deposits (expected to be paid in 20XX) 375 Goodwill 225,000 Income Taxes Payable 42,340 Inventories @ $25/unit 315,250 Long-term Investments in Warren Co. 95,630 Deposits With Vendors 47,200 Land 125,000 Mortgage Payable ($2,780 per month) 667,200 26,000 2% Notes Payable to Banks (due 20XX) Notes Receivable (due 20XX) 16,000 Patents 219,335 Retained Earnings 127,500
