I. Prepare a Balance Sheet for the fiscal year ending June 30, 2020 based on the following transactions (round figures to the nearest dollar):

1) established a community college scholarship fund $1,005,700

2) land value appreciates @12%/yr.

3) building mortgage 612,866

4) salaries owed 155,000

5) 25% of customer debt non-collectible

6) Company B promissory note matured 230,000

7) copyright royalty 175,000

8) land purchased January 1, 2016 850,000

9) commissions owed 20,321

10) building 30 year service life; SLD

11) bond 100,975

12) land sold @ 15% over market value

13) mortgage on equipment 215, 566

14) patent royalty 55,000

15) equipment owed 180,000

16) office furniture purchased July 1,2018 45,000

17) customers owe 56,300

18) par value: preferred $125/share

19) promissory note matured 325,450

20) taxes = 1/3 of remaining merchandise inventory + 130,000 ?

21) merchandise inventory 77,100

22) retained earnings from June 30, 2019 2,561,240

23) insurance bought at July 1, 2017 for three years 15, 600

24) par value common; $75/sh.

25) building purchased July 1, 2016 1,000,000

26) office furniture 5 year service life; SLD

27) common stock sold; 825 shares

28) preferred shares sold; 410 shs.

29) ending cash balance = amount from sale of business property

30) equipment purchased January 1, 2017 340,000

31) supplies owed 15750

32) Equipment service life = 17 years: SLD

II. Prepare an Income Statement based on the following below:

• Sales Returned = 420,048
• Gross Sales = Sales returned + 60% sales returned
• Depreciation = yearly depreciation of Furniture from Balance Sheet
• Sales expenses = 13% of Net Sales
• Depreciation = yearly depreciation of Equipment from Balance Sheet
• Administrative expenses = 35,790
• Interest expense = 6 % of gross sales
• Cost of Goods Sold = 25% of Merchandise Inventory from Balance Sheet
• Taxes = 16.58% of Taxes owed from Balance Sheet
• Discounts on Sales = 19,780
• Income from Other Sources = 577,332

(correction from class) ****Gross Profit not Net Sales = Gross Income

Make A balance sheet for both of these.