Question
Merchandise inventory $ 72,000 Notes payable (long-term) 80,000 Sales 240,000 Buildings and equipment 144,000 Selling, general, and administrative expenses 24,000 Accounts receivable 36,000 Common stock
Merchandise inventory | $ | 72,000 |
Notes payable (long-term) | 80,000 | |
Sales | 240,000 | |
Buildings and equipment | 144,000 | |
Selling, general, and administrative expenses | 24,000 | |
Accounts receivable | 36,000 | |
Common stock (20,000 shares) | 80,000 | |
Income tax expense | 19,200 | |
Cash | 91,120 | |
Retained earnings, 1/1/16 | 49,200 | |
Accrued liabilities | 4,800 | |
Cost of goods sold | 144,000 | |
Accumulated depreciation | 64,800 | |
Interest expense | 8,000 | |
Accounts payable | 24,000 | |
Dividends declared and paid during 2016 | 4,480 | |
Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year ended December 31, 2016. There were no changes in paid-in capital during the year.
Required:
a. Prepare an income statement and statement of changes in stockholders equity for the year ended December 31, 2016, and a balance sheet at December 31, 2016, for Shae, Inc. Based on the financial statements that you have prepared for part a, answer the questions in parts be.
*I am not able to figure the 2 assets missing, 1 liability missing as well as 2 under stockholder's equity.
SHAE, INC. | ||||
Balance Sheet | ||||
December 31, 2016 | ||||
Assets | ||||
Accounts receivable | $36,000 | |||
Cash | 91,120 | |||
Merchandise inventory | 72,000 | |||
Total current assets | $199,120 | |||
Buildings and equipment | 144,000 | |||
Less: Accumulated depreciation | 64,800 | |||
Total assets | $199,120 | |||
Liabilities | ||||
Accounts payable | $24,000 | |||
Accrued liabilities | 4,800 | |||
Notes payable (long term) | 80,000 | |||
Total liabilities | $108,800 | |||
Stockholders Equity | ||||
Common stock | $80,000 | |||
Retained earnings | 89,520 | |||
Total stockholders equity | $169,520 | |||
Total liabilities and stockholders equity | $278,320 |
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