Now that you have prepared the adjusting and closing entries, Smith Manufacturing, Inc. has asked that you prepare a classified Balance Sheet, a multiple-step Income Statement, and Cash Flow Statement using the indirect method. Use your ending numbers from last week's assignment. The prior-year trial balance was included in a separate tab in the spreadsheet you downloaded last week. You will need these numbers to prepare the Statement of Cash Flows. Prepare your financial statements in Excel.
Smith Manufacturing, Inc. Trial Balance December 31, 20XX Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals DR 362,750 320,750 CR 15,000 10,000 30,000 50,000 150,000 This was provided in the instructions 7,500 500,000 50,000 105,000 125,000 500,000 300,000 171,000 850,000 550,000 150,000 2,123,500 2,123,500 Smith Manufacturing, Inc. Post-Closing Trial Balance December 31, 20XX Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals DR 15,000 225,750 CR 20,000 5,000 80,000 50,000 150,000 This was provided in the instructions 7,500 500,000 50,000 55,000 50,000 5,000 17,250 350,000 300,000 171,000 1,025,750 1,025,750 Week 3 Accounting Project-Adjusting and Closing Entries Blake Ashmore Rasmussen College 4/25/2015 Smith Manufacturing, Inc. Adjusting Entries December 31, 20XX Debit Credit Bad Debt Expense Allowable for doubtful accounts 8500 Insurance Expense Prepaid Insurance 2000 Inventory Cost of Goods Sold Building Depreciation Accumulated Building Depreciation 8500 2000 10000 10000 7500 7500 Equipment Depreciation Accumulated Equipment Depreciation 50000 Interest Expense Interest Payable 21250 Salaries Expense Salaries Payable 2000 50000 21250 2000 Week 3 Accounting Project-Adjusting and Closing Entries Blake Ashmore Rasmussen College 4/25/2015 Smith Manufacturing, Inc. Closing Entries December 31, 20XX Debit Credit Income Statement Cost of Goods Sold Salaries Expense Bad Debt Expenses Insurance Expenses Building Deprectiation Expense Equipment Depreciation expense Interest Expense 781250 Sales Revenue Income Summary 850000 Income Summary Retained Earnings 68750 540000 152000 8500 2000 7500 50000 21250 850000 68750
