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Part I . You have been provided check figures. In good form, prepare a multiple step income statement, statement of retained earnings, and classified balance
Part I.
- You have been provided check figures.
- In good form, prepare a multiple step income statement, statement of retained earnings, and classified balance sheet. Include Earnings Per Share on the Income Statement. You must use Excel.
- In Excel, use the Bottom Border function, not the Underline function. Also, use the Accounting format for cells, not Currency. However, do not show decimal places. Nobody is counting pennies. Refer to 211 regarding the placement of $, underlining and double underlining.
- Show Accumulated Depreciation and Allowance for Bad Debts (and other similar lines) on the appropriate financial statement (dont just show the net amount)
Check Figures: income from operations $299,600 net income $232,120; total assets $1,181,800; taxes payable $99,480.
Part II
- In good form, prepare common-size financial statements (balance sheet and income statement).
- You must use Excel. Duplicate the tab you have from Part I and add a column to the right of the original numbers.
- Dont change the Balance Sheet & Income Statement to one column, dont remove the indents, and dont remove the subheadings.
- Sales (not net sales) are 100% on the Income Statement. The Balance Sheet (Assets are 100%) is usually easier; start with it. When you are finished, you should add up all of the percentages (excluding subtotals) and they will equal 100% (assets if on the BS, sales if on the IS).
- If you are using Excel and you enter a formula and drag it down, keep in mind you have two columns of information. You may need to change the formula in certain cells to pick up the correct numerator. Carry your percentage out to at least one decimal place.
- The items you subtracted from Sales to arrive at NI should be positive percentages. Items you added in the income statement (excluding Sales) should be negative numbers (shown in parentheses).
Smith, Inc.
Adjusted Trial Balance
Description | Debit | Credit |
Accounts receivable | 304,000 | |
Accumulated depreciation - buildings | 175,000 | |
Accumulated depreciation - vehicles | 44,000 | |
Allowance for bad debts | 1,000 | |
Buildings | 406,000 | |
Copyrights | 130,000 | |
Inventory | 69,000 | |
Land | 98,000 | |
Land held for speculation | 170,000 | |
Last National Bank Checking | 51,000 | |
Prepaid insurance | 12,800 | |
Supplies | 8,000 | |
Vehicles | 153,000 | |
Accounts payable | 73,000 | |
Bonds payable | 400,000 | |
Interest payable | 59,000 | |
Discount on bonds payable | 83,800 | |
Notes payable (due in 3 years) | 113,000 | |
Unearned rent | 13,000 | |
Additional paid in capital, common stock | 72,000 | |
Common stock ($10 par) | 160,000 | |
Dividends paid | 85,000 | |
Retained earnings, Janaury 1 | 164,000 | |
Treasury stock | 35,000 | |
Rent revenue | 84,000 | |
Sales | 1,711,600 | |
Sales discounts | 103,000 | |
Advertising expense | 73,000 | |
Commissions paid | 123,000 | |
Cost of goods sold expense | 472,000 | |
Depreciation expense | 72,000 | |
Insurance expense | 9,000 | |
Interest expense | 11,000 | |
Loss on sale of equipment | 41,000 | |
Salaries expense | 492,000 | |
Sales entertainment expense | 46,800 | |
Supplies used | 21,200 | |
Totals | 3,069,600 | 3,069,600 |
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