Prior years financial statements for this years begining balances. Appreciate the help. Some notes would be helpful to know where things are coming from thank you!!
Problems 6-5 Beamer Biz Year 4, 2022, Paid her beginning accounts payable and received all owed her. Bought 5 Beamers, sold 10. Bought for $48,000 each, sold for $70,000. Bought for 25% down and the other 75% to be paid next year. Sold for 80% down with 20% to be paid next year. Paid workers what she owed them at the beginning plus $4,000 per month for eleven months, owed wages of $4,000 at the end of the year for December. Paid $3,000 for utilities. On January 1, she bought a pre- fabricated building to put on the land she invested in year 2019. The building cost $200,000. It is expected that the building will last ten years and then be worth about 25% of the original cost. To buy the building, she took out a $160,000 interest-only mortgage from the bank and used $40,000 of the company's money. She must pay the bank 8% interest at the end of each year on the building's mortgage. The $160,000 will be due 10 years from the date of purchase. She paid the interest on the building's mortgage for Year 4 on December 31. On January 1, 2022 she spent $60,000 on furniture and fixtures for the new building. It is estimated that these items will last 10 years and then be worth 10% of their value. She opened her new location on January 1. (She now operates two locations. She paid 10 months' rent on her first location at $1,000 per month. She paid Uncle Phil the interest owed on December 31. Remember she expenses her insurance at 300 per month. Also, do not forget the depreciation on the sign. She paid last year's taxes. She paid a dividend of $30,000. She owes 2022 taxes at the end of the year (same rate as last year). (Prepare Financials, which also includes Journal Entries & T- Accounts) Assets Current Assets Cash Accounts Receivable Inventory 427,700 $ $ 13,830 CBB, Inc. Balance Sheet December 31, 2021 Liabilities Current Liabilities 424,100 Accounts Payable 105,600 Income Taxes Payable 644,000 Wages Payable Total Current Liabilities 1,000 Long-term Debt 1,174,700 Note Payable-Phil Total Long-Term Debt Total Liabilities 414,000 12,750 3,000 429,750 $ 430,830 1,178,300 $ 150,000 150,000 10,000 $ 580,830 579,750 Prepaid Rent Total Current Assets Fixed Assets Signs Less: Accumulated Depreciation Subtotal Land Net Fixed Assets Other Assets Security Deposit Total Assets (900) 9,100 50,000 59,100 Owners' Equity Common Stock Retained Earnings $ Total Owners' Equity 172,570 485,000 170,050 657,570 $ 655,050 1,238,400 $ 1,000 1,234,800 Total Liabilities and Owners' Equity 1,238, 400 $ 1,234,800 CBB, Inc. Income Statement For the Year Ended December 31, 2021 Sales Cost of Sales Gross Margin $ 264,000 166,000 98,000 $ 30,000 12,000 900 3,000 3,600 Operating Expenses Wage Expense Rent Expense Depreciation Expense Utilities Expense Insurance Expense Total Operating Expenses Income From Operations Other Revenues &
Interest Expense Income Before Taxes Tax Expense Net Income 49,500 $ 48,500 0 45,900 52,100 6,000 > 42,500 12,750 $ 29,750 46,100 13,830 32,270 Earnings Per Share $29,750 / ((5,700*8/12) + (5,800*4/12)) $ 5.19 $ 5.63 CBB, Inc. Statement of Owners' Equity For the Year Ended December 31, 2021 Common Retained Shares 5700 100 Beginning Balance Issuance of Common Stock Earnings for the year Dividend Declared Ending Balance Stock Earnings $ 475,000 $ 152,300 $ 10,000 29,750 (12,000) $ 485,000 $ 170,050 $ Totals 627,300 10,000 29,750 (12,000) 655,050 5800 if no insurance JE Common Retained Shares 5700 100 Beginning Balance Issuance of Common Stock Earnings for the year Dividend Declared Ending Balance Stock Earnings $ 475,000 $ 152,300 $ 10,000 32,270 (12,000) $ 485,000 $ 172,570 $ Totals 627,300 10,000 32,270 (12,000) 657,570 5800 Problems 6-5 Beamer Biz Year 4, 2022, Paid her beginning accounts payable and received all owed her. Bought 5 Beamers, sold 10. Bought for $48,000 each, sold for $70,000. Bought for 25% down and the other 75% to be paid next year. Sold for 80% down with 20% to be paid next year. Paid workers what she owed them at the beginning plus $4,000 per month for eleven months, owed wages of $4,000 at the end of the year for December. Paid $3,000 for utilities. On January 1, she bought a pre- fabricated building to put on the land she invested in year 2019. The building cost $200,000. It is expected that the building will last ten years and then be worth about 25% of the original cost. To buy the building, she took out a $160,000 interest-only mortgage from the bank and used $40,000 of the company's money. She must pay the bank 8% interest at the end of each year on the building's mortgage. The $160,000 will be due 10 years from the date of purchase. She paid the interest on the building's mortgage for Year 4 on December 31. On January 1, 2022 she spent $60,000 on furniture and fixtures for the new building. It is estimated that these items will last 10 years and then be worth 10% of their value. She opened her new location on January 1. (She now operates two locations. She paid 10 months' rent on her first location at $1,000 per month. She paid Uncle Phil the interest owed on December 31. Remember she expenses her insurance at 300 per month. Also, do not forget the depreciation on the sign. She paid last year's taxes. She paid a dividend of $30,000. She owes 2022 taxes at the end of the year (same rate as last year). (Prepare Financials, which also includes Journal Entries & T- Accounts) Assets Current Assets Cash Accounts Receivable Inventory 427,700 $ $ 13,830 CBB, Inc. Balance Sheet December 31, 2021 Liabilities Current Liabilities 424,100 Accounts Payable 105,600 Income Taxes Payable 644,000 Wages Payable Total Current Liabilities 1,000 Long-term Debt 1,174,700 Note Payable-Phil Total Long-Term Debt Total Liabilities 414,000 12,750 3,000 429,750 $ 430,830 1,178,300 $ 150,000 150,000 10,000 $ 580,830 579,750 Prepaid Rent Total Current Assets Fixed Assets Signs Less: Accumulated Depreciation Subtotal Land Net Fixed Assets Other Assets Security Deposit Total Assets (900) 9,100 50,000 59,100 Owners' Equity Common Stock Retained Earnings $ Total Owners' Equity 172,570 485,000 170,050 657,570 $ 655,050 1,238,400 $ 1,000 1,234,800 Total Liabilities and Owners' Equity 1,238, 400 $ 1,234,800 CBB, Inc. Income Statement For the Year Ended December 31, 2021 Sales Cost of Sales Gross Margin $ 264,000 166,000 98,000 $ 30,000 12,000 900 3,000 3,600 Operating Expenses Wage Expense Rent Expense Depreciation Expense Utilities Expense Insurance Expense Total Operating Expenses Income From Operations Other Revenues & Interest Expense Income Before Taxes Tax Expense Net Income 49,500 $ 48,500 0 45,900 52,100 6,000 > 42,500 12,750 $ 29,750 46,100 13,830 32,270 Earnings Per Share $29,750 / ((5,700*8/12) + (5,800*4/12)) $ 5.19 $ 5.63 CBB, Inc. Statement of Owners' Equity For the Year Ended December 31, 2021 Common Retained Shares 5700 100 Beginning Balance Issuance of Common Stock Earnings for the year Dividend Declared Ending Balance Stock Earnings $ 475,000 $ 152,300 $ 10,000 29,750 (12,000) $ 485,000 $ 170,050 $ Totals 627,300 10,000 29,750 (12,000) 655,050 5800 if no insurance JE Common Retained Shares 5700 100 Beginning Balance Issuance of Common Stock Earnings for the year Dividend Declared Ending Balance Stock Earnings $ 475,000 $ 152,300 $ 10,000 32,270 (12,000) $ 485,000 $ 172,570 $ Totals 627,300 10,000 32,270 (12,000) 657,570 5800
