Problem 16 4 Financial Accounting Review Problem The Gomez Company uses perpetual inventory procedure Given below is the balance sheet for the Gomez Company as of December 31, 2018 GOMEZ COMPANY Balance Sheet 12 31 2018 Assets Current Assets GOMEZ COMPANY Balance Sheet 12 31 2018 Assets Current Assets Cash $30,000 Accounts Receivable 70,000 Inventory 100,000 Prepaid Expenses 10,000 $210,000 Property, Plant, and Equipment Land $30,000 Buildings and Equipment (less accumulated depreciation of $80,000) 160,000 190,000 Total Assets $400,000 Liabilities and Stockholder's Equity Current Liabilities Accounts Payable $40,000 Income Taxes Payable 30,000 Accrued Expenses Payable 15,000 $85,000 Long Term Liabilities Bonds payable, 9 due 2025 100,000 Total Liabilities $185,000 Stockholder's Equity Capital stock $150,000 ($20 par value, 7,500 shares outstanding) Retained earnings 65,000 Total Equity $215,000 Total Liabilities and Stockholder's Equity $400,000 The summarized transactions of the Gomez Company for 2019 are below a Sales on account, $520,000 b Purchases of merchandise on account, $250,000 (Debit Inventory account) c Cost of goods sold for the year, $260,000 d Collections from customers on account, $510,000 e Paid vendors on account, $240,000 f Expenses prepaid during year, $8,000 Of the prepaid expenses, $11,000 became miscellaneous expenses during the year g Bond interest expense paid in cash, $9,000 h Payroll expenses accrued during year, $150,000 i Paid accrued operating expenses, $155,000 j Accrued income taxes paid, $30,000 k Depreciation expense, $30,000 l New equipment purchased for cash, $40,000 m Income taxes are to be accrued at a rate of 40 percent n Dividends declared and paid, $5,000 How do I prepare T accounts for all balance sheet, income statement, and statement of retained earnings accounts and record the year's activities in them Continue this process far enough so you can prepare parts (b) and (c) b I need help preparing an income statement and a statement of retained earnings for the Gomez Company for the year ending December 31, 2019 (You may find that reviewing the Demonstration Problem for this chapter is helpful in preparing these statements ) c I need help preparing balance sheet as of December 31, 2019

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Problem 16-4 Financial Accounting Review Problem The Gomez Company uses perpetual inventory procedure. Given below is the balance sheet for the Gomez Company as of

Problem 16-4

Financial Accounting Review Problem

The Gomez Company uses perpetual inventory procedure. Given below is the balance sheet for the Gomez Company as of December 31, 2018:

GOMEZ COMPANY

Balance Sheet

12/31/2018

Assets

Current Assets:

GOMEZ COMPANY

Balance Sheet

12/31/2018

Assets

Current Assets:

Cash . $30,000

Accounts Receivable 70,000

Inventory 100,000

Prepaid Expenses 10,000

$210,000

Property, Plant, and Equipment:

Land $30,000

Buildings and Equipment (less accumulated depreciation of $80,000)

160,000 190,000

Total Assets $400,000

Liabilities and Stockholder's Equity

Current Liabilities:

Accounts Payable $40,000

Income Taxes Payable 30,000

Accrued Expenses Payable +15,000

$85,000

Long-Term Liabilities:

Bonds payable, 9% due 2025 . + 100,000

Total Liabilities $185,000

Stockholder's Equity:

Capital stock $150,000

($20 par value, 7,500 shares outstanding)

Retained earnings . 65,000

Total Equity $215,000

Total Liabilities and Stockholder's Equity $400,000

The summarized transactions of the Gomez Company for 2019 are below:

Sales on account, $520,000.

Purchases of merchandise on account, $250,000. (Debit Inventory account)

Cost of goods sold for the year, $260,000.

Collections from customers on account, $510,000.

Paid vendors on account, $240,000.

Expenses prepaid during year, $8,000. Of the prepaid expenses, $11,000 became miscellaneous expenses during the year.

Bond interest expense paid in cash, $9,000.

Payroll expenses accrued during year, $150,000.

Paid accrued operating expenses, $155,000.

Accrued income taxes paid, $30,000.

Depreciation expense, $30,000.

New equipment purchased for cash, $40,000.

Income taxes are to be accrued at a rate of 40 percent.

Dividends declared and paid, $5,000.

How do I prepare T-accounts for all balance sheet, income statement, and statement of retained earnings accounts and record the year's activities in them. Continue this process far enough so you can prepare parts (b) and (c).

I need help preparing an income statement and a statement of retained earnings for the Gomez Company for the year ending December 31, 2019. (You may find that reviewing the Demonstration Problem for this chapter is helpful in preparing these statements.)

c.I need help preparing balance sheet as of December 31, 2019.