RT Construction

RT Construction builds fine crafted robotics. Each robot sells for $125 and requires 4A, 2B, and 3C. During the period, RT bought 20A, 22B, and 40C on account for the same prices as listed in the beginning balance sheet. RT uses FIFO inventory costing. (All numbers are in $100s, except stock shares.) RT sold 12 robots.

Other Costs = Building rent (paid in cash this period) $100 (1/2 sales, production)

Labor (accrued) $50 each (1 corporate, 3 production)

Beginning Balance Sheet

Cash $200

Accounts Receivable 100

Inventory A 50 @ $10 each 500

B 10 @ $5 each 50

C 3 @ $8 each 24

Machinery 300

Accumulated Depreciation 100 200

Land 250

Total Assets $ ?

Accounts Payable $120

Bonds Payable 300

Common Stock 400

Retained Earnings ?

Total Liabilities and Stockholders Equity $ ?

Other activities:

Sold robots for cash and on AR.

Sold land with cost $80 for $100 cash.

Machinery depreciation is $20.

Bad Debt Expense is 5% of ending AR (no beginning Allowance balance)

Bought patent by issuing $60 short-term note payable.

Accrued interest expense of $25 (not paid at yearend).

Tax rate is 20% (not paid at yearend). If there is a pretax loss, the tax rate results in a tax benefit.

There were 10,000 shares of common stock outstanding the full year.

Paid $110 dividend.

Develop a Multiple Step Income Statement, Statement of Owners Equity (RE and Common Stock columns), and Balance Sheet. The time period is Q1, ending March 31, 2018.