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Scenario: You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that

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Scenario: You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint: we covered a few of the many possible formulas in discussion posts). Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers. Generally, buyers are most interested in knowing about profits. Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 i.e. Income statement, Balance Sheet, Statement of Owners Equity/Retained Earnings, Statement of Cash Flows. 2.) Write a letter to potential buyers. Chody 11 - A A Ceneral 18 Wrex Zerge Center hes 3 BIU $ % ) Cand Format Cat Formatting Tables Det GIS B D E F G H 1 2 3 Dec 31, 19 Debit Credit 17,910.19 Door in to w 5 6 7 8 35,068.48 755.05 92.707.93 2.440.00 30.683 38 832.00 4,050.00 3,703.02 9 10 11 12 13 14 15 10300 - Savings 10100 Checking 10400 - Petty Cash 11000 - Accounts Receivable 12000 Undeposited Funds 12100 - Inventory Asset 12800 - Employee Advances 13100 - Pre-paid Insurance 13400. Retainage Receivable 1600 - scooter 15000 Furniture and Equipment 15100 Vehicles 15200 - Buildings and Improvements 15300 Construction Equipment 16900 - Land 17000 - Accumulated Depreciation 18700 - Security Deposits 20000 - Accounts Payable 4,000.00 34,326.00 78.936.91 325,000.00 15.300,00 16 90,000.00 17 18 19 110.344.60 1,720.00 20 15,536.30 A- = == :: Merge & Camer $ % Condom Formattingsstile Cell Det 0 X B D E F G H Dec 31, 19 Debit Credit 150,094.20 382.62 1,364.00 2.118.82 0.00 100.00 299.19 110.00 48.13 20500 - QuickBooks Credit Card 20600. Caloll Credit Card 24000. Payroll Liabilities:24010. Federal Withholding 24000 - Payroll Liabilities:24020. FICA Payable 24000 - Payroll Liabilities:24030 - AEIC Payable 24000. Payroll Liabilities:24040. FUTA Payable 24000. Payroll Liabilities:24050. State Withholding 24000 Payroll Liabilities:24060. SUTA Payable 24000. Payroll Liabilities:24070 . State Disability Payable 24000. Payroll Liabilities: 24080. Worker's Compensation 24000. Payroll Liabilities:24100 - Emp. Health Ins Payable 25500. Sales Tax Payable 2600 - Scooter Loan 23000. Loan Vehicles (Van) 23100 - Loan Vehicles (Utility Truck) 23200 - Loan Vehicles (Pickup Truck) 28100 - Loan. Construction Equipment 28200 Loan - Furniture Office Equip 1,214,31 150.00 957 63 4,000.00 10,501.47 19,936.91 22,641.00 13,91132 21,000.00 Trial Balance 2010 Trial Balance 2018 Child DR General 35 W 9 Mega Center EN TU- A all $ % ) Com Formatting Tables OEM Dalmin 5 X B D E F G H Dec 31, 19 Debit Credit 2,693.21 298,283.00 39.273.75 61.756.76 0.00 36.729.25 208,225.42 119.920,67 82,710.35 28700 . Note Payable - Bank of Anycity 28900. Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 - Construction Income:40110 - Design Income 40100 - Construction Income:40130 - Labor Income 40100 Construction Income:40140. Materials Income 40100 - Construction Income:40150 Subcontracted Labor Income 40100 - Construction Income:40199 Less Discounts given 40500. Reimbursement Income:40520 - Permit Reimbursement Income 40500. Reimbursement Income: 40530 . Reimbursed Freight & Delivery 50100 - Cost of Goods Sold 54000 - Job Expenses:54200 - Equipment Rental 54000 Job Expenses:54300Job Materials 54000 Job Expenses: 54400. Permits and Licenses 54000. Job Expenses: 54500. Subcontractors 54000 - Job Expenses:54520 - Freight & Delivery 48.35 1.223.75 896 05 14,766.19 1,850.00 99.435.90 700.00 63.217.95 797.10 Merge Center $ % 2 GIS Cel B D E F G 1 2 Dec 31, 19 Debit Credit 54000 Job Expenses:54599. Less Discounts Taken food 201.81 44.95 1,588.70 2,850.24 2,406.00 57 58 59 60 61 62 63 64 65 66 67 300.00 125,00 582.06 5,885.98 60100. Automobile:60110 - Fuel 60100 - Automobile:60120. Insurance 60100 . Automobile:60130. Repairs and Maintenance 60300 - Bad debt 60600. Bank Service Charges 62100 - Insurance:62110 Disability Insurance 62100. Insurance:62120. Liability Insurance 62100 - Insurance:62130 - Work Comp 62400 - Interest Expense:62420 - Loan Interest 62700 - Payroll Expenses:62710 - Gross Wages 62700 - Payroll Expenses:62720 Payroll Taxes 62700 - Payroll Expenses:62730 - FUTA Expense 62700. Payroll Expenses:62740 - SUTA Expense 63100. Postage 63600. Professional Fees:63610 - Accounting 64200 - Repairs:64210 - Building Repairs Trial Balance 2010 Thail Balance 2018 13,657.07 151.995 65 68 110.400.10 59 30 71 8.445 61 268.00 1.233.50 104.20 72 73 74 250.00 175.00 4 Merge S9 Cool for Forming the Det G1s . f A B c D E F G H 1 Dec 31, 19 2 Debit Credit 0.00 1.350.00 2,820.08 1,164.10 141.15 26400 80 75 64200 - Repairs:64220 . Computer Repairs 76 64200 - Repairs:64230 Equipment Repairs 77 64800 Tools and Machinery 78 55100 Utilities:65110 Gas and Electric 79 65100 Utilities: 65120. Telephone 65100 Ulilities:65130 Water 81 70100 Other Income 82 70200 Interest Income 83 TOTAL 84 85 86 87 88 146.00 229.16 1,225,000.48 1.225.000.48 1998 98 99 90 92 Trial Balance 2010 Tria Bance 2018 + Scenario: You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint: we covered a few of the many possible formulas in discussion posts). Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers. Generally, buyers are most interested in knowing about profits. Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 i.e. Income statement, Balance Sheet, Statement of Owners Equity/Retained Earnings, Statement of Cash Flows. 2.) Write a letter to potential buyers. Chody 11 - A A Ceneral 18 Wrex Zerge Center hes 3 BIU $ % ) Cand Format Cat Formatting Tables Det GIS B D E F G H 1 2 3 Dec 31, 19 Debit Credit 17,910.19 Door in to w 5 6 7 8 35,068.48 755.05 92.707.93 2.440.00 30.683 38 832.00 4,050.00 3,703.02 9 10 11 12 13 14 15 10300 - Savings 10100 Checking 10400 - Petty Cash 11000 - Accounts Receivable 12000 Undeposited Funds 12100 - Inventory Asset 12800 - Employee Advances 13100 - Pre-paid Insurance 13400. Retainage Receivable 1600 - scooter 15000 Furniture and Equipment 15100 Vehicles 15200 - Buildings and Improvements 15300 Construction Equipment 16900 - Land 17000 - Accumulated Depreciation 18700 - Security Deposits 20000 - Accounts Payable 4,000.00 34,326.00 78.936.91 325,000.00 15.300,00 16 90,000.00 17 18 19 110.344.60 1,720.00 20 15,536.30 A- = == :: Merge & Camer $ % Condom Formattingsstile Cell Det 0 X B D E F G H Dec 31, 19 Debit Credit 150,094.20 382.62 1,364.00 2.118.82 0.00 100.00 299.19 110.00 48.13 20500 - QuickBooks Credit Card 20600. Caloll Credit Card 24000. Payroll Liabilities:24010. Federal Withholding 24000 - Payroll Liabilities:24020. FICA Payable 24000 - Payroll Liabilities:24030 - AEIC Payable 24000. Payroll Liabilities:24040. FUTA Payable 24000. Payroll Liabilities:24050. State Withholding 24000 Payroll Liabilities:24060. SUTA Payable 24000. Payroll Liabilities:24070 . State Disability Payable 24000. Payroll Liabilities: 24080. Worker's Compensation 24000. Payroll Liabilities:24100 - Emp. Health Ins Payable 25500. Sales Tax Payable 2600 - Scooter Loan 23000. Loan Vehicles (Van) 23100 - Loan Vehicles (Utility Truck) 23200 - Loan Vehicles (Pickup Truck) 28100 - Loan. Construction Equipment 28200 Loan - Furniture Office Equip 1,214,31 150.00 957 63 4,000.00 10,501.47 19,936.91 22,641.00 13,91132 21,000.00 Trial Balance 2010 Trial Balance 2018 Child DR General 35 W 9 Mega Center EN TU- A all $ % ) Com Formatting Tables OEM Dalmin 5 X B D E F G H Dec 31, 19 Debit Credit 2,693.21 298,283.00 39.273.75 61.756.76 0.00 36.729.25 208,225.42 119.920,67 82,710.35 28700 . Note Payable - Bank of Anycity 28900. Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 - Construction Income:40110 - Design Income 40100 - Construction Income:40130 - Labor Income 40100 Construction Income:40140. Materials Income 40100 - Construction Income:40150 Subcontracted Labor Income 40100 - Construction Income:40199 Less Discounts given 40500. Reimbursement Income:40520 - Permit Reimbursement Income 40500. Reimbursement Income: 40530 . Reimbursed Freight & Delivery 50100 - Cost of Goods Sold 54000 - Job Expenses:54200 - Equipment Rental 54000 Job Expenses:54300Job Materials 54000 Job Expenses: 54400. Permits and Licenses 54000. Job Expenses: 54500. Subcontractors 54000 - Job Expenses:54520 - Freight & Delivery 48.35 1.223.75 896 05 14,766.19 1,850.00 99.435.90 700.00 63.217.95 797.10 Merge Center $ % 2 GIS Cel B D E F G 1 2 Dec 31, 19 Debit Credit 54000 Job Expenses:54599. Less Discounts Taken food 201.81 44.95 1,588.70 2,850.24 2,406.00 57 58 59 60 61 62 63 64 65 66 67 300.00 125,00 582.06 5,885.98 60100. Automobile:60110 - Fuel 60100 - Automobile:60120. Insurance 60100 . Automobile:60130. Repairs and Maintenance 60300 - Bad debt 60600. Bank Service Charges 62100 - Insurance:62110 Disability Insurance 62100. Insurance:62120. Liability Insurance 62100 - Insurance:62130 - Work Comp 62400 - Interest Expense:62420 - Loan Interest 62700 - Payroll Expenses:62710 - Gross Wages 62700 - Payroll Expenses:62720 Payroll Taxes 62700 - Payroll Expenses:62730 - FUTA Expense 62700. Payroll Expenses:62740 - SUTA Expense 63100. Postage 63600. Professional Fees:63610 - Accounting 64200 - Repairs:64210 - Building Repairs Trial Balance 2010 Thail Balance 2018 13,657.07 151.995 65 68 110.400.10 59 30 71 8.445 61 268.00 1.233.50 104.20 72 73 74 250.00 175.00 4 Merge S9 Cool for Forming the Det G1s . f A B c D E F G H 1 Dec 31, 19 2 Debit Credit 0.00 1.350.00 2,820.08 1,164.10 141.15 26400 80 75 64200 - Repairs:64220 . Computer Repairs 76 64200 - Repairs:64230 Equipment Repairs 77 64800 Tools and Machinery 78 55100 Utilities:65110 Gas and Electric 79 65100 Utilities: 65120. Telephone 65100 Ulilities:65130 Water 81 70100 Other Income 82 70200 Interest Income 83 TOTAL 84 85 86 87 88 146.00 229.16 1,225,000.48 1.225.000.48 1998 98 99 90 92 Trial Balance 2010 Tria Bance 2018 +

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