Smith Incorporation

List of Accounts

As the accountant for Smith Incorporation, it is your job to prepare the companys income statement and balance sheet. Use the accounts listed below to construct the statements. Assume that the tax rate is 35%.

Bonds Payable 80,000

Accounts Receivable 130,900

Goodwill 100,000 Land 3,500,000

Equipment & Vehicles 2,000,000

Notes Receivable 91,300

Insurance Expenses 65,000

Accounts Payable 24,000

Interest Expenses 26,500

Common Stock 4,239,350

Depreciation 700,000

Net Sales 3,000,000

Ending Inventory 240, 500

Notes Payable (Long-Term) 410,000

Beginning Inventory 210.500

Retained Earnings 3,239,350

Advertising Expense 200,000

Cash 150,000

Salaries 250,000

Short-Term Notes Payable 20,000

Merchandise Purchased (For Inventory) 450,000

Buildings 2,500,000

Rent 45,500

Utilities 50,000