Some cash flow comes from 2018
Scenario: You are an accountant at Rock Castle Construction Your boss as asked that you create general purpose financial statements from a trual balance that he has created for you Addionally, the company is for sale and you need to draft a forter to potential buyets explaining the overall financial health and proteability of the business You should use several appropriate financial measure formulas as evidence (hine we covered a few of the many possible formulas ndescussion 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 know about proles Required: 1) Create the four general purpose financial statemenes for the year ende Dec 31, 2019 e Income statement Balance Sheet Statement of Owners Equitained Earnings Statement of Cash Flows 2) Wite a letter to potential buyers a a Aral BLUSA - Il - 299 19 D E F G 3 COME 1 2 3 4 5 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 10300 Savings 10100 Checking 10400 Petty Cash 11000 Accounts Receivable 1.2000 Undeposited Funds 12100 inventory Asset 12000 Employee Advances 13100 - Prepaid Insurance 13400 Retinage Receivable 1600 - SC 15000 Furniture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 - Construction Equipment 16900 Land 17000 Accumulated Depreciation 18700 - Security Deposits 20000 - Accounts Payable 2000 Quickbooks Credit Card 20000 Caio Credit Card 24000 Payroll L.20010 - Federal Withholding 24000 Payroll L20020FICA Payable 24000 Payroll 2400 AEC ya 20000 Payroll 3000 PUTA 20000 Payroll Lub20050 State Wholding C Dec 31, 19 DO 17,910:19 35,06843 755.05 92,707 93 2.600.00 30,683 38 832.00 4,050.00 3,70302 400000 34,320.00 783691 325,000.00 15,300.00 90,000.00 10.40 1.720.00 8 SS S S 1 2 153630 150,00 2.62 1366 0.00 10000 Trial Balince 2010 TH File Edit Insert Format Help . Anal BOSA E- E F G H B K OR 1 Dec 31,19 De CGI 1.650.00 99435.00 700.00 6321795 797.10 20181 52 53 54 55 56 57 5 59 60 51 62 63 54 65 66 57 68 69 70 71 12 73 74 75 76 50000 Job Expense54200 - Equipment Rental 56000 Job Expenses 54300 Job Materials 5000 Joh Expenses Permits and License 54000 Job Expense 4500 Subcontractors 50000 Job Expenses 4520 Freight & Delivery 54000 Job Expenses: 54599 Less Discounts Token food 50100. Automobile:0110 Fuel 60100 Auto 60120 - Insurance 60100 Automobile:60130. Repairs and Maintenance G300db 0600 Bank Service Charges 02.100 Insurance.62110 Disability Insurance 100 Insurance0720Lability insurance 62100 in 210 Work Comp 62.600 Interest Expense:62020 Loan Interest 2700 Payroll Expenses2710 Gross Wages 2700 Payroll 2720 Payroll Taxes 2700 Payroll Expenses 67730 FUTA Expense 2700 Payroll Epenses 62740 SUTA Expense 53100 Postage 3600 Professional Fem..620 Accounting 64200. Repar64210 - Tuilding Repairs 54200 - Repair20 Computer Repair 200-Fests:64230 - Equipment Repairs 44.95 1.500 2.050 24 2400.00 300.00 125.00 542.00 53059 13765707 151 995 66 11010010 3,856 26000 1.23350 10420 25000 175.00 000 135000 Trial Balance 2019 Thatch 2018 Anal 8 - BI USA ER D E F G G H Dec 31, 19 DEDE Credit 2,820,58 1 164 16 34115 264 00 146.80 229 16 L.225.000.63 225.000.48 B 1 2 77 54800 - Tools and Machinery 78 65100 - Utilities:65110 Gas and Electric 79 65100 Utilities:65120 - Telephone 80 55100 - Utilities:65130. Water 81 70100 Other Income 82 70200. Interest income 83 TOTAL 84 85 86 87 88 89 90 91 92 93 94 95 05 97 98 Aral BUSA D E F G H CRGIE 1 2 3 4 5 6 C Dec 31, 10 DU 15,48103 30.80.16 500.00 21.2493 18,25200 1271704 77000 10300 Savings 10100 Checking 10400 Petty cash 11000 Accounts Receivable 12000 Undeposited Funds 12100 metery Ass 12000 Employee Advances 23100 Prenadinsurance 13400 - Retainage Receivable 15000 Pure andet 15100 Vehicles 15000 Bundings and improvements 15300 Construction Equipment 1000 Land 17000 Accumulated Depreciation 15700 Security Deposits 20000 Accounts Payable 2000 Quick Credit Card 20000 Calor Credit Card 24000 Pyroll 2010 Federal Wholding 24000 Payroll 24020: FICA Payable 34000 P 24040FUTA 24000 Payroll L:24050 State Withholding 24000 Pro L200 SUTA Pwanie 24000 Pro L.20070S Disable 10 11 12 12 14 15 16 17 18 19 20 21 22 20 24 25 26 27 - 172.72 22.126.00 711,906 91 12500000 15.30000 90,000.00 110,34400 1.72000 13,100.00 000 15000 DO 000 000 000 000 Tel Banc 2010 File Edit Insert Format Help E D F G H 1 A K B C Dec 31,1 60 4 Credit 000 28 29 30 31 32 33 34 35 36 37 30 39 24000 Payroll Liabilities 2000 Worker's Compensation 29500 Sales Tax Payable 23000 Loan Vehicles (Van) 22100 - Loan Vehicles Utility Truck 2x200 Loan - Vehicles (Pickup Truck 20100 Loan Construction Equipment 25200 Loan - Fummarionice Equip 20700 - Note Payable Bank of Anycity 2000 - Mongage Office Building 30100 Capital Stock 12000 Retained Earnings 401.06Construction income: 40110 Design Income 401.00. Construction income:40130 Labor Income 00100 Construction Income Material income 10100 Construction Income 40150 Subcontracted Labor Income A0500 Reimbursement Incom6020 Permit Reimbursement income 50100 Cost of Goods Sold 50000 Job Expenses/54300 Job Materals S1000 Job Expenses 400 Permits and licenses 54000 Job Expenses $4500 Subcontractors 0:00 Automobile:01 Fuel 60100 Automobil.60120Insurance 80100 - Automobil: 60130. Repairs and Maintenance GOGOO Bank Service Changes 50900 Depreciation Expert 72.18 15200 52 19,9361 22,641 00 1434311 21.00000 3110052 29 203.00 39.27375 36,22397 340000 16.335.00 3602377 112.60650 335 00 5.620.96 12.17160 225.00 533000 171500 2.50 20 2.550.00 150.00 45 41 42 43 44 45 45 48 3 50 51 52 The 91 True Balance 2018 All BIU F B K D G H C Dec 21.16 Crem -N2338 53 54 55 56 57 58 59 60 61 62 62 64 55 66 67 68 09 70 71 22 73 74 75 76 77 62100. Insurance:62110 Disability insurance 62100 tisurance2120 Lisbility Insurance 62100 - Insurance:621.30 Work Comp 62000. Interest Expense 2420 Loan interest 63600 - Professional F360 Accounting 64200 Repairs:64220 Computer Repairs 54200 - Repairs:64230 Equipment Repairs 64800 Tools and Machinery 65100 - Ut65110 Gas and Electric 651005120 Telephone 65100 Uulits 5130 Water 70200 Interest Income TOTAL 600.00 5.092.00 300.00 705 40 250.00 71400 1.800.00 1.457.51 18143 O 00 20000 28103 SONGS That Balance Trial Balance 2018
