We?re continuing to analyze the same company as in modules 2 and 3. Additional information added in module 3: One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase. The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2013 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count. Additional information for module 4: The company made a secondary offering of stock and raised an additional $150,000. The company had already paid $15,000 in dividends before deciding on the offering. The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest. Nybrostrand Company 31-Dec-13 Trial Balance (accounts in alphabetical order) Debit Credit Accounts payable $ 78,000 Accounts receivable $ 50,000 Cash 50,000 Common stock 10,000 Depreciation expense 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt 127,000 Marketing 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 50,000 Utilities 6,700 Total 987,850 851,000 Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement. The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format. More information is provided on the attachment provided.
Here is the problem: Additional information added in module 3: One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase. The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2013 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count. Additional information for module 4: The company made a secondary offering of stock and raised an additional $150,000. The company had already paid $15,000 in dividends before deciding on the offering. The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest. Nybrostrand Company 31-Dec-13 Trial Balance (accounts in alphabetical order) Debit Accounts payable Accounts receivable Cash $ 78,000 $ 50,000 50,000 Common stock Depreciation expense Credit 10,000 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt Marketing 127,000 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 50,000 Utilities 6,700 Total 987,850 851,000 Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement. The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format. Below is the additional information: Below find the trial balance for Nybrostrand Company. Prepare an income statement and balance sheet in good format. After you have completed the two statements comment on the success of the company. Support your answer with information from the financial statements you just prepared. Nybrostrand Company 31-Dec-13 Trial Balance (accounts in alphabetical order) Debit Accounts payable Accounts receivable Cash $ 78,000 $ 50,000 50,000 Common stock Depreciation expense Credit 10,000 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt 127,000 Marketing 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 50,000 Utilities 6,700 Total 987,850 851,000 We are using the same company as in the second module. However, you need to consider some additional information. One client had indicated that they were interested in purchasing $42,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase. The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2013 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count. Nybrostrand Company 31-Dec-13 Trial Balance (accounts in alphabetical order) Debit Accounts payable Accounts receivable Cash Common stock Credit $ 78,000 $ 50,000 50,000 10,000 Depreciation expense 24,350 Cost of goods sold 307,000 Equipment (net of depreciation) 415,000 Insurance 1,400 Inventory 34,000 Long-term debt Marketing 127,000 4,500 Paid-in capital 50,000 Property taxes 16,900 Rent 28,000 Retained earnings ? Revenues 586,000 Salaries 50,000 Utilities 6,700 Total 987,850 851,000 Prepare an income statement for the company in good format. Always include the name of the company and the period covered in the title. Don't forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept. The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format
