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You have been contacted by WWMD Corporation to assist them with the closeout of their year- end. Their family accountant of 35 years decided

You have been contacted by WWMD Corporation to assist them with the closeout of their year-
end. Their family accountant of 35 years decided that he wanted to start retirement a little early
this year. You are inheriting an adjusted trial balance which needs to be properly presented
into a set of GAAP financials. Here is what we know:
 You can assume that all account balances are accurate.
 This is the first year of operations.
 You will need to record a tax accrual. Assume a flat tax rate of 24%.
 The family accountant left you a love note indicating that the company had
recently issued 100, shares of $10 par value stock in exchange for a tract of
land.
 No footnote disclosures are needed.
 No dividends were paid this year.
 The loss on disposal of asset was the result of an asset being discarded. No
cash proceeds were received on this transaction.
 You can feel free to add any accounts that you deem necessary.
Each financial statement prepared in proper format is worth 5 points.
Your job is to complete the above and create a set of GAAP financial statements 



Cash                185,000.00


Accounts Receivable               715,000.00


Product Sales Revenue
                12,000,000

Stockholder Loans Payable
                       65,000

Inventory-Raw Materials               520,000.00


Inventory-Finished Goods               261,000.00


Land               147,000.00


Building & Improvements               403,000.00


Machinery & Equipment            1,312,000.00


Computer Equipment                 16,000.00


Furniture & Fixtures                 35,000.00


Transportation Equipment               155,000.00


Accounts Payable
                     620,000

Allowance for Doubtful Accounts
                       42,000

Accrued payroll taxes
                         6,500

Accrued Wages
                       67,000

Income taxes payable
                               -  

Line of credit
                     600,000

Current portion of LTD
                       42,000

Contra current portion of LTD                 42,000.00


Common Stock, $10 Par.   100,000 shares authorized.                     300,000

Stockholder Loan Receivable               215,000.00


Retained Earnings



Freight Charge Revenue
                     125,000

Sales Discounts                 80,000.00


Outbound Freight               155,000.00


Manufacturing Costs            5,350,000.00


Payroll Wages            2,900,000.00


Payroll Taxes               225,000.00


Freight - Inbound               146,000.00


Waste Disposal               120,000.00


Subcontract Labor                 78,000.00


Utilities               166,000.00


Uniform Service Expense                 25,892.00


Interest Revenue
                       20,000

Equipment Rental                 45,964.00


Insurance                 85,000.00


Health Care Insurance                 86,000.00


Trucking Expense               383,000.00


Sales Commissions               180,000.00


Bad Debt Expense                 45,000.00


Notes payable
                     420,001

Bank Service Charges                 23,000.00


Loss on disposal of assets                 65,000.00


Depreciation Expense                 42,000.00


Dues and Subscriptions                   3,600.00


8,000 shares of Treasury Stock                 45,000.00


Licenses and Permits                 13,000.00


Prepaid expenses                 25,000.00


Disc Ops - Closure of Plant
                     260,000

Advertising                 17,800.00


Alarm Billing                 14,600.00


Prepaid Insurance                 12,000.00


Repairs and Maintenance                 58,000.00


Telephone                   8,000.00


Travel                 36,300.00


Payroll Processing                   3,300.00


Accumulated Depreciation
                       42,000

Professional Fees                 95,000.00


Supplies expense                 35,000.00


6% Preferred Stock, $12 par.
                       30,000

Property Taxes                 52,045.00


Office Supplies                 14,000.00


Federal Income Tax                              -  



          14,639,501.00           14,639,501.00

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SOLUTION To prepare the GAAP financial statements for WWMD Corporation we will need to organize the provided account balances into the following financial statements 1 Income Statement 2 Statement of ... blur-text-image

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