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Common Stock and Retained Earnings

1. Using the EPSICO, INC Excel Spreadsheet below called " EPSICO, INC BS"
Please complete the Balance Sheet for December 31, 2010 Knowing the following:

Cash: as of 12/31/10 it increased by $8
Accounts Receivable: Decreased by $10 in July but increased by $16 by the end of the year.
Inventory: Due to an error in purchasing, the Inventory increased by 10% in the spring.
The sales department was able to reduce the inventory by $12 as of December 31, 2010.
Land: balance has not been increased with any other purchases
However, the overall market shows an increase in real estate of 15%.
Equipment: New equipment for $15 has been purchased in 2010
Note Payable: Increased by $9 as a result of a short term Bank Note
Accounts payable: Increased by $13
Long Tern debt: Has been paid down by 25%
Net income: the Income statement (IS) shows $26
Dividends paid: the Income statement (IS) shows $8
Explain and show how you got the Retained Earnings for 2010
Hint: Look for the End. Bal. RE in the 2009 BS.
The End. Bal. RE of 2009 becomes the Beg. Bal. RE for 2010
(Show and use the formulas)

FILL IN THE BLANKS (Yellow sections)
EPSICO, INC.
Consolidated Balance Sheets (MM)
December 31,2010
2010 2009 2010 2009
ASSETS LIABILITY
Current Assets Current Liabilities
Cash $30.00 Note Payable $ 40.00
Accounts Receivable $120.00 Accounts Payable $110.00
Merchandise Inventory $230.00

Total Current Assets $380.00 Total Current Liabilities $150.00

Long term Debt $ 80.00

Total Liabilities $230.00

Property, Plant and Equipment Owners' Equity
Land $25.00 Common Stock $ 200.00 $200.00
Equipment $375.00 Retained Earnings $190.00
Less Accumulated depreciation ($180.00) ($160.00)

Total Property, Plant and Equipment $240.00 Total Owners' Equity $390.00

TOTAL ASSETS $620.00 TOTAL LIABILITIES & OWNERS' EQUITY $620.00

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Check the attached sheet.

1. Using the EPSICO, INC Excel Spreadsheet below called " EPSICO, INC BS"
Please complete the Balance Sheet for December 31, 2010 Knowing the following:

Cash: as of 12/31/10 it increased by $8
Accounts Receivable: Decreased by $10 in July but increased by $16 by the end of the year.
Inventory: Due to an error in purchasing, the Inventory increased by 10% in the spring.
The sales department was able to reduce the inventory by $12 as of December 31, 2010.
Land: balance has not been increased with any other purchases
However, the overall market shows an increase in real ...

Solution Summary

The common stocks and retained earnings are provided.

$2.19