Purchase Solution

Preparing Balance Sheet, Income Statement, Cash Flow

Not what you're looking for?

Ask Custom Question

Please show the formula and how you got the answer!

2-25
Balance Sheet Preparation
From the following data, prepare a classified balance sheet for Taylorsville Construction Company at December 31, 2009.

Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 74,300
Accounts receivable . . . . . . . . . . . . . . . . . . . . . 113,500
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . 512,000
Owners' equity, 1/1/09 . . . . . . . . . . . . . . . . . . 314,300
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,600
Distributions to owners during 2009 . . . . . . . . 48,100
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250
Land . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 90,000
Mortgage payable . . . . . . . . . . . . . . . . . . . . . . 423,400
Net income for 2009 . . . . . . . . . . . . . . . . . . . . 109,450
Owners' equity, 12/31/09 . . . . . . . . . . . . . . . . ?

2/27
Income Statement Preparation
The following selected information is taken from the records of Pickard and Associates.
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 95,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . . 14,500
Cash . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 63,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . 31,500
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Income taxes (30% of income before taxes) . . . . ?
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . 5,100
Owners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Fees (revenues) . . . . . . . . . . . . . . . . . . . . . . . . . 476,000

1. Prepare an income statement for the year ended December 31, 2009. Assume that 11,000 shares of stock are outstanding.

2/32
Cash Flow Computations
From the following selected data, compute:
1. Net cash flow provided (used) by operating activities.
2. Net cash flow provided (used) by investing activities.
3. Net cash flow provided (used) by financing activities.
4. Net increase (decrease) in cash during the year.
5. The cash balance at the end of the year.
Cash receipts from:
Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,000
Investments by owners . . . . . . . . . . . . . . . . . . . . . . . 54,000
Sale of building . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Proceeds from bank loan . . . . . . . . . . . . . . . . . . . . . 60,000
Cash payments for:
Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,000
Utilities . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 3,000
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Rent . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 36,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,000
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Repayment of principal on loan . . . . . . . . . . . . . . . . . 40,000
Purchase of land . . . . . . . . . . . .. . . . . . . . . . . . 106,000
Cash balance at beginning of year . . . . . . . .. . . . . . . . $386,000

2/29
Retained Earnings Computations
During 2009, Edgemont Corporation had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2008, Edgemont had assets of $350,000, liabilities of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2009. No additional stock was issued. Compute the retained earnings on December 31, 2008, and 2009.

2/33
Cash Flow Classifications
For each of the following items, indicate whether it would be classified and reported under the operating activities (OA), investing activities (IA), or financing activities (FA) section of a statement of cash flows:
a. Cash receipts from selling merchandise
b. Cash payments for wages and salaries
c. Cash proceeds from sale of stock
d. Cash purchase of equipment
e. Cash dividends paid
f. Cash received from bank loan
g. Cash payments for inventory
h. Cash receipts from services rendered
i. Cash payments for taxes
j. Cash proceeds from sale of property no longer needed as expansion site

Purchase this Solution

Solution Summary

The solution shows how to prepare a classified balance sheet, an income statement, a statement of cash flows and classification of various transactions as investing, financing or operating activity

Solution Preview

Please see the attached file.

2-25
Balance Sheet Preparation
From the following data, prepare a classified balance sheet for Taylorsville Construction
Company at December 31, 2009.

Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 74,300
Accounts receivable . . . . . . . . . . . . . . . . . . . . . 113,500
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . 512,000
Owners' equity, 1/1/09 . . . . . . . . . . . . . . . . . . 314,300
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,600
Distributions to owners during 2009 . . . . . . . . 48,100
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250
Land . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 90,000
Mortgage payable . . . . . . . . . . . . . . . . . . . . . . 423,400
Net income for 2009 . . . . . . . . . . . . . . . . . . . . 109,450
Owners' equity, 12/31/09 . . . . . . . . . . . . . . . . ?

The balance sheet is below :
Taylorsville Construction
Balance Sheet
As on December 31, 2009
Assets
Current Assets
Cash 153,600
Accounts Receivable 113,500
Supplies 4,250
Total Current Assets 271,350
Land 90,000
Buildings 512,000
Total Assets 873,350
Liabilities and Owners Equity
Current Liabilities
Accounts Payable 74,300
Total Current Liabilities 74,300
Mortgages Payable 423,400
Total Liabilities 497,700
Owners Equity 375,650
Total Liabilities and Owners Equity 873,350

Owners Equity is
Opening Balance 1/1/09 314,300
Add: Net Income 109,450
Less: Distribution to owners (48,100)
Closing Balance 12/31/09 375,650

2/27
Income Statement Preparation
The following selected information is taken from the records of Pickard and Associates.
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . $ 143,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . 95,000
Advertising expense . . . . . . . . . . . . . . . . . . . . . . 14,500
Cash . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 63,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . 31,500
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Utilities expense . . . . . . ...

Purchase this Solution


Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Introduction to Finance

This quiz test introductory finance topics.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.