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Balance Sheet/Single Step Income Statement

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To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles, and Other Assets, as well as Current Liabilities, Long-term Liabilities, and the Equity sections). Guidelines:

- Obtain the list of accounts under the section Course Project Listing of Accounts
- Determine which accounts belong to the Balance Sheet and which accounts belong to the Income Statement
- Determine to which sub-group each account belongs
- Arrange the accounts in proper order and functionality
- Prepare a Comprehensive Balance Sheet in good form
- Prepare a Single-step Income Statement in good form

Listing of Accounts

Accounts Payable 197,532
Account Receivable 165,824
Accrued Interest on Notes Payable 500
Accrued Liabilities 9,500
Accumulated Depreciations 341,200
Additional Paid-in Capital 37,500
Administrative Expenses 350,000
Allowance for doubtful accounts 1,850
Building 975,800
Cash 42,485
Common Stock 400,000
Copyrights 105,000
Cost of Goods Sold 1,000,000
Customer Deposits (expected to be paid next year) 420
Deposits with Vendors (based on a long-term purchase contract) 50,000
Depreciation Expense (40% - Selling,60% - Administrative) 100,000
Dividend Income 30,000
Goodwill 100,000
Income Tax Expense 82,250
Income Taxes Payable 62,520
Interest Revenue 25,000
Inventories 499,493
Investments in Warren Co. 87,500
Land 125,000
Mortgage Payable ($1,500 per month) 308,000
Notes Payable to Banks 50,000
Notes Receivable (due next year) 23,000
Patents 125,000
Preferred Stock, 7% 300,000
Prepaid Expenses 16,252
Rental Income 50,000
Retained Earnings 162,582
Selling Expenses 300,000
Salaries Payable 52,000
Sales Discounts 120,000
Sales Revenue 2,000,000
Securities (available for sale)-at fair Market value 28,250
Trademarks 80,000
Twenty-year, 12% Bonds, due 1/1/2013 500,000

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Solution Preview

Your tutorial is in excel, attached. Each cell in the financial ...

Solution Summary

Your tutorial is in excel, attached. Each cell in the financial statement links back to the original data. The amounts for the balance sheet are colored yellow. The income statement accounts are blue. Debits and credits are shown for you (although optional).