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    Smiths Inc Dec 31 2011 Adjusted Trial Balance: fin stmts

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    Prepare a multiple step income statement, statement of retained earnings, and classified balance sheet with common-size financial information (balance sheet and income statement) based on the attached adjusted trial balance.

    Smith, Inc.
    Adjusted Trial Balance
    December 31, 2011

    Debit Credit
    Accounts receivable 304,000
    Accumulated depreciation - buildings 175,000
    Accumulated depreciation - vehicles 44,000
    Allowance for bad debts 1,000
    Buildings 406,000
    Copyrights 130,000
    Inventory 69,000
    Land 98,000
    Land held for speculation 170,000
    Last National Bank Checking 51,000
    Prepaid insurance 12,800
    Supplies 8,000
    Vehicles 153,000
    Accounts payable 73,000
    Bonds payable 400,000
    Interest payable 59,000
    Discount on bonds payable 83,800
    Notes payable (due in 3 years) 113,000
    Unearned rent 13,000
    Additional paid in capital, common stock 72,000
    Common stock ($10 par) 160,000
    Dividends paid 85,000
    Retained earnings, Janaury 1 164,000
    Treasury stock 35,000
    Rent revenue 84,000
    Sales 1,711,600
    Sales discounts 103,000
    Advertising expense 73,000
    Commissions paid 123,000
    Cost of goods sold expense 472,000
    Depreciation expense 72,000
    Insurance expense 9,000
    Interest expense 11,000
    Loss on sale of equipment 41,000
    Salaries expense 492,000
    Sales entertainment expense 46,800
    Supplies used 21,200
    Totals 3,069,600 3,069,600

    Income taxes are 30% and have not been recorded or paid. On January 1, there were 10,000 shares
    of common stock outstanding. There were no stock transactions during the year.

    Check figures: income from operations $299,600 net income $232,120; total assets $1,181,800; taxes payable $99,480.

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    Your tutorial is in Excel, attached. Click in cells to see the ...

    Solution Summary

    Your tutorial is in Excel, attached. Click in cells to see the computations. You have a formal multi-step income statement, classified balance sheet and statement of changes in retained earnings with titles and subtotals as required. Common sizing means to add percentages and these are done for you.

    $2.19