Question

prepare a complete set of financial statements for Oh So Fake Company using the following adjusted trial balance. Make sure to use good formatting. Oh So Fake Company Adjusted Trial Balance December 31, 20XX Account Name Debit Credit Cash $ 400,300 Accounts receivable 370,100 Merchandise inventory 170,800 Office supplies 10,300 Prepaid rent 10,000 Furniture 63,000 Accumulated depreciation – Furniture $ 31,620 Equipment 197,500 Accumulated depreciation – Equipment 99,180 Goodwill 270,000 Accounts payable 60,300 Salaries payable 20,100 Interest payable 6,000 Unearned revenue 20,400 Notes payable, Long term * 144,000 LT Bond payable 180,000 Capital, Owner 220,200 Sales 2,470,000 Sales returns and allowances 100,000 Sales discounts 80,000 Cost of Goods Sold (COGS) 903,100 Interest revenue 20,100 Salaries expense 520,700 Rent expense 70,700 Utilities expense 50,800 Depreciation expense – Furniture 20,700 Supplies expense 20,200 Interest expense 20,900 Gain on sale of equipment 7,200 TOTALS: $ 3,279,100 $ 3,279,100 *$22,000 of the LT note will be paid within the following 12 months.

Answer 1

Income statement

Sales	2,470,000
Sales returns and allowances	- 100,000
Sales discount	- 80,000
Net sales		2,290,000
Cost of goods sold		- 903,100
Gross profit		1,386,900
Operating expenses:
Salaries expense	520,700
Rent expense	70,700
Utilities expense	50,800
Depreciation expense	20,700
Supplies expense	20,200
Total operating expenses		- 683,100
Operating profit		703,800
Other revenues:
Interest revenue		20,100
Gain on sale of equipment		7,200
Other expenses and losses:
Interest expense		- 20,900
Net income		$710,200

Balance sheet

Assets	$	Liabilities and stockholders' equity	$
Current assets		Current liabilities
Cash	400,300	Accounts payable	60,300
Accounts receivable	370,100	Salaries payable	20,100
Merchandise inventory	170,800	Interest payable	6,000
Office supplies	10,300	Unearned revenue	20,400
Prepaid rent	10,000	Notes payable (Current maturity)	22,000
Total current assets	961,500	Total current liabilities	128,800
Property, plant and equipment		Long term liabilities
Furniture	63,000	Note payable	122,000
Accumulated depreciation	(31,620)	Bond payable	180,000
Equipment	197,500	Total long term liabilities	302,000
Accumulated depreciation	(99,180)	Stockholders' equity
Goodwill	270,000	Capital	220,200
Net Property, plant and equipment	399,700	Retained earnings	710,200
		Total stockholders' equity	930,400
Total assets	1,361,200	Total liabilities and stockholders' equity	1,361,200