Question

I am asked to prepared the balance sheet from the information below.

Procrag Design Co. Accounts and Balances As at Oct 31, 2017
Accounts Payable		78,900
Accounts Receivable	31,690
Accumulated Depreciation – General Operating Assets		170,000
Bonds Payable		123,000
General Operating Assets	450,000
Cash	99,960
Cash Dividends – Common	19,375
Cash Dividends – Preferred	625
Common Shares		305,000
Cost of Goods Sold	546,100
Depreciation Expense	44,090
Gain on sale of assets from discontinued operations		77,000
General and Administrative Expenses	123,000
Income tax Expense	32,420
Interest Expense	19,000
Interest Payable		9,500
Interest Revenue		5,800
Inventory	164,000
Land	471,813
Operating loss for discontinued operations	35,000
Preferred Shares		125,000
Rent Expense	15,000
Retained Earnings		134,280
Sales Revenue		1,023,593
Total	$     2,052,073.00	$     2,052,073.00
Additional Info:
Weighted Average Number of Common Shares		100,000
Tax Rate		10%

Answer 1

Income Statement
Sales	1023593
Less: Cost of goods sold	546100
Gross margin	477493
Other income
Interest revenue	5800
Less: Expenses
Depreciation Expenses	44090
General and administrative expenses	123000
Rent expense	15000
income tax expense	32420
interest expense	19000
Total expenses	233510
net income before extraordinary gain/ loss from operations	249783
operating loss from discontinued operations	-35000
gain on sale of assets from discontinued operations	77000
Net income	291783
Less: Dividends
cash dividends - cpmmon stock	-19375
cash dividends-preferred stock	-625
Net income transferred to retained earnings	271783
Balance Sheet
	Amount	Amount
Assets
Currents Assets
Cash	99960
Accounts receivable	31690
Inventory	164000
Total current assets		295650
non current assets
Land	471813
General operating assets	450000
Less: Accumulated depreciation	-170000
Total Non current assets		751813
Toal Assets		1047463
Liabilities and sahreholder's Equity
Current liabilities
Accounts payable	78900
bonds payable	123000
interest payable	9500
Total current liabilities		211400
Non current liabilities		0
Shareholder's Equity
Preferred stock	125000
Common shares	305000
	430000
retained earnings	134280
Add:net income during the period	271783
Ending retained earnings	406063
Shareholder's Equity (430000+406063)		836063
Total liabilites and Shareholders Equity (211400+836063)		1047463