Question

Brockbank Research Corp.
December 31, 2018
Accounts Payable			$        46,160
Accounts Receivable			52,731
Accumulated Depreciation - Building			321,000
Accumulated Depreciation - Furniture, Fixtures & Equipment			23,000
Additional Paid-In Capital - Common Stock			215,000
Allowance for Bad Debts			1,731
Buildings			503,000
Cash			25,383
Common Stock			35,000
Furniture, Fixtures, and Equipment			132,800
Inventories, December 31, 2018			201,620
Land			6,000
Bond Sinking Fund			3,600
Trademark			5,000
Bonds Payable (due in 2020)			18,000
Notes Payable - Banks (due in 2018)			23,540
Prepaid Insurance			5,500
Salaries payable			20,000
Retained Earnings, January 1, 2018			225,800
Sales			467,000
Inventories, January 1, 2018			285,850
Purchases			185,200
Purchase Returns			28,000
Freight In			17,950
Sales Salaries and Commissions			34,300
Insurance Expense			6,090
Depreciation Expense - Building			6,100
Depreciation Expense - Furniture, Fixtures & Equipment			4,800
Interest Expense			700
Utility Expense			2,400
Miscellaneous Selling Expenses			2,200
Officer's Salaries Expense			29,400
Office Salaries Expense			22,500
Gain on Sale of Equipment			19,875
Dividends Paid			65,000
Hints:
1) You will need to solve for the Cost of Goods Sold needed on the Income Statement.
Use Example5.2a on page 5-16 as a guide.
2) You will need to classify the operating expenses correctly as either Selling expenses,
General and Administrative expenses, or Depreciation Expense.

1. Using General Ledger, you are to prepare the following financial statements in Excel.
2. Properly classified Balance Sheet
3. Multiple Step Income Statement
4. Statement of Shareholders’ Equity
5. For the year ended December 31, 2018, the income tax rate is 40%. Check figure: Income tax expense of $47,602

Answer 1