Question

A. Prepare an income statement (multiple step), balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co. presented below.

Balance sheet:                                                                                                  December 31

                                                                                                                2015                                      

Cash..........................................................     $52,000                                               

Accounts receivable (net)...........................       64,000                                               

Inventory..................................................     178,000                                               

Land..........................................................       78,800                                               

Equipment.................................................     504,000                                                   

TOTAL............................................ $876,800                                               

Accumulated depreciation..........................     $94,000                                               

Accounts payable.......................................       50,400                                               

Notes payable - short-term........................       67,200                                               

Notes payable - long-term..........................     178,000                                               

Common stock...........................................     420,000                                               

Retained earnings......................................       67,200                                               

TOTAL............................................ $876,800                         

Trial balance

December 31, 2016

.................................................................      DR                CR

Cash..........................................................     $60,000                                               

Accounts receivable (net)...........................       75,000                                               

Allowance for doubtful accounts……………………………………..4,500

Inventory..................................................     148,000                                               

Land..........................................................       58,800                                               

Equipment.................................................     620,000                                                   

              Accumulated depreciation..........................                      40,000                                 

Accounts payable.......................................                      48,700                              

Notes payable - short-term........................                      24,200                              

Notes payable - long-term..........................                     154,000                             

Common stock...........................................                     420,000                             

Retained earnings......................................                        67,200

Sales revenue............................................ 630,500

Cost of goods sold……………………………………….285,000

Salary expense…………………………………………….95000

Advertising expense……………………………………14,600

Depreciation expense………………………………….10,000

Bad debt expense……………………………………….2,500

Other expense…………………………………………….20,000

Additional data for 2016:

1.    Land was sold at its original cost.

2.    Equipment was purchased

3.    Notes were repaid

Answer 1