Question

Create a balance sheet (assets, liabilities, equity, liabilities + equity) for Tech Co using the following information:

Adjusted Trial Balance
As of December 31, 2014
	Debits	Credits
Cash	278,554,562
Accounts Receivable	128,102,723
Allowance for Doubtful Accounts		5,764,623
Inventory	1,438,773,206
Merchandise Purchases	2,363,146,864
Buildings	198,895,751
Accumulated Depreciation - Building		84,843,130
Equipment	104,891,998
Accumulated Depreciation - Equipment		42,768,575
Trademark	80,000
Accounts Payable		1,243,547,398
Interest Payable		2,258,179
Taxes Payable		9,015,728
Notes Payable		160,391,997
Bonds Payable		200,000
Premium on Bonds Payable		3,600
Dividends Payable		1,500,000
Unearned Sales Revenue		108,892,400
Unearned Consulting Revenue		15,000
Common Stock		32,000
Add'l Paid in Capital		8,853,900
Retained Earnings		230,336,598
Sales Revenue		3,300,237,000
Sales Discount	38,407
Salary Expense	234,555,520
Interest Expense	60,188,228
Advertising Expense	293,199,650
COGS	71,249,808
Bad Debt Expense	992,884
Depreciation Expense	25,990,526
Total	5,198,660,127	5,198,660,128

Answer 1

Ans.

INCOME STATEMENT
Sales	3,300,237,000
Less: Sales Discount	38,407
Net Sales	3,300,198,593
Less: Merchandise Purchases	2,363,146,864
Less: Cost of Goods Sold	71,249,808
Less : Other Expenses :
Salaries expense	234,555,520
Interest Expense	60,188,228
Advertising Expense	293,199,650
Bad Debt Expense	992,884
Depreciation	25,990,526
Net Income	250,875,113.00
Dividends	-
Addition to retained earnings	250,875,113.00

			BALANCE SHEET
Assets	Amount	Amount	Liabillities & Owner’s Equity	Amount	Amount
Current Assets			Current Liabilities
			Accounts payable		1,243,547,398
Cash		278,554,562	Unearned Sales Revenue		108,892,400
Accounts receivable	128,102,723		Unearned Consulting Revenue		15,000
Less : Allowance for doubtful accounts	5,764,623	122,338,100	Interest Payable		2,258,179
Inventory		1,438,773,206	Taxes Payable		9,015,728
			Dividend Payable		1,500,000
			Total		1,365,228,705
Total		1,839,665,868
			Long-term Liabilities
			Notes Payable		160,391,997
			Bond Payable	200,000
Fixed Assets			Add : Premium on Bonds payable	3,600	203,600
Tangible Fixed Assets			Total Liabilities		1,525,824,302
Building	198,895,752
Less: Accumulated Depreciation	84,843,130	114,052,622	Owner’s Equity
Equipment	104,891,998		Common Stock		32,000
Less: Accumulated Depreciation	42,768,575	62,123,423	Additional paid in capital		8,853,900
Intangible Fixed Assets			Total paid in capital		8,885,900
Trademark		80,000
Total		176,256,045	Retained Earnings		481,211,711
			Subtotal		490,097,611
			Total		490,097,611
Total Assets		2,015,921,913	Total Liabilities &Owner’s Equity		2,015,921,913

Statement of Retained Earnings
Beginning Balance	230,336,598.00
Add : Net Income	250,875,113.00
Less : Dividend Paid	-
Ending Retained Earnings	481,211,711.00

Note : There is a difference in Trial Balance of 1 so it is adjusted by increasing the balance of  Building. It may be possible that some other balance may be rectified to match the Trial Balance.