Question

The ledger of Articulation Systems Inc. showed the following balances after adjustment, but before closing, on December 31, 2018, the end of the current year (all accounts have normal balances):

Insurance expense 11000
Sales returns and allowances 22500
Bad debt expense 6000
Accounts payable 81000
Accounts receivable 108590
Allowance for doubtful accounts (also known as the allowance for bad debt) 8500
Accumulated depreciation – equipment 27740
Depreciation expense 1200
Interest revenue 2100
Cash 80470
Common stock (10,000 shares outstanding) 100000
Cost of goods sold 598550
Dividends declared (not yet paid) 18000
Equipment 139450
General expenses 113250
Dividends payable 2000
Sales discounts 23000
Interest expense 5600
Paid-in capital in excess of par 110000
Marketable Securities 12000
Merchandise inventory 154250
Prepaid insurance 11225
Salaries expense 42100
Retained earnings ?
Dividend Revenue 10000
Salaries Payable 12350
Sales 974500
Selling expenses 129210
The president of Articulation Systems Inc., has asked you to develop a flexible financial statement package, using Excel that includes:
• a data entry sheet
• an adjusted trial balance,
• a single-step income statement,
• a multi-step income statement,
• a statement of retained earnings,
• a classified balance sheet, and
• a post-close trial balance

Additional Instructions: You can ignore taxes in this project. Each statement must be on one sheet in the file and this file should allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the first sheet of the file (book) – data entry sheet. Include percentages in the Multi-step Income Statement (vertical analysis) i.e. gross profit percentage, % of selling expenses to sales, etc

Answer 1

Trial Balance and Calculation of Retained Earning
Particulars	Debit	Credit
Insurance Expense	11,000
Sales Return and Allowance	22,500
Bad Debts Expense	6,000
Account Payable		81,000
Accounts Receivables	1,08,590
Allowance for Bad debts		8,500
Accumulated Depreciation		27,740
Depreciation Expense	1,200
Interest Revenue		2,100
cash	80,470
Common Stock - Shares		1,00,000
COGS	5,98,550
Dividend Declared Not yet paid		18,000
Equipment	1,39,450
General Expense	1,13,250
Dividend payable		2,000
Sales discounts	23,000
Interest Expense	5,600
paid in capital in excess of par		1,10,000
marketable Securities	12,000
Merchandise Inventory	1,54,250
Prepaid Insurance	11,225
Salaried Expense	42,100
Retained Earning		1,12,205
Dividend Revenue		10,000
Salaries payable		12,350
Sales		9,74,500
Selling Expense	1,29,210
	14,58,395	14,58,395