Debit CreditCash $ 197,000Sales Revenue $ 8,100,000Debt Investments (trading) (at cost, $145,000) 153,000Cost of Goods Sold...

Debit CreditCash $ 197,000Sales Revenue $ 8,100,000Debt Investments (trading) (at cost, $145,000) 153,000Cost of Goods Sold 4,800,000Debt Investments (long-term) 299,000Equity Investments (long-term) 277,000Notes Payable (short-term) 90,000Accounts Payable 455,000Selling Expenses 2,000,000Investment Revenue 63,000Land 260,000Buildings 1,040,000Dividends Payable 136,000Accrued Liabilities 96,000Accounts Receivable 435,000Accumulated Depreciation—Buildings 152,000Allowance for Doubtful Accounts 25,000Administrative Expenses 900,000Interest Expense 211,000Inventory 597,000Gain (extraordinary) 80,000Notes Payable (long-term) 900,000Equipment 600,000Bonds Payable 1,000,000Accumulated Depreciation—Equipment 60,000Franchises 160,000Common Stock ($5 par) 1,000,000Treasury Stock 191,000Patents 195,000Retained Earnings 78,000Paid-in Capital in Excess of Par 80,000 Totals $12,315,000 $12,315,000E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December 31, 2014.3InstructionsPrepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes.)

Solutions

Expert Solution

All working forms part of the answer
First, the balance of Net Income that is to be transferred to retained earnings is to be computed in order to prepare balance Sheet

Revenues:
Sales Revenue	8100000
Investment revenue	63000
Gain (Extra ordinary)	80000
Total revenue (A)	$8243000

Expenses:
Cost of Goods Sold	4800000
Selling expenses	2000000
Administrative expense	900000
Interest expense	211000
Total expenses (B)	$7911000

Net Income transferred to retained Earnings (A - B)	$332000

Balance Sheet, as asked is provided below

ASSETS		LIABILITIES & STOCKHOLDERS' EQUITY
Current Assets:	$	Current Liabilities:	$
Cash	197000	Notes Payable (short term)	90000
Debt Investments (trading)	153000	Accounts payable	455000
Accounts receivables, less Allowances $25000	410000	Dividends payable	136000
Inventory	597000	Accrued Liabilities	96000
Total Current Assets	1357000	Total Current Liabilities	777000

Long Term Assets:		Long Term Liabilities:
Buildings	1040000	Notes payable (Long term)	900000
Less: Accumulated Depreciation Building	-152000	Bonds Payable	1000000
Equipment	600000	Total Long Term Liabilities	1900000
Less: Accumulated Depreciation-Equipment	-60000
Land	260000	STOCKHOLDERS' EQUITY
Debt Instruments (long term)	299000	Common Stock ($5 par)	1000000
Equity Investments (long term)	277000	paid in capital in excess of Par	80000
Total Long Term Assets	2264000	Retained Earnings [78000+332000]	410000
		Total	1490000
Intangibles Assets:		Less: Treasury Stock	-191000
Franchises	160000	Total Stockholder's Equity	1299000
patents	195000
Total Intangible Assets	355000

TOTAL ASSETS	$3976000	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$3976000

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The following information from Jefferson Company’s operations is available: Administrative expenses $145,000 Cost of goods sold...

The following information from Jefferson Company’s operations is available: Administrative expenses $145,000 Cost of goods sold 928,000 Sales revenue 1,850,000 Selling expenses 174,000 Interest expense 14,000 Loss from operations of discontinued segment 120,000 Gain on disposal of discontinued segment 90,000 Income taxes: Amount applicable to ordinary operations 125,000 Reduction applicable to loss from operations of discontinued segment 22,000 Amount applicable to gain on disposal of discontinued segment 15,000 Required a. Prepare a multiple-step income statement. (Disregard earnings per share amounts.)...

Cost of goods sold:

ABC Corporation reported the following data for the month of January: Inventories: Beginning Ending Raw materials 46,000 34,000 Work in process 31,000 29,000 Finished goods 27,000 55,000 Additional information: Raw materials purchases 79,000 Direct labor cost 93,000 Manufacturing overhead cost incurred 54,000 Indirect materials included in manufacturing overhead cost incurred 8,000 Manufacturing overhead cost applied to Work in Process 57,000 Calculate cost of goods sold during the month of January?

Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods...

Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods sold 190,000 Salaries expense 125,000 Rent expense 18,000 Depreciation expense 25.000 Interest expense 3.200 Advertising expense 1.700 Totals 877000 Credit Accumulated depreciation-equipment 130,000 Accounts payable 35,000 Notes payable-due in three months 32,000 Salaries payable 4,000 Interest payable 1,000 Common stock 230,000 Retained earnings 45,000 Sales revenue 400,000 Totals 877000 3) Prepare the closing entries for China Tea Company for the year ended December 31,...

Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods...

Debit Cash 10,600 Accounts receivable 145,000 Prepaid rent 6.500 Inventory 27,000 Equipment 325,000 Costs of goods sold 190,000 Salaries expense 125,000 Rent expense 18,000 Depreciation expense 25.000 Interest expense 3.200 Advertising expense 1.700 Totals 877000 Credit Accumulated depreciation-equipment 130,000 Accounts payable 35,000 Notes payable-due in three months 32,000 Salaries payable 4,000 Interest payable 1,000 Common stock 230,000 Retained earnings 45,000 Sales revenue 400,000 Totals 877000 5) Prepare a classified balance sheet for China Tea Company as of December 31, 2018.

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of...

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? Multiple Choice Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory Cost of goods manufactured = Total manufacturing costs + Ending work in process...

1. To adjust a company’s LIFO cost of goods sold to FIFO cost of goods sold...

1. To adjust a company’s LIFO cost of goods sold to FIFO cost of goods sold the ending LIFO reserve is added to LIFO cost of goods sold. the ending LIFO reserve is subtracted from LIFO cost of goods sold. an increase in the LIFO reserve is subtracted from LIFO cost of goods sold. a decrease in the LIFO reserve is subtracted from LIFO cost of goods sold. 2. All of the following statements are true regarding the LIFO reserve...

Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3)During the year, TRC Corporation has the following inventory transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

The following projections relate to two recently merged firms: Revenue = $7,280,000 Cost of Goods Sold...

The following projections relate to two recently merged firms: Revenue = $7,280,000 Cost of Goods Sold (without operating synergy) = 88% of revenue Cost of Goods Sold (with operating synergy) = 85% of revenue Depreciation Expense (not included in the Cost of Goods Sold) = $380,000 Tax Rate = 40% Change in Working Capital = $26,000 Capital Spending = $220,000 Cost of Capital = 12.50% Expected perpetual growth rate = 4.50% After achieving operating synergy, the combined firms can reduce...

A company reports sales revenue of $314 million, cost of goods sold of $187 million, selling...

A company reports sales revenue of $314 million, cost of goods sold of $187 million, selling and administrative expenses of $77 million, depreciation of $20 million, and interest expense of $5 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

A company reports sales revenue of $313 million, cost of goods sold of $183 million, selling...

A company reports sales revenue of $313 million, cost of goods sold of $183 million, selling and administration expenses of $79 million, depreciation of $20 million and interest expense of $9 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

Subjects