Question

Instruc(ons

Prepare a classified balance sheet, mul(-step income statement and statement of

cash flows for the year ending 12/31/2018.

The trial balances for the beginning of the year and end of the year, as well as

addi(onal informa(on, are provided in the peach box on the next worksheet.

The name of the company is Rockford Plumbing Supply, Inc.

Final (Ending) Trial Balance - 12/31/2018					Beginning Trial Balance - post closing 12/31/2017
Account	Name	Debit	Credit		Account		Name	Debit	Credit
101	Cash	431,794			101		Cash	279,930
105	Petty Cash	150			105		Petty Cash	150
112	Accounts Receivable	464,550			112		Accounts Receivable	317,420
113	Allowance for Doubtful Accounts		40,178		113		Allowance for Doubtful Accounts		4,580
115	Notes Receivable	0			115		Notes Receivable	-
120	Inventory	569,671			120		Inventory	531,960
126	Supplies	3,680			126		Supplies	2,320
130	Prepaid Insurance	11,020			130		Prepaid Insurance	11,020
131	Prepaid Rent	25,410			131		Prepaid Rent	25,410
135	Other Assets	145,000			135		Other Assets	145,000
140	Land	43,000			140		Land	43,000
145	Buildings	306,000			145		Buildings	306,000
146	Accum. Depr. Buildings		78,040		146		Accum. Depr. Buildings		73,040
151	Equipment	63,900			151		Equipment	32,800
152	Accum. Depr. Equipment		21,200		152		Accum. Depr. Equipment		13,200
163	Trucks	60,400			163		Trucks	78,400
164	Accum. Depr. Trucks		41,540		164		Accum. Depr. Trucks		39,540
200	Bank Line of Credit		15,000		200		Bank Line of Credit		-
201	Accounts Payable		357,600		201		Accounts Payable		126,850
214	FICA Taxes Payable		1,530		212		FICA Taxes Payable		1,787
215	Income Taxes Payable		125,000		214		Income taxes payable		-
216	Federal Withholding Taxes Payable		1,967		215		Federal Withholding Taxes Payable		9,573
218	State Withholding Taxes Payable		2,901		216		State Withholding Taxes Payable		2,486
224	FUTA Taxes Payable		400		218		FUTA Taxes Payable		400
226	SUTA Taxes Payable		2,600		224		SUTA Taxes Payable		2,600
230	Interest Payable		23,261		226		Interest Payable		-
268	Dividends Payable		0		230		Dividends Payable		-
270	Notes Payable		417,606		250		Notes Payable		422,606
273	Bonds Payable		275,000		268		Bonds Payable		275,000
311	Discount on Bonds Payable	6,400			270		Discount on Bonds Payable	6,400
317	Common Stock		189,000		273		Common Stock		189,000
320	Paid-in Capital in Excess of Stated Value		256,400		311		Paid-in Capital in Excess of Stated Value		256,400
330	Retained Earnings		362,748		317		Retained Earnings		362,748
332	Treasury Stock				320		Treasury Stock	-
401	Dividends	50,000
412	Sales Revenue		5,433,396				Total	1,779,810	1,779,810
414	Sales Returns and Allowances	14,060
505	Sales Discounts	115,459
610	Cost of Goods Sold	3,995,710
612	Advertising Expense	7,178
631	Bad Debt Expense	1,120
644	Supplies Expense	1,540
711	Freight-out	18,542
726	Depreciation Expense	23,000
730	Salaries and Wages Expense	943,752
732	Payroll Tax Expense	83,681
820	Utilities Expense	16,669
905	Interest Revenue		3,150
921	Interest Expense	47,831
999	Loss on Disposal of Plant Assets	2,000
	Income Tax Expense	197,000
Total
		7,648,517	7,648,517
	Addi>onal informa>on: A truck was sold for cash proceeds of $8,000. The increase in equipment was due to purchases of equipment. The decrease in debt is due to re-payments. The por>on of the Notes and Bonds Payable that will become due next year is $10,000.

Answer 1

Balance Sheet of Rockford Plumbing Supply, Inc.
for the year ending 31/12/2018
Particulars	Amount $	Amount $
Assets
Current Assets
Cash incl Petty cash		4,31,944
Accounts Receivable	4,64,550
Less: Allowance for Doubtful Debts	40,178	4,24,372
Inventory		5,69,671
Merchandise
Office Supplies		3,680
Prepaid Expenses		36,430
Investments		-
Other Assets		1,45,000
Plant Property and Equipment
Land		43,000
Building	3,06,000
Less: Depreciation	78,040	2,27,960
Trucks	60,400
Less: Depreciation	41,540	18,860
Equipment	63,900
Less: Depreciation	21,200	42,700
Total		19,43,617
Liabilities
Current Liabilities
Accounts Payable		3,57,600
Bank Line of credit		15,000
Taxes Payable		1,34,398
Interest Payable		23,261
Long Term Liabilities
Bonds Payable less discount		2,68,600
Notes Payable		4,17,606
Owners Equity
Common Stock		1,89,000
Paid In Capital - Excess of Par		2,56,400
Retained Earnings	3,62,748
Loss from Current year	30,996
Cash Dividend	50,000	2,81,752
Total		19,43,617

Income Statement of Rockford Plumbing Supply, Inc.
for the year ending 31/12/2018
Particulars	Amount $	Amount $
Sales Revenue
Sales	54,33,396
Less: Sales discount	1,15,459
Less: Sales Returns	14,060
Net Sales Revenue		53,03,877
Cost of Goods Sold		39,95,710
Gross Profit		13,08,167
Advertising Expense	7,178
Bad Debt Expense	1,120
Supplies Expense	1,540
Freight-out	18,542
Depreciation Expense	23,000
Salaries and Wages Expense	9,43,752
Payroll Tax Expense	83,681
Utilities Expense	16,669
Interest Expense	47,831
Loss on Disposal of Plant Assets	2,000	11,45,313
		1,62,854
Other Income & Expenses
Interest Revenue		3,150
Income before income tax		1,66,004
Income Tax Expense		1,97,000
Net Income for the Year		-30,996