Homemade Hams Inc Adjusted Trial Balance December 31 2016 Am

Homemade Hams, Inc.

Adjusted Trial Balance

December 31, 2016

(Amounts in thousands)

Account

Debit

Credit

Cash

$3,900

Accounts receivable

1,400

Inventories

2,300

Prepaid expenses

1,900

Property, plant, and equipment

16,900

Accumulated depreciation-property, plant, and equipment

$2,800

Other assets

9,600

Accounts payable

7,600

Income tax payable

500

Other liabilities

2,600

Common stock

14,500

Retained earnings (beginning, December 31, 2015)

5,900

Dividends

1,600

Sales revenue

42,000

Cost of goods sold

25,500

Selling, administrative, and general expenses

10,300

Income tax expense

2,500

Total

$75,900

$75,900

. Prepare Homemade Hams, Inc.\'s single-step income statement and statement of retained earnings for the year ended December 31, 2016, and its balance sheet on that date Assets Cash Accounts receivable Inventories Prepaid expenses Property, plant and equipment Less: Accumulated depreciation-property, plant, and equipment Other assets Total assets Choose from any list or enter any number in the input fields and then click Check Answer

Solution

Solution: 1. Homemade Hams, Inc. Income Statement For the Year Ended December 31, 2016 (Amounts in thousands) Revenues: Sales revenue 42,000 a Expense: Cost of goods sold 25,500 b Selling, administrative, and general expense 10,300 c Total expenses 35,800 d=b+c Income before tax 6,200 e=a-d Income tax expense 2500 f Net income 3,700 g=e-f 2. Homemade Hams, Inc. Statement of Retained Earnings For the Year Ended December 31, 2016 (Amounts in thousands) Retained earnings, December 31, 2015 5,900 a Add : Net income 3,700 b from above cal. Less: Dividends 1,600 c Retained earnings, December 31, 2016 8,000 d=a+b-c 3. Homemade Hams, Inc. Balance Sheet For the Year Ended December 31, 2016 (Amounts in thousands) Assets Cash 3,900 a Accounts receivable 1400 b Inventories 2300 c Property, plant, and equipment 16900 Less: Accumulated depreciation-property, plant, and equipment -2,800 14,100 d Prepaid expenses 1900 e Other assets 9,600 f Total assets 33,200 g=a+b+c+d+e+f Liabilities Accounts payable 7,600 h Income tax payable 500 i Other liabilities 2,600 j Total liabilities 10,700 k=h+i+j Stockholders\' Equity Common stock 14,500 l Retained earnings 8,000 m= from cal. in 2. Total stockholders\' equity 22,500 n=l+m Total liabilities and stockholders\' equity 33,200 o=k+n Please feel free to ask if anything about above solution in comment section of the question.