Prepare their Balance Sheet following these guidelines Incl

Prepare their Balance Sheet, following these guidelines ? Include separate asset and liability categories for those items that are current and non- current. Follow GAAP standards for the placement/location of each account. Include and label amounts on the statements per the standard

Solution

share hholder s equity

prefffered shares . (20*250) 5000

Common stock. (1800*15) 27000

Additional paid in capital

Common shares. 13000

Retained earnings . 21050

Total shareholders equity.   66050

income statement

sales. 226000

Less sales return allowance . 2500

Less sales tax payable. 3200

net sales. 220300

add- cost of ggoods sold. 100575

gross profit. 119725

expenses

Insurance expense. 520

Office supples exp. 900

rent exp. 4520

Salary exp . 88095

Utility exp. 5700

Income tax exp. 8190. 107925

total operating expenses. 11800

income

Gain from sale of building. 340000

net income. 351800

balancesheet

assets. Amt. LLiabiliyy. Amt

Current asset . Accounts payable. 12750

Accounts receivable. 2600. Bonds payable . 22500

Cash. 19200. Premiun bonds. 1758

Insurance exp. 520. Notes payable. 2500

Office supplies exp. 900. mortgage. 100000

Rent exp. 4520. Owners equiyy. 66050

Salary exp. 88095. Treasury stock. 2250

Utility exp. 5700 . Loan. 200000

Incometax exp . 890

Inventory . 17500

Total currebt asset.   139925

Fixes assets

Land. 39500

Office equpment . 41000

Less deprn. 12000. 29000

Retained earnings. 21050

Payout. 200000

Total . 429475. 407808