The objective is to prepare a comprehensive balance sheet

QUESTION

The objective is to prepare a
comprehensive balance sheet and single-step income statement presented in good
form and derived from a list of various accounts. The amounts relative to each
account will be given and the student will learn to determine whether an
account is a balance sheet account or a temporary account that belongs to the
income statement. The accounts will be comprised of all the various
subgroupings in the balance sheet (current assets, investment, fixed assets,
intangibles, and other assets, as well as current liabilities, long-term
liabilities, and the equity sections). Guidelines include the following.

Obtain the list of accounts under the section Course
Project Listing of Accounts.
Determine which accounts belong to the balance sheet and
which accounts belong to the income statement.
Determine to which subgroup each account belongs.
Arrange the accounts in proper order and functionality.

Prepare a comprehensive balance sheet in good form.
Prepare a single-step income statement in good form.
Put the Course Project in the Dropbox for the project
in Week 8.

Course
Project Listing of Accounts

Accounts
Payable

197,532

Account
Receivable

165,824

Accrued
Interest on Notes Payable

500

Accrued
Liabilities

9,500

Accumulated
Depreciations

341,200

Additional
Paid-In Capital

37,500

Administrative
Expenses

350,000

Allowance
for Doubtful Accounts

1,850

Building

975,800

Cash

42,485

Common
Stock

400,000

Copyrights

105,000

Cost of
Goods Sold

1,000,000

Customer
Deposits (expected to be paid next year)

420

Deposits
With Vendors (based on a long-term purchase contract)

50,000

Depreciation
Expense (40% Selling, 60% Administrative)

100,000

Dividend
Income

30,000

Goodwill

100,000

Income
Tax Expense

82,250

Income
Taxes Payable

62,520

Interest
Revenue

25,000

Inventories

499,493

Investments
in Warren Co.

87,500

Land

125,000

Mortgage
Payable ($1,500 per month)

308,000

Notes
Payable to Banks

50,000

Notes
Receivable (due next year)

23,000

Patents

125,000

Preferred
Stock, 7%

300,000

Prepaid
Expenses

16,252

Rental
Income

50,000

Retained
Earnings

162,582

Selling
Expenses

300,000

Salaries
Payable

52,000

Sales
Discounts

120,000

Sales
Revenue

2,000,000

Securities
(available for sale) at Fair Market Value

28,250

Trademarks

80,000

Twenty-year,
12% Bonds, Due 1/1/2015

500,000

ANSWER

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