BUS 616, 2015, Quiz 1A
Question # 00076274
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Updated on: 06/17/2015 07:49 AM Due on: 06/17/2015
| BUS 616, 2015, Quiz 1A | |||||||||||||
| The trial balance for Domenico, Inc. as of December 31, 2014 is given below. | |||||||||||||
| Additional information: | |||||||||||||
| The restructuring liability is 60% current. The notes payable are due in 2018. | |||||||||||||
| The company accountant erroneously failed to record the expiration of prepaid insurance of $6,000. | |||||||||||||
| Noncontrolling interest in income is $12,500 | |||||||||||||
| No provision has been made for income taxes. Income tax expense is 30% of income from continuing operations before tax (round to nearest dollar). | |||||||||||||
| There were 100,000 common shares outstanding at all times during the year. | |||||||||||||
| Required: On the labelled tabs, prepare a balance sheet as of December 31, 2014 and an income statement for the year then ended. The financial statements should be in proper format. | |||||||||||||
| Accounts Payable | 1,07,619 | ||||||||||||
| Accounts Receivable | 2,15,310 | ||||||||||||
| Accrued Payables | 63,381 | ||||||||||||
| Accumulated Depreciation | 3,59,445 | ||||||||||||
| Additional Paid-in Capital | 82,568 | ||||||||||||
| Administrative Expense | 2,26,547 | ||||||||||||
| Allowance for Bad Debts | 8,400 | ||||||||||||
| Cash | 1,69,384 | ||||||||||||
| Common Stock | 20,000 | ||||||||||||
| Cost of Goods Sold | 8,53,427 | ||||||||||||
| Deferred Revenue (current) | 16,000 | ||||||||||||
| Dividends | 22,000 | ||||||||||||
| Goodwill | 1,80,000 | ||||||||||||
| Interest Expense | 62,000 | ||||||||||||
| Inventory | 4,72,911 | ||||||||||||
| Investments | 1,48,200 | ||||||||||||
| Loss on Discontinued Operations (net of tax) | 14,300 | ||||||||||||
| Non-controlling interest in net assets | 31,600 | ||||||||||||
| Notes Payable | 9,00,000 | ||||||||||||
| Plant and Equipment | 13,45,377 | ||||||||||||
| Preferred Stock | 10,000 | ||||||||||||
| Prepaid Insurance | 36,000 | ||||||||||||
| Restructuring Expense | 1,26,400 | ||||||||||||
| Restructuring Liability | 1,00,000 | ||||||||||||
| Retained Earnings, January 1, 2014 | 8,36,422 | ||||||||||||
| Sales | 15,57,360 | ||||||||||||
| Selling Expense | 1,43,945 | ||||||||||||
| Supplies | 14,665 | ||||||||||||
| Treasury Stock (common) | 62,329 | ||||||||||||
| 4092795 | 4092795 | ||||||||||||
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Rating:
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Solution: BUS 616, 2015, Quiz 1A