FIN - Nybrostrand Company
Question # 00028183
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Updated on: 10/13/2014 10:38 AM Due on: 10/13/2014
Additional information added in module 3
One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase.
The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 4
The company made a secondary offering of stock and raised an additional $150,000.
The company had already paid $15,000 in dividends before deciding on the offering.
The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest.
Nybrostrand Company
31-Dec-12
Trial Balance (accounts in alphabetical order)
Debit
Credit
Accounts payable
78,000
Accounts receivable
36,500
Cash
30,000
Common stock
10,000
Depreciation expense
24,350
Cost of goods sold
307,000
Equipment (net of depreciation)
415,000
Insurance
1,400
Inventory
34,000
Long-term debt
127,000
Marketing
4,500
Paid-in capital
50,000
Property taxes
16,900
Rent
28,000
Retained earnings
?
Revenues
586,000
Salaries
78,500
Utilities
6,700
Total
982,850
851,000
SLP Assignment Expectations
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement.
The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format
One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase.
The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for module 4
The company made a secondary offering of stock and raised an additional $150,000.
The company had already paid $15,000 in dividends before deciding on the offering.
The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest.
Nybrostrand Company
31-Dec-12
Trial Balance (accounts in alphabetical order)
Debit
Credit
Accounts payable
78,000
Accounts receivable
36,500
Cash
30,000
Common stock
10,000
Depreciation expense
24,350
Cost of goods sold
307,000
Equipment (net of depreciation)
415,000
Insurance
1,400
Inventory
34,000
Long-term debt
127,000
Marketing
4,500
Paid-in capital
50,000
Property taxes
16,900
Rent
28,000
Retained earnings
?
Revenues
586,000
Salaries
78,500
Utilities
6,700
Total
982,850
851,000
SLP Assignment Expectations
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement.
The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format
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Rating:
/5
Solution: FIN - Nybrostrand Company Solution