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Balance Sheet
We're continuing to analyze the same company as in modules 2 and 3.
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.
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Rating:
/5
Solution: Trident ACC201 module 3 SLP