Balance Sheet-2
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Additional information added in module 2
- 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 2014 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 3
- The company made a secondary offering of stock and raised an additional $180,000 which includes $150,000 of Paid-in Capital.
- 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 down payment is $40,000 and a note to the bank covers the rest.
Nybrostrand Company |
||
31-Dec-14 |
||
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 |
982,850 |
Homework answers needed
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.
The submission should be at least 2 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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