ACCT 212 Lecture Notes - Lecture 4: Retained Earnings, Current Asset, Income Statement
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1. Produce a balance sheet for a company that distinguishesbetween current and non-current assets and liabilities.
2. Create a balance sheet from a trial balance.
3. Create a comparison of net income based on different methods ofinventory accounting.
4. Analyze a statement of cash flows and show where each line itemcan be found or calculated from the other financialstatements.
5. Prepare a full analysis of key financial ratios for a companyand state conclusions about the financial strength of the companycompared to industry ratios.
| Create a BalanceSheet from the trial balance: | ||||
| Debits | Credits | Classification | ||
| Cash | 300,000.00 | Current asset | ||
| Sales | (10,000,000.00) | Income statement | ||
| Cost of Goods Sold | 7,000,000.00 | Income statement | ||
| Selling Expenses | 500,000.00 | Income statement | ||
| Other income | (50,000.00) | Income statement | ||
| Administrative expenses | 350,000.00 | Income statement | ||
| Interest Expenses | 12,500.00 | Income statement | ||
| Land | 300,000.00 | non-current asset | ||
| Building | 2,000,000.00 | non-current asset | ||
| Long Term bond payable | (550,000.00) | non-current liability | ||
| Accrued Liabilities | (50,000.00) | current- liability | ||
| Accumulated Depreciation Buildings | (250,000.00) | non-current asset | ||
| Equipment | 750,000.00 | non-current asset | ||
| Receivables | 100,000.00 | current asset | ||
| Allowance for doubtful accounts | (7,500.00) | current asset | ||
| Accumulated depreciation equipment | (125,000.00) | non-current asset | ||
| Common Stock | (200,000.00) | equity | ||
| Payables | (115,000.00) | current Liability | ||
| Inventories | 200,000.00 | current asset | ||
| Prepaid Expenses | 50,000.00 | current asset | ||
| Retained Earnings | (215,000.00) | equity | ||
| 11,562,500.00 | (11,562,500.00) | |||
| Assets | Equity and Liabilities | |||||||||
| Current Assets | Current Liabilities | |||||||||
| Total Current Assets | - | Total Current Liabilities | - | |||||||
| Total long term Liabilities | - | |||||||||
| Total property plant and equipment | - | |||||||||
| Total Equity | - | |||||||||
| Total Assets | - | Total Equity and liabilities | - | |||||||
Claire Corporation task and prepare the following:
An Income Statement
A Statement of Retained Earnings
A Balance Sheet
The Claire Corporation
Claire Corporation builds foundations for churches and grottos in Perugia, Italia. The following alphabetical list shows Claireâs account balances as of April 30, 2014:
Accounts Payable 3,900
Retained Earnings (4/1/14) 10000
Accounts receivable 10120
Revenue earned 17400
Cash 13760
Supplies 6500
Common Stock 30000
Supplies expenses 7200
Utilities expenses 420
Wages Expenses 8800
Dividends 7000
Equipment 27500
Notes Payable 20000
From the information provided above, prepare an Income Statement.
| Claire Corporation |
| Income Statement |
| For the Month Ended April 30, 2014 |
|
|
From the information provided above, prepared a Statement of Retained Earnings for the Month Ended April 30, 2014.
| Claire Corporation |
| Statement of Retained Earnings |
| For the Month Ended April 30, 2014 |
From the information provided above, prepare a Balance Sheet for April 30, 2014.
| Claire Corporation | |||
| Balance Sheet | |||
| April 30, 2014 | |||
| Assets | Liabilities | ||
| $ | $ | ||
| Total Liabilities | $ | ||
| Shareholdersâ Equity | |||
| $ | |||
| Total Shareholdersâ Equity | $ | ||
| Total Assets | $ | Total Liabilities and Shareholdersâ Equity | $ |
