Project #16069 - Accounting

We are using the same company as in the first module. However, you need to consider some additional information.

  • One client had indicated that they were interested in purchasing $45,500 worth of products, so the bookkeeper recorded the transaction. 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 $45,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.

Smith Company

31-Dec-12

Trial Balance (accounts in alphabetical order)

 

 Debit

 Credit

Accounts payable

 

 67,000

Accounts receivable

 24,500

 

Cash

 30,000

 

Common stock

 

 10,000

Depreciation expense

 24,350

 

Cost of goods sold

 234,000

 

Equipment (net of depreciation)

 316,000

 

Insurance

 1,400

 

Inventory

 25,000

 

Long-term debt

 

 145,000

Marketing

 4,500

 

Paid-in capital

 

 90,000

Property taxes

 8,900

 

Rent

 18,000

 

Retained earnings

 

 ???

Revenues

 

 406,000

Salaries

 67,500

 

Utilities

 6,700

 

 

 

 

Total

760,850

 718,000

 

Required

Prepare an income statement for the company in good format. Also, explain the adjustments separately. Always include the name of the company and the period covered in the title. Don't forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.

Modular SLP Assignment Expectations

It is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.

Subject Business
Due By (Pacific Time) 11/05/2013 12:00 am
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy