1) 1) Please Prepare a properly formated Profit and Loss Statement, Balance Sheet and Retained Earnings Statement fromthe following items:(In order for your Balance Sheet to Balance you will have to calculate ending Retained Earnings)Cash127,000 Accumulated Depreciation145,000 Prepaid Assets25,000Sales Revenue3,450,000 Accounts Payable219,000 Expense omitted by accident in prior year50,000Cost of Goods Sold1,079,000 Retained Earnings,beginning155,000 Salary Expense285.000Dividends15,000Selling Expense675,000 Gain on sale of assets110,000Inventory565,000 Land25,000 Wages Payable65,000Advertising Expense50,000 Unearned revenue95,000 Common Stock250,000Depreciation Expense75,000 Bank Loan Payable - Current165,000 Preferred Stock150,000Accounts Receivable321,000 Los from Discontinued Operations450,000 Intangible Assets466,700Equipment375,000 General and Administrative expense225,000The Effect tax rate on all items is 30 %.Calculate Earnings per share if 125,000 shares of common stock are outstanding

The items which are to be included in statement of profit and loss are Sales revenues Cost of goods sold Advertising expense Depreciation expense Salary expense Loss from discontinued operations General and administrative expense Expense omitted by accident in prior year Gain on sale of assets Dividends Tax payable The items which are to be included in balance sheet statement are Cash Inventory Accounts receivable Equipment Accumulated depreciation Accounts payable Retained earnings Land Unearned revenue Bank loan payable Prepaid assets Wages payable Common stock Preferred stock Intangible assets. Also given that, effective tax rate is 30%. Outstanding common shares = 125000 sharesStatement of profit and loss as per company accounts Particulars Amount Amount Income from operations Sales revenues Cost of goods sold Other incomes Gain on sale of asset TOTAL INCOMES (A) Salary expense Loss from discontinued operations Depreciation expense Advertising expense General and administrative expense Dividends paid TOTAL EXPENSES (B) Profit before exceptional items (A - B) Extra ordinary items : Expense omitted by accident in prior year PROFIT BEFORE TAX Tax payable (941000 X 30%) PROFIT AFTER TAX 3450000 (1079000) - - 675000 450000 75000 50000 225000 15000 - - - 2371000 110000 2481000 - - - - - 1490000 1490000 991000 (50000) 941000 (282300) 658700 The total net profit after tax in profit and loss statement = 658700.Statement of balance sheet Particulars Amount Amount 1. EQUITY AND LIABILITIES Shareholder stock Common stock Preferred stock Reserves and surplus Opening balance Net profit from profit and loss statement TOTAL EQUITY 2. NON CURRENT LIABILITIES 3. CURRENT LIABILITIES Accounts payable Bank loan payable - current Wages payable 1. NON CURRENT ASSTES Equipment Accumulated depreciation(145000 + 75000) Land Intangible asset Good will 2. CURRENT ASSETS Inventory Accounts receivable Unearned revenues Cash Prepaid assets 250000 150000 285000 658700 219000 165000 65000 375000 (220000) 25000 466700 13000 565000 321000 95000 127000 25000 400000 - - 943700 1343700 - 731300 1792700 - 155000 - - 504700 659700 1133000 1792700Calculation of earning per share : Earning per share = Net profit after tax Number of outstanding shares= 658700125000= 5.2696 per share Hence, the earnings per share = 5.2696 per share.

Business

Accounting

1) Please Prepare a properly formated Profit and Loss Statement, Balance Sheet and Retained Earnings Statement from the following items: ( In order for your Balance Sheet to Balance you will have to calculate ending Retained Earnings) Cash 127,000 Accumulated Depreciation 25,000 145,000 Prepaid Assets 219,000 Expense omitted by accident in prior year Sales Revenue 3,450,000 Accounts Payable 50,000 Cost of Goods Sold 1,079,000 Retained Earnings,beginning 285,000 Dividends 15,000 Selling Expense Inventory Advertising Expense 155,000 Salary Expense 675,000 Gain on sale of assets 110.000 565,000 Land 25,000 Wages Payable 65,000 50,000 Unearned revenue 95,000 Common Stock 250,000 Depreciation Expense 75,000 Bank Loan Payable - Current 165,000 Preferred Stock 150,000 Accounts Receivable 321,000 Loss from Discontinued Operations 450,000 Intangible Assets 466,700 Equipment 375,000 General and Administrative expense 225,000 The Effect tax rate on all items is 30 %. Calculate Earnings per share if 125,000 shares of common stock are outstanding

1) Please Prepare a properly formated Profit and Loss Statement, Balance Sheet and Retained Earnings Statement from the following items: ( In order for your Balance Sheet to Balance you will have to calculate ending Retained Earnings) Cash 127,000 Accumulated Depreciation 25,000 145,000 Prepaid Assets 219,000 Expense omitted by accident in prior year Sales Revenue 3,450,000 Accounts Payable 50,000 Cost of Goods Sold 1,079,000 Retained Earnings,beginning 285,000 Dividends 15,000 Selling Expense Inventory Advertising Expense 155,000 Salary Expense 675,000 Gain on sale of assets 110.000 565,000 Land 25,000 Wages Payable 65,000 50,000 Unearned revenue 95,000 Common Stock 250,000 Depreciation Expense 75,000 Bank Loan Payable - Current 165,000 Preferred Stock 150,000 Accounts Receivable 321,000 Loss from Discontinued Operations 450,000 Intangible Assets 466,700 Equipment 375,000 General and Administrative expense 225,000 The Effect tax rate on all items is 30 %. Calculate Earnings per share if 125,000 shares of common stock are outstanding

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1) Please Prepare a properly formated Profit and Loss Statement, Balance Sheet and Retained Earnings Statement from
the following items:
(In order for your Balance Sheet to Balance you will have to calculate ending Retained Earnings)
Cash
127,000 Accumulated Depreciation
145,000 Prepaid Assets
25,000
Sales Revenue
3,450,000 Accounts Payable
219,000 Expense omitted by accident in prior year
50,000
Cost of Goods Sold
1,079,000 Retained Earnings,beginning
155,000 Salary Expense
285.000
Dividends
15,000
Selling Expense
675,000 Gain on sale of assets
110,000
Inventory
565,000 Land
25,000 Wages Payable
65,000
Advertising Expense
50,000 Unearned revenue
95,000 Common Stock
250,000
Depreciation Expense
75,000 Bank Loan Payable - Current
165,000 Preferred Stock
150,000
Accounts Receivable
321,000 Los from Discontinued Operations
450,000 Intangible Assets
466,700
Equipment
375,000 General and Administrative expense
225,000
The Effect tax rate on all items is 30 %.
Calculate Earnings per share if 125,000 shares of common stock are outstanding

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