The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000.Instructions1. Prepare a retained earnings statement for the year ending December 31, 2019.2. Prepare a Statement of Financial Position as at December 31, 2019. A. Report FormB. Account Form3. Calculate Earnings Per Share for the year ending December 31, 2019. Smart CorporationADJUSTED TRIAL BALANCEDecember 31, 2019DebitsCreditsSales1,437,750Notes Receivable120,000Investments (short Term)Accounts PayableAccumulated DepreciationEquipment132,75076,50046,500Sales Discounts15,750Sales Returns26,250Purchase Discounts12,000Cash285,000Accounts Receivable193,500Rent Revenue21,000Retained EarningsSalaries PayableNotes PayableCommon Stock, $15 par360,00033,000112,500450,000Income Tax Expense102,000Cash Dividends Declared105,000Allowance for Doubtful Accounts9,750Supplies on HandFreight-In16,50024,00075,000Short term InvestmentFreight-out22,500Sales commission318,000Correction for understatement of prior period net income (inventory error)Other Operating Expenses (30% Selling, 70% Administrative)75,000171,000Land97,500Provision for Bad and Doubtful Account51,000EquipmentMerchandise Inventory195,000118,500Building156,000Purchases750,000Dividend Income37,500Loss on Sale of Investment19,500Interest Revenue13,500Interest Expense18,750Bonds Payable150,000Gain on Sale of Land36,750Accumulated Depreciation-BuildingAccumulated Depreciation-Land30,0009,750Totals2,962,5002,962,500

Name: The company uses the periodic inventory system. A physical count of i
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Description: The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000.Instructions1. Prepare a retained earnings statement for the year ending December 31, 2019.2. Prepare a Statement

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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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The company uses the periodic inventory system. A physical count of inventory on December 31 resulted in an inventory amount of $50,000.

Instructions

1. Prepare a retained earnings statement for the year ending December 31, 2019.

2. Prepare a Statement of Financial Position as at December 31, 2019.
A. Report Form

B. Account Form

3. Calculate Earnings Per Share for the year ending December 31, 2019.

Smart Corporation
ADJUSTED TRIAL BALANCE
December 31, 2019
Debits
Credits
Sales
1,437,750
Notes Receivable
120,000
Investments (short Term)
Accounts Payable
Accumulated DepreciationEquipment
132,750
76,500
46,500
Sales Discounts
15,750
Sales Returns
26,250
Purchase Discounts
12,000
Cash
285,000
Accounts Receivable
193,500
Rent Revenue
21,000
Retained Earnings
Salaries Payable
Notes Payable
Common Stock, $15 par
360,000
33,000
112,500
450,000
Income Tax Expense
102,000
Cash Dividends Declared
105,000
Allowance for Doubtful Accounts
9,750
Supplies on Hand
Freight-In
16,500
24,000
75,000
Short term Investment
Freight-out
22,500
Sales commission
318,000
Correction for understatement of prior period net income (inventory error)
Other Operating Expenses (30% Selling, 70% Administrative)
75,000
171,000
Land
97,500
Provision for Bad and Doubtful Account
51,000
Equipment
Merchandise Inventory
195,000
118,500
Building
156,000
Purchases
750,000
Dividend Income
37,500
Loss on Sale of Investment
19,500
Interest Revenue
13,500
Interest Expense
18,750
Bonds Payable
150,000
Gain on Sale of Land
36,750
Accumulated Depreciation-Building
Accumulated Depreciation-Land
30,000
9,750
Totals
2,962,500
2,962,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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