the end of last month,Paarl Manufacturing had $45,945 in the bank. It owed the bank $224,500for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,937 and it owed its suppliers $12,999. The company owned property worth $252,000. It had$120,500 in finished goods,$103,500 in raw materials, and $38,000 in work in progress. Its production equipment was worth $456,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $232,000 in depreciation—$33,500 worth last month. The company has investors who put up $101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $216,000, and the costs associated with sales was only $40,500. Expenses were also relatively low; salaries were $43,000 last month, while the other expenses were depreciation, maintenance at $1520, advertising at $3350, and insurance at $280. In spite of $32,916in accrued taxes (Paarl pays taxes at 50percent), the company had retained earnings of $136,000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections.

Name: At the end of last month,Paarl Manufacturing had $45,945 in the bank.
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: At the end of last month,Paarl Manufacturing had $45,945 in the bank. It owed the bank $224,500for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,937 and it owed its suppliers $12,999. The company owned propert

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

At the end of last month,Paarl Manufacturing had $45,945 in the bank. It owed the bank $224,500for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,937 and it owed its suppliers $12,999. The company owned property worth $252,000. It had$120,500 in finished goods,$103,500 in raw materials, and $38,000 in work in progress. Its production equipment was worth $456,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $232,000 in depreciation—$33,500 worth last month. The company has investors who put up $101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $216,000, and the costs associated with sales was only $40,500. Expenses were also relatively low; salaries were $43,000 last month, while the other expenses were depreciation, maintenance at $1520, advertising at $3350, and insurance at $280. In spite of $32,916in accrued taxes (Paarl pays taxes at 50percent), the company had retained earnings of $136,000.

Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing.

First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections.

Current assets
Total Current Assets
Long-term assets
Balance Sheet
Paarl Manufacturing
As of the end of the month
Assets
Total Long-Term Assets
Total assets
]][

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions