The information below pertains to the General Company (which makes food products) for the fiscal year ending December 31, 2022. It is listed in no particular order. The company is located in a dry area that has never had floods. Accounts Payable, 25,000 Accounts Receivable, 54,000 Accumulated Depreciation (buildings), 55,000 Allowance for Doubtful Accounts (receivables expected to not be collected), 10,000 Bond Sinking Fund, 30,000 Buildings, 200,000 Cash & Equivalents (Includes $5,000 for a Long-term Endowment), 10,000 Cash Dividends Declared & Paid, 17,000 Cash Surrender Value of Executive Life Insurance, 50,000 Common Stock, 250,000 Cost of Goods Sold, 400,000 Gain from Correcting an Error Made in 2020 (before tax), 50,000 Gain on Sale of Equipment, 5,000 Interest Expense, 20,000 Inventory, 50,000 Investments in bonds - Trading (Mature in 2023; market value is $18,000, while cost basis is $20,000) Land (Includes $20,000 of Vacant Land Being Held For Sale), 80,000 Loss from a Write-off of Obsolete Inventories, 10,000 Loss on Operations and Disposal of Discontinued Packaging Division (before tax), 50,000 Net Sales, 700,000 Notes Payable (Includes $5,000 Due Within the Next Year), 80,000 Paid-in Capital > Par Value - Common Stock, 19,000 Patent (Net of $3,000 Amortization), 9,000 Prepaid Insurance Expense (Includes $5,000 prepaid for 2021), 15,000 Property Loss from Flood (before tax), 60,000 Retained Earnings, January 1, 2022, 100,000 Selling, General & Administrative Expenses, 200,000 Treasury Stock, 15,000 Additional information: Assume a 40% tax rate and that all income statement items are shown before tax. Also, assume 12,000 shares of common stock are authorized, although only 10,000 shares are issued and 9,500 outstanding. There were no items that would be considered other comprehensive income, either in this year or in prior years. Directions Prepare an income statement, statement of retained earnings, and balance sheet for the fiscal year ended Dec. 31, 2022 in good form.
PRACTICE PROBLEM. The information below pertains to the General Company (which makes food products) for the fiscal year ending December 31, 2022. It is listed in no particular order. The company is located in a dry area that has never had floods.
Accounts Payable, 25,000
Allowance for Doubtful Accounts (receivables expected to not be collected), 10,000
Bond Sinking Fund, 30,000
Buildings, 200,000
Cash & Equivalents (Includes $5,000 for a Long-term Endowment), 10,000
Cash Dividends Declared & Paid, 17,000
Cash Surrender Value of Executive Life Insurance, 50,000
Common Stock, 250,000
Cost of Goods Sold, 400,000
Gain from Correcting an Error Made in 2020 (before tax), 50,000
Gain on Sale of Equipment, 5,000
Interest Expense, 20,000
Inventory, 50,000
Investments in bonds - Trading (Mature in 2023; market value is $18,000, while cost basis is $20,000)
Land (Includes $20,000 of Vacant Land Being Held For Sale), 80,000
Loss from a Write-off of Obsolete Inventories, 10,000
Loss on Operations and Disposal of Discontinued Packaging Division (before tax), 50,000
Net Sales, 700,000
Notes Payable (Includes $5,000 Due Within the Next Year), 80,000
Paid-in Capital > Par Value - Common Stock, 19,000
Patent (Net of $3,000 Amortization), 9,000
Prepaid Insurance Expense (Includes $5,000 prepaid for 2021), 15,000
Property Loss from Flood (before tax), 60,000
Selling, General & Administrative Expenses, 200,000
Additional information: Assume a 40% tax rate and that all income statement items are shown before tax. Also, assume 12,000 shares of common stock are authorized, although only 10,000 shares are issued and 9,500 outstanding. There were no items that would be considered other comprehensive income, either in this year or in prior years.
Directions
Prepare an income statement, statement of retained earnings, and
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