Please assist with the Balance Sheet, show workings and explain how we get common stock and retained earnings figures. You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information. 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. Life-Positive's Account 2021 ($)BalancesAccounts Payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.0019,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Cost of goods sold2022 ($)Sales 58,000.00 62,500.00Short-term Notes Payable 2,890.00 2,340.00The tax rate is 32%Shares outstanding 85,000.00 90,000.00

A balance sheet is a financial statement that provides a snapshot of a company's financial position…

Answered: You work as a freelance accounting…

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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Please assist with the Balance Sheet, show workings and explain how we get common stock and retained earnings figures.

You work as a freelance accounting professional and have been
recently engaged by the auditors of Life-Positive Inc. for an
assignment. In examining the company’s records, you have extracted
the following information.

1. Prepare a balance sheet for 2021 and 2022 for the company,
clearly showing information about each line item.

Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Cost of goods sold
2022 ($)
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00

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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